Going After Shipper/Receiver for Non-Payment - AS A BROKER

Discussion in 'Trucker Legal Advice' started by JimmyTwoTimes, Feb 22, 2024.

  1. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    Hello Fellow TRF Citizens,

    I understand that truck drivers and carriers are afforded certain legal rights as a transportation provider, so that if they are not paid by a broker they can go after the shipper or receiver to collect (as they very well should be allowed to do).

    My question: Does this legal right extend to brokers? In my mind this extended to brokers, but I can't seem to find anything on it when googling. Any advice provided would be great!
     
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  3. wichris

    wichris Road Train Member

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    Short answer, yes.
     
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  4. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    Thank you! If you had anything to reference or read I wouldn't hate that at all.
     
  5. wichris

    wichris Road Train Member

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    As a broker, have went after 2 shippers that wouldn't pay. (we had paid the carrier) Both turned over to B&B and we got paid, minus their %
     
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  6. xsetra

    xsetra Road Train Member

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    I'm an O/O. All the brokers I deliver for, I have to sign a contract and then get the rate confirmation.
    We all know this.

    My question! Doesn't the broker have the same type of arrangement and paperwork with the shipper and receiver?
    I thought you did.
    You provide a service. Get paid for it.
    Good luck.
     
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  7. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    Thanks Chris. What I'm looking into specifically is a scenario where the customer is the shipper, and isn't paying due to cash flows combined with vendor prioritization (e.g. they've decided paying someone else's invoices is more important with their limited cash flow). I'm wondering if legally the court would support collecting from their customer, the receivers we were delivering loads too.
     
  8. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    There is usually some type of load tender, although it may be as simple as an email with the load details for smaller shippers. And sometimes there is a contract, but not always.
     
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  9. wichris

    wichris Road Train Member

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    Be pretty tough, you would have to try all avenues to collect from the shipper first. And if they BK you're out of luck.

    If you don't care/they don't owe you a lot, file suit against the receiver. That will get the shippers attention real fast. If they don't want to lose
    their customer they'll pay up.
     
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  10. wichris

    wichris Road Train Member

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    Was the shipment INTRA or INTER ?
     
  11. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    It's a large chunk of payables, rather than a single shipment. And they were all domestic US. I think we will end up in a decent spot regardless, it just raised the question in my mind of whether or not there was legal precedence to pursue their customers (the receivers) for the money owed.
     
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