False cargo claim

Atopshipping · Dec 31, 2025 at 7:49 AM

Happy and Healthy NEW YEAR 2026 ! Thanks everybody for your help .

Atopshipping · Dec 31, 2025 at 8:10 AM

Ridgeline said: ↑

OK got that.

Actually no that's not a problem. I will explain later.

What conflict of interest would they have?
Yes I will give you some ideas.

OK let's go over this and you can later correct me.

You contacted a licensed Broker for a load, going from Company A to State Garden, Boston.

You made a pickup at a shipper - Company A and they gave you the temp to set your at 34ºF.

You are told by the broker to set it at 35ºF. Why? I don't know.

You drop the load off, it is inspected (which is an important question), and 9 out of 40 pallets are rejected.

Now the broker is trying to make a damaged cargo claim and forcing you to pay for it because your insurance company refuses to pay - other issues with that.

So here are my questions.

1 - Who actually did the inspection?

Was it in-house under PACA regulations, or was it a real USDA inspector that State Gardens is paying for?

A USDA inspection will have a paper trail, and that is publicly accessible, especially if there is a cargo claim.

2 - What are the exact words on the contract that you have with the broker, specifically the part about rejected or damaged loads?

Why this is important is that under the FMCSA regulations, brokers can not directly represent a customer on any claim unless they have an arms-length company that would represent the consignee. I doubt that you signed an agreement with the shipper or consignee for that, but who knows if the broker snuck it into your general agreement.

You may also think about filing a complaint with the FMCSA before any court actions, but that's up to you and your lawyer.

3 - This is another issue that may invalidate all claims made. Who made the cargo claim?

Was it in writing?

Shippers or consignees must file a written claim with the carrier within 9 months of delivery (or expected delivery for lost goods). It must include: facts of loss/damage, amount claimed, and supporting documents (e.g., bill of lading, photos).

4 - What did your insurance company say?

You and your cargo insurance company need to work with the shipper or the consignee, depending on who is paying for the load. This is the FMCSA regulations, not something made up. The exception is IF a separate company that is connected to the broker (see number 2) is acting on behalf of the shipper or consignee. If this arrangement does not exist, then you and your cargo insurance have to work with the shipper or consignee ONLY; the broker has nothing to do with the claim.

5 - Under the USDA regulations and the law, specifically the Perishable Agricultural Commodities Act (PACA) that is enforced by the USDA's Agricultural Marketing Service (AMS), there is a dispute mechanism that can be used, it is a federal thing, not a state thing, and this situation may fall under it. PACA Branch at 800-495-7222

This has a dispute resolution process that may work out for you. Many cases are solved in the initial investigation stage of a complaint. PACA also allows you to sue in federal court, which would be against State Garden if they fail to make a proper claim under FMCSA regulations or used a outside party to collect without proof.

6 - if you sue the broker, you should consider doing it under FMCSA regulations, in a federal court and with damages and legal fees attached.

This is for you and a lawyer to discuss.

7 - Brokers are only supposed to ARRANGE transportation, not be responsible for the load, even under most contractual agreements. This also means that you, as the carrier, have the right to contact all parties involved; there is no way to prevent you from calling one or the other and confirming a specific issue or solving a problem.

All contractual agreements are also out the window when there is a cargo claim made for damages.

If you still want to pursue this, it has to be in court; small claims won't do it. Your insurance company should be involved with everything; they are the party on the hook.

One last thing - Ohiobar.org for lawyers, but I would look for one where your company is located.

So that's all I have.

EDIT - I would document everything: who you talked to, when you talked to them, who they are, and what was said. Be careful of recording conversations unless you transcribe them to paper. I would also get all the documents in order, including the contract with the broker. AND AND AND stop posting about it online.

EDIT EDIT AGAIN ---->>> always have the attitude that you are open to paying all legitimate claims to anyone you talk to, don't act like it is a made-up claim, you just want everyone to follow the laws and regulations ... RIGHT?
Click to expand...

Was it in-house under PACA regulations, or was it a real USDA inspector that State Gardens is paying for?
On my paper is USDA inspection file not PACA file. USDA inspection fee passed on me. I do not know how to check USDA public record.
USDA started the inspection 6 hours after the delivery. Where they kept bad pallets for 6 hours. Why are bad pallets not rejected? No pictures of bad pallets. Fresh pick baby organic spinach was not dumped, it was donated to Krochmal Farms. The State Garden representative with the broker orchestrated this mess and held the pallets for the USDA inspection for 6 hours. At the same time the freshly picked baby raw spinach was received to feed the farm animals by Krochmal Farms . The same person on USDA file who requested the USDA inspection from State Garden Inc and the same person received a donation to Krochmal farms.

A USDA inspection will have a paper trail, and that is publicly accessible, especially if there is a cargo claim. Would you please explain to me how to check it. Thank you

wichris · Dec 31, 2025 at 8:42 AM

First problem is you allowed the broker to collect on the claim. You have the right to deal direct with the claimant regardless of what the broker says.
Legal action will take place first in a state court that will follow contract law in the state regardless of federal regulations covering transportation. You may win,
more likely you will lose under the contract you signed. If you win you may be awarded attorney fee's or not.
Next step if you lose is to apply to federal court. They will require mediation first and if that fails then court.
If it moves to federal there is no attorney fee's awarded to either side on cargo claims unless proven it was a malicious claim. Filing a claim on bad product is not malicious. Both sides will absorb their own attorney costs. Attorney cost will be more than the claim was. Been their a few times.
To get a copy of the USDA report go to their website and request it.

Atopshipping · Dec 31, 2025 at 9:21 AM

wichris said: ↑

First problem is you allowed the broker to collect on the claim. You have the right to deal direct with the claimant regardless of what the broker says.
Legal action will take place first in a state court that will follow contract law in the state regardless of federal regulations covering transportation. You may win,
more likely you will lose under the contract you signed. If you win you may be awarded attorney fee's or not.
Next step if you lose is to apply to federal court. They will require mediation first and if that fails then court.
If it moves to federal there is no attorney fee's awarded to either side on cargo claims unless proven it was a malicious claim. Filing a claim on bad product is not malicious. Both sides will absorb their own attorney costs. Attorney cost will be more than the claim was. Been their a few times.
To get a copy of the USDA report go to their website and request it.
Click to expand...

Agreed I made mistake to take that load. Making a mistake can be embarrassing or even shameful. The truth is, everyone makes mistakes. By owning up to your mistakes and reflecting on where you went wrong, you can learn from your mistakes so that you don't repeat them in the future. Looks like you been their few times and have more experience. Looks like I have to accept my loses. I will try to report broker to FMCSA. Thank you for your advice.

wichris · Dec 31, 2025 at 9:39 AM

Only mistake was not dealing direct with the claimant regardless of what the broker threatened.
A claim has an exact dollar amount, not "around X"
No way to keep any broker from holding money for a claim, legal or not.
Would have been best to pay the claim direct, under protest, collect all owed to you from the broker and then fight the claim.

Atopshipping · Dec 31, 2025 at 9:48 AM

wichris said: ↑

Only mistake was not dealing direct with the claimant regardless of what the broker threatened.
A claim has an exact dollar amount, not "around X"
No way to keep any broker from holding money for a claim, legal or not.
Would have been best to pay the claim direct, under protest, collect all owed to you from the broker and then fight the claim.[/QUO

Agreed would be best to pay claim amount directly to the receiver. I collect all owed money from broker and was thinking to fight claim. I'm learning from my mistakes. Since 2018 never been this kind of mess.
Click to expand...

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