PRIA, Government Policy, Made Personal

Summary

Carriers that register to move household goods must offer neutral arbitration to shippers for disputes about loss or damage to goods and about extra charges beyond what was paid at delivery. The arbitration must not give the carrier an unfair advantage if the shipper lives far away. Carriers must tell shippers, before the goods are handed over, about the arbitration option, its basic rules, any costs, and the legal effects of choosing it, and must give forms on request. Arbitrators must be independent and able to get needed facts. A shipper cannot be charged more than half the cost to start arbitration, and the arbitrator can decide who pays costs. Carriers cannot force people to agree to arbitration before a dispute happens. If a shipper asks for arbitration for a claim of $10,000 or less, the result is binding; for claims over $10,000 it is binding only if the carrier agrees. Oral hearings can happen only if everyone agrees to the time and place. The arbitrator must decide as fast as possible and at least within 60 days after getting written notice, unless a party delays and the time is reasonably extended. Remedies can include repair, replacement, refund, reimbursement, compensation, or ordering payment of extra charges. Materials used in the arbitration process may not be used to bring an action under section 14905. If the shipper files a claim with the carrier within 120 days after delivery or the scheduled delivery date and wins in court, the court must award reasonable lawyer fees to the shipper if the carrier failed to tell the shipper about arbitration, or an arbitration decision was not made within the 60-day (or extended) period, or the court is enforcing an arbitration decision after the time to perform has passed. A carrier can get lawyer fees only if the shipper acted in bad faith after arbitration finished or after starting arbitration but before the 60-day period (including any extension) ended and a decision was made. These rules apply only to collect-on-delivery moves. The Secretary had to review the program within 18 months after January 1, 1996, make needed changes, and report those changes to Congress.

Title 49, §14708

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(a)Offering Shippers Arbitration.—

As a condition of registration under section 13902 or 13903, a carrier providing transportation of household goods subject to jurisdiction under subchapter I or III of chapter 135 must agree to offer in accordance with this section to shippers of household goods arbitration as a means of settling disputes between such carriers and shippers of household goods concerning damage or loss to the household goods transported and to determine whether carrier charges, in addition to those collected at delivery, must be paid by shippers for transportation and services related to transportation of household goods.

(b)Arbitration Requirements.—

(1)Prevention of special advantage.—

The arbitration that is offered must be designed to prevent a carrier from having any special advantage in any case in which the claimant resides or does business at a place distant from the carrier’s principal or other place of business.

(2)Notice of arbitration procedure.—

The carrier must provide the shipper an adequate notice of the availability of neutral arbitration, including a concise easy-to-read, accurate summary of the arbitration procedure, any applicable costs, and disclosure of the legal effects of election to utilize arbitration. Such notice must be given to persons for whom household goods are to be transported by the carrier before such goods are tendered to the carrier for transportation.

(3)Provision of forms.—

Upon request of a shipper, the carrier must promptly provide such forms and other information as are necessary for initiating an action to resolve a dispute under arbitration.

(4)Independence of arbitrator.— (5) Apportionment of costs.—

Each person authorized to arbitrate or otherwise settle disputes must be independent of the parties to the dispute and must be capable, as determined under such regulations as the Secretary may issue, to resolve such disputes fairly and expeditiously. The carrier must ensure that each person chosen to settle the disputes is authorized and able to obtain from the shipper or carrier any material and relevant information to the extent necessary to carry out a fair and expeditious decisionmaking process.

(6)Requests.—

The carrier must not require the shipper to agree to utilize arbitration prior to the time that a dispute arises. If the dispute involves a claim for $10,000 or less and the shipper requests arbitration, such arbitration shall be binding on the parties. If the dispute involves a claim for more than $10,000 and the shipper requests arbitration, such arbitration shall be binding on the parties only if the carrier agrees to arbitration.

(7)Oral presentation of evidence.—

The arbitrator may provide for an oral presentation of a dispute concerning transportation of household goods by a party to the dispute (or a party’s representative), but such oral presentation may be made only if all parties to the dispute expressly agree to such presentation and the date, time, and location of such presentation.

