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 NASSTRAC's Legal Counsel John Cutler answers
your top questions. Check back often for answers to new questions.
John M. Cutler, Jr.,
is a principal with McCarthy, Sweeney & Harkaway. Since
graduating from Georgetown Law School in 1976, Cutler has
been a specialist in transportation law, representing shippers
before the ICC and STB, in federal and state courts, and in
legislative proceedings. Cutler was active in defending shippers
against undercharge claims during the undercharge epidemic,
and assists members and others with contract, bill of lading,
claims, classification and other transportation law issues.
He also represents shippers by rail, air and water.
As a member of NASSTRAC, you receive 24/7 access to online information based upon commonly asked legal questions such as
the one asked below. As a member, you also receive valuable one-on-one expertise from NASSTRAC's legal counsel, John Cutler,
on contract reviews, assistance with bills of lading, undercharge claims, and much more. So join today!
Q. We have received a demand for payment of original freight charges on shipments that moved more than 18 months ago. Are these claims valid?
A. No. The statute of limitations on freight charges is 18 months from the date of delivery under 49 U.S.C. § 14705(a) and (g). Attempts to collect original freight charges for older shipments are time-barred.
Q. Should I ship most or all of my freight in contract
carriage?
A. Yes. If you don't ship