49 U.S.C. § 13709 — Procedures for resolving claims involving unfiled, negotiated transportation rates

(a) Transportation Provided at Rates Other Than Legal Tariff Rates. (1) In general: When a motor carrier moving property (other than a household goods carrier), a freight forwarder (other than a household goods freight forwarder), or someone representing them claims more money on top of what was originally billed and collected, the person being billed can choose to settle the claim under (b), (c), or (d) — but only after showing that: (A) the carrier or freight forwarder has stopped transporting property, or is transporting it just to dodge this section; and (B) regarding the claim: (i) the carrier or freight forwarder offered a rate different from what was legally on file with the Board or Interstate Commerce Commission at the time; (ii) the person shipped goods relying reasonably on that offered rate; (iii) the carrier or freight forwarder never properly or timely filed a tariff for that rate, or never made a contract-carriage agreement; (iv) that offered rate was actually billed and collected; and (v) the carrier or freight forwarder is now demanding more money based on a higher rate that was on file. (2) Forum: A dispute about the showing in (1)(A) is decided by the court where the claim was filed. A dispute about the showing in (1)(B) is decided by the Board. While either dispute is pending, the person doesn't have to pay the carrier or freight forwarder anything more. (3) Effect of satisfaction of claims: Once a claim is settled under (b), (c), or (d), that settlement binds both sides, and they're not subject to chapter 119 of this title, as it stood on December 31, 1995, or chapter 149. (b) Claims Involving Shipments Weighing 10,000 Pounds or Less: A person facing this kind of claim on shipments each weighing 10,000 pounds or less may settle by paying 20% of the difference between the carrier's real tariff rate and the rate originally billed and paid. If there's a dispute about which rate legally applied, the Board decides it. (c) Claims Involving Shipments Weighing More Than 10,000 Pounds: Same idea, but for shipments over 10,000 pounds, the settlement percentage is 15% instead of 20%. Disputes about the applicable rate again go to the Board. (d) Claims Involving Public Warehousemen: Regardless of (b) and (c), a public warehouseman facing this kind of claim may settle by paying just 5% of the difference. Rate disputes here also go to the Board. (e) Effects of Election: If someone doesn't choose to settle under (b), (c), or (d), they can pursue whatever other rights and remedies exist under this part — or, for transportation before January 1, 1996, whatever rights existed under this title as of December 31, 1995. (f) Stay of Additional Compensation: If someone challenges the reasonableness of a rate under this section, they don't have to pay the carrier or freight forwarder any more money until the Board decides whether the challenged rate was reasonable. (g) Notification of Election. (1) General rule: A person must tell the carrier or freight forwarder which option — (b), (c), or (d) — they're choosing. Except as (2), (3), and (4) say, they can choose anytime. (2) Demands for payment initially made after December 3, 1993: If the carrier first demanded extra payment after December 3, 1993, and told the person about subsections (a) through (f) at that time, the person must choose by the later of: (A) 60 days after answering a lawsuit to collect the extra charges; or (B) March 5, 1994. (3) Pending suits for collection made before December 4, 1993: If the carrier already sued to collect before December 4, 1993, and then told the person about (a) through (f), the person must choose within 90 days after getting that notice. (4) Demands for payment made before December 4, 1993: If the carrier demanded payment before December 4, 1993 but hadn't sued yet, and then told the person about (a) through (f), the person must choose by the later of: (A) 60 days after answering a collection lawsuit; or (B) March 5, 1994. (h) Claims Involving Small-Business Concerns, Charitable Organizations, and Recyclable Materials. (1) In general: Despite (b), (c), and (d), a person doesn't owe any of the difference at all if: (A) the person qualifies as a small business under the Small Business Act; (B) the person is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code; or (C) the cargo involved is recyclable materials. (2) Recyclable materials defined: "Recyclable materials" here means waste products meant for recycling or reuse as part of a recognized pollution-control program.