Make Your Freight Claim Legally Valid

THE PAPER MUST BE WRITTEN IN PROPER ESSAY AND GRAMMAR FORM AND SHOULD BE HANDED IN ON 8.5X11 PAPER IN A PROPERLY SECURED DUOTANG OR FILE FOLDER. 

For the Group Project, each Group is responsible to submit a minimum of a 15 page report (5 pages per student). That means if you are a group of 4 students the minimum is a 20 page report.

(Identify the Canadian and/or Quebec Provincial Legislation applicable)

Canadian constitution Section 92.10

Transport Act chapter T-12, r. 6

Regulation respecting the requirements for bills of lading

(chapter T-12, s. 5) 

article 2050 of the Civil Code of Quebec

article 2035 C.C.Q

(Identify the legal procedures applicable for the filing of their claims)

Make Your Freight Claim Legally Valid

A claim is a written request for compensation for lost or damaged goods while they were under the responsibility of the carrier. A specific form isn’t necessary to make claim legally valid. Whether you use the carrier’s form, a generic form, or a typed letter, you need to do the following for your form to be considered legally valid:

Identify the shipment

∙ This allows for an investigation of the claim that you file against the carrier.

State the type of loss or damage

∙ For example, damaged goods, lost shipment, incomplete shipment, etc.

∙ Give a detailed description of the loss or damage stated, listing the products, quantity, price, weight (if necessary), salvage allowance or release value calculated.

State the claim amount

∙ Aren’t sure of the claim amount? In this case, you shouldn’t put an estimate such as “roughly $1,000”.

∙ In this scenario, a better approach would be to state the maximum amount that the carrier would be liable for. If, after further investigation, the claim amount is less, you’ll need to reduce the claim amount accordingly.

Provide information to identify the shipment, which may include:

∙ Copy of Original bill of lading signed at shippers.

∙ Vehicle number

∙ Origin date

∙ Delivery date

∙ The shipper’s number

∙ Itemized invoice outlining loss to the shipment.

The original invoice verifies that the amount of the claim does not exceed the terms of sale (value of the goods) at destination, and excludes any prospective profit. The original invoice must disclose all discounts and allowances, if any.

∙ Copy of the freight bill

The original paid freight bill showing that freight charges on the shipment against which the claim is filed have been paid in full. In order for a claim to be finalized, all freight charges must be paid.

∙ Notification of loss

∙ Explanation of how losses were calculated

∙ Photographic evidence – this is highly recommended

Make sure to include all necessary documents and information the first time. Carriers are known to return claims due to lack of needed information, slowing down the process. Carrier will have rules and regulations regarding what documentation is needed.

Provide original documents where possible.

Who Should I File The Claim Against?

You should file the claim against the carrier. In many circumstances, there will be more than one carrier. In these cases, you’ll want to file your claim against either the originating carrier or the delivering carrier. It is not necessary to file the claim against intermediate connecting carriers - unless it is definitely known that a connecting carrier caused the loss or damage to the shipment.

You should send the claim to the carrier’s claim manager, rather than their insurance company.

If you use a broker or 3PL, they are not typically considered liable for damages – after all, only the carrier takes possession of the goods. If your intermediary has specifically accepted liability for the shipment within their contract, then you would file your claim against them. However, in most cases you would simply file your claim against the carrier. When you file against the carrier, you should send a copy of the claim to your broker as well.

How Should I Submit My Claim?

Since the date of receipt by the carrier determines whether or not the claim has been filed within the allotted time frame, claims should be filed via delivery methods which could provide a confirmation of receipt. Any of the following methods are suitable for filing a claim:

∙ Fax

∙ Registered or Certified mail

∙ Return Receipt Requested (RRR)

∙ Express Mail; Express Courier Services

∙ Electronic Data Interchange (EDI)

∙ Email (with receipt)

Simply calling the carrier will not count as legally filing a claim, so make sure you use an approved method that will provide a paper trail.

After The Claim is Filed

The carrier is required to provide you with written acknowledgement of your claim within 30 days.

The carrier will pay you, refuse your claim, or present a compromise within 120 days of receiving the claim; alternatively, they may provide status updates every 60 days.

Unless your carrier is taking immediate action, it is a good idea to send the carrier a reminder letter at 30, 60, 90, and 120 days.  

(the court or jurisdiction in which the claims MUST be filed)

The Supreme Court, simplified the jurisdictional test and the list of possible presumptive factors that give rise to jurisdiction, limiting them to the following four:

(a) the defendant is domiciled or resident in the province;
(b) the defendant carries on business in the province;
(c) the tort was committed in the province; and
(d) a contract connected with the dispute was made in the province.