49 U.S.C. § 13711 — Alternative procedure for resolving undercharge disputes

submitted 31 years ago by Pub. L. 104-88 to r/title-49-TRANSPORTATION · 731 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law makes it an unreasonable practice for a carrier to demand extra money above a negotiated rate it never properly filed, if the carrier has stopped operating or is dodging this rule. The Board decides whether that demand counts as unreasonable, using set factors.

(a) General Rule: It's an "unreasonable practice" for a motor carrier moving property, other than household goods, under subchapter I of chapter 135 — or, before January 1, 1996, under the old subchapter II of chapter 105 — or a freight forwarder (other than a household goods freight forwarder), or someone representing them, to try to charge or actually charge the difference between: (1) the rate that was legally in effect under a properly filed tariff (under this chapter, or chapter 107 for pre-1996 transportation); and (2) the negotiated rate for that service — if the carrier or freight forwarder has stopped moving property between the places listed in section 13501(1), or is moving property there just to dodge this section. (b) Jurisdiction of Board. (1) Determination: The Board decides whether trying to charge or actually charging such a rate is an unreasonable practice under (a). If the Board says yes, the carrier, freight forwarder, or representative can't collect that difference. (2) Factors to consider: In deciding, the Board looks at: (A) whether the carrier offered a rate other than what was legally on file with the ICC or Board at the time of the move; (B) whether the person shipped goods relying reasonably on that offered rate; (C) whether the carrier failed to properly or timely file a tariff for that rate, or failed to make a contract-carriage agreement; (D) whether that rate was actually billed and collected; and (E) whether the carrier is now demanding more, based on a higher filed rate. (c) Stay of Additional Compensation: When someone challenges under this section whether it's reasonable for a carrier to try to charge or to charge the difference described in (a), on top of what's already been billed and collected, that person doesn't have to pay anything more until the Board decides whether the practice was reasonable. (d) Treatment: Subsection (a) is an exception to section 13702's requirements, and — for pre-1996 transportation — to sections 10761(a) and 10762 as they stood on December 31, 1995, regarding filed tariff rates and other general tariff rules. (e) Nonapplicability of Negotiated Rate Dispute Resolution Procedure: If someone chooses to enforce (a) for a rate, section 13709 doesn't apply to that same rate. (f) Definitions: In this section, "negotiated rate" means a rate, charge, classification, or rule that a motor carrier or freight forwarder and a shipper agreed to through negotiation, where no tariff was legally and timely filed, and where there's written proof of the agreement. (g) Applicability to Pending Cases: This section applies to every case and proceeding that was still pending on January 1, 1996.

the actual law source: uscode.house.gov ↗public domain

(a)General Rule.—

It shall be an unreasonable practice for a motor carrier of property (other than a household goods carrier) providing transportation subject to jurisdiction under subchapter I of chapter 135 or, before January 1, 1996, to have provided transportation that was subject to jurisdiction under subchapter II of chapter 105, as in effect on December 31, 1995, a freight forwarder (other than a household goods freight forwarder), or a party representing such a carrier or freight forwarder to attempt to charge or to charge for a transportation service the difference between (1) the applicable rate that was lawfully in effect pursuant to a tariff that was filed in accordance with this chapter or, with respect to transportation provided before January 1, 1996, in accordance with chapter 107, as in effect on the date the transportation was provided, by the carrier or freight forwarder applicable to such transportation service, and (2) the negotiated rate for such transportation service if the carrier or freight forwarder is no longer transporting property between places described in section 13501(1) or is transporting property between places described in section 13501(1) for the purpose of avoiding application of this section.

(b)Jurisdiction of Board.—

(1)Determination.—

The Board shall have jurisdiction to make a determination of whether or not attempting to charge or the charging of a rate by a motor carrier or freight forwarder or party representing a motor carrier or freight forwarder is an unreasonable practice under subsection (a). If the Board determines that attempting to charge or the charging of the rate is an unreasonable practice under subsection (a), the carrier, freight forwarder, or party may not collect the difference described in subsection (a) between the applicable rate and the negotiated rate for the transportation service.

(2)Factors to consider.—

In making a determination under paragraph (1), the Board shall consider—

(A)

whether the person was offered a transportation rate by the carrier or freight forwarder or party other than that legally on file with the Interstate Commerce Commission or the Board, as required, at the time of the movement for the transportation service;

(B)

whether the person tendered freight to the carrier or freight forwarder in reasonable reliance upon the offered transportation rate;

(C)

whether the carrier or freight forwarder did not properly or timely file with the Interstate Commerce Commission or the Board, as required, a tariff providing for such transportation rate or failed to enter into an agreement for contract carriage;

(D)

whether the transportation rate was billed and collected by the carrier or freight forwarder; and

(E)

whether the carrier or freight forwarder or party demands additional payment of a higher rate filed in a tariff.

(c)Stay of Additional Compensation.—

When a person proceeds under this section to challenge the reasonableness of the practice of a motor carrier, freight forwarder, or party described in subsection (a) to attempt to charge or to charge the difference described in subsection (a) between the applicable rate and the negotiated rate for the transportation service in addition to those charges already billed and collected for the transportation service, the person shall not have to pay any additional compensation to the carrier, freight forwarder, or party until the Board has made a determination as to the reasonableness of the practice as applied to the freight of the person against whom the claim is made.

(d)Treatment.—

Subsection (a) is an exception to the requirements of section 13702 and, for transportation provided before January 1, 1996, to the requirements of sections 10761(a) and 10762, as in effect on December 31, 1995, as such sections relate to a filed tariff rate and other general tariff requirements.

(e)Nonapplicability of Negotiated Rate Dispute Resolution Procedure.—

If a person elects to seek enforcement of subsection (a) with respect to a rate for a transportation or service, section 13709 shall not apply to such rate.

(f)Definitions.—

In this section, the term “negotiated rate” means a rate, charge, classification, or rule agreed upon by a motor carrier or freight forwarder and a shipper through negotiations pursuant to which no tariff was lawfully and timely filed and for which there is written evidence of such agreement.

(g)Applicability to Pending Cases.—

This section shall apply to all cases and proceedings pending on January 1, 1996.

Source credit: (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 877; amended Pub. L. 104–287, § 5(31), Oct. 11, 1996, 110 Stat. 3391.)

history & why it existsrecord from the source credit

1995Enacted · Pub. L. 104-88 · 109 Stat. 877
1996Amended · Pub. L. 104-287 · 110 Stat. 3391

A history note hasn’t been published yet. The record shows enactment by Pub. L. 104-88 on 1995-12-29.

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