(8)Deadline for decision.—

The arbitrator must, as expeditiously as possible but at least within 60 days of receipt of written notification of the dispute, render a decision based on the information gathered; except that, in any case in which a party to the dispute fails to provide in a timely manner any information concerning such dispute which the person settling the dispute may reasonably require to resolve the dispute, the arbitrator may extend such 60-day period for a reasonable period of time. A decision resolving a dispute may include any remedies appropriate under the circumstances, including repair, replacement, refund, reimbursement for expenses, compensation for damages, and an order requiring the payment of additional carrier charges.

(c)Limitation on Use of Materials.—

Materials and information obtained in the course of a decision making process to settle a dispute by arbitration under this section may not be used to bring an action under section 14905.

(d)Attorney’s Fees to Shippers.—

In any court action to resolve a dispute between a shipper of household goods and a carrier providing transportation or service subject to jurisdiction under subchapter I or III of chapter 135 concerning the transportation of household goods by such carrier, the shipper shall be awarded reasonable attorney’s fees if—

(1)the shipper submits a claim to the carrier within 120 days after the date the shipment is delivered or the date the delivery is scheduled, whichever is later;

(2)the shipper prevails in such court action; and

(3)(A)the shipper was not advised by the carrier during the claim settlement process that a dispute settlement program was available to resolve the dispute;

(B)a decision resolving the dispute was not rendered through arbitration under this section within the period provided under subsection (b)(8) of this section or an extension of such period under such subsection; or

(C)the court proceeding is to enforce a decision rendered through arbitration under this section and is instituted after the period for performance under such decision has elapsed.

(e)Attorney’s Fees to Carriers.—

In any court action to resolve a dispute between a shipper of household goods and a carrier providing transportation, or service subject to jurisdiction under subchapter I or III of chapter 135 concerning the transportation of household goods by such carrier, such carrier may be awarded reasonable attorney’s fees by the court only if the shipper brought such action in bad faith—

(1)after resolution of such dispute through arbitration under this section; or

(2)after institution of an arbitration proceeding by the shipper to resolve such dispute under this section but before—

(A)the period provided under subsection (b)(8) for resolution of such dispute (including, if applicable, an extension of such period under such subsection) ends; and

(B)a decision resolving such dispute is rendered.

(f)Limitation of Applicability to Collect-on-Delivery Transportation.—

The provisions of this section shall apply only in the case of collect-on-delivery transportation of household goods.

(g)Review by Secretary.—

Not later than 18 months after January 1, 1996, the Secretary shall complete a review of the dispute settlement program established under this section. If, after notice and opportunity for comment, the Secretary determines that changes are necessary to such program to ensure the fair and equitable resolution of disputes under this section, the Secretary shall implement such changes and transmit a report to Congress on such changes.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 11711 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Amendments

2005—Subsec. (a). Pub. L. 109–59, § 4208(a), inserted “and to determine whether carrier charges, in addition to those collected at delivery, must be paid by shippers for transportation and services related to transportation of household goods” before period at end. Subsec. (b)(6). Pub. L. 109–59, § 4208(b), substituted “$10,000” for “$5,000” in two places. Subsec. (b)(8). Pub. L. 109–59, § 4208(c), substituted “compensation for damages, and an order requiring the payment of additional carrier charges” for “and compensation for damages”. Subsec. (d)(3). Pub. L. 109–59, § 4208(d), added subpar. (A) and redesignated former subpars. (A) and (B) as (B) and (C), respectively. 1999—Subsec. (b)(6). Pub. L. 106–159 substituted “$5000” for “$1000” in two places. 1996—Subsec. (g). Pub. L. 104–287 substituted “January 1, 1996” for “the

Effective Date

of this section”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

§14708 Dispute Settlement Program for Household Goods Carriers

Summary

Title 49, §14708

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Effective Date

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata