Its a toss up...court sucks and cost you time and money, but.....1000 bucks is a lot of money to let them get away with.
Holding payment over BS claim
Discussion in 'Ask An Owner Operator' started by 6wheeler, Dec 24, 2013.
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Must likely it is powder coated and baked on, that gets expensive in a hurry.
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1st thing you should do is reference the carrier agreement you signed. It may very well state that they have the right to hold payment until all claims are resolved. Majority of agreements, especially from bigger brokers, state that they can hold payment.
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Same thing happen one my driver, He loaded a dented transformer, like if someone threw a strap over it or stood on it. But barely noticeable, until they took the unit off the trailer and the receiver started complaining about it and was blowing up my phone. I told him these things came from northern Guatemala by land all the way to Laredo,tx and that on the way anyone could of stand on it or threw a strap on top of it. After going back and forward, I ended up Paying $800 for a sheet of aluminum i could of bought in Home Depot. because of it i required to check the loads before putting it on the trailer and take pictures before leaving the shipper, especially tarped loads. And if they are damage or any scratches they most put the BS on the Bill Of loading. I had a bud that worked for a Big cheap moving Flatbed freight company i rather not name, and he told me they will sometimes claim fake minor damages to keep the money or the customer knew about them but they made a big deal of something small to get money off the shipment but wouldn't tell the driver or the broker.
IF you didnt tarp it, fight that BS claim, try to prove them wrong tell them they didnt tell you to tarp it, and that tree branches are out off your control to next time to tell people to tarp if so. -
The law is the customer has to pay the freight to the broker in full, and then the customer can file a claim. In turn, the broker MUST pay the full freight charges to the driver, then if there is a claim, collect from the driver however the contract specifies. The DOT just shut down about 10 household mover companies for this very practice, holding furniture shipments "hostage" because of a dispute about charges.
Freight is paid in full to all parties, then the claims begin. I know brokers pull this crap, and it will take a lawyer to stop it.
This is why brokers has such a lousy reputation. -
vangtransport hit the nail on the head. When something goes wrong you already set the stage for everything that will follow in the master contract and any addendum, such as a rate confirmation. Studebaker Hawk, you're correct but you stopped short of full advice because a carrier may agree to waive provisions of the federal motor carrier law in a contract.
This is why I always read my contracts and cross things out and initial. Sometimes I don't take a load if we can't reach an agreement on the terms of the contract. Price isn't the only issue. The scenario of the broker holding carrier payment for damage can be avoided by not granting right of offset to the broker. This is usually addressed in the master contract.
Every carrier should have a copy of Protecting Motor Carrier Interests in Contracts and study it like your business depends on it. It's a good beginning for understanding the legal part of the business (which to say is a HUGE part). Understand the law, read contracts and negotiate them...don't just accept them. This is business; everything is negotiable not just the rates. And have a Rules Circular of your own. You can call it a rules circular, rules tariff, statement of services, terms of service, whatever you like.
The link to buy the book is http://www.etrucker.com/purchase/Pr...-in-Contracts-Digital-Download-RES-PMCIC3.htm and it's absolutely an essential for any carriers library. You can visit my website and see that I publish my Service Conditions there as well as do my best to incorporate it into every contract I have and reference it on rate confirmations. www.oxmoose.com/tos
Sorry for the lecture. I love to talk about this topic, but it's time for lunch and so I don't have time to reword anything. Anyone who wants to talk about this topic feel free to call me. My contact info is on my website.rollin coal and trees Thank this. -
That's what you get for moving a cheap oversize load. I hope it was a local move
Sly Fox, windsmith and passingthru69 Thank this. -
Great subject, reinforces my decision to go back to tankers!
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This is a good reason you need to always check any damage before leaving the shipper and not any damage on the bill of lading. If you sign a contract where the broker can withhold payment and a claim is filed, then you are bound by the terms of the agreement.
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That's a great scam. Say you deliver a car and it's cod. I scratch it when you turn away and here you go,a
Claim, wait for your money.
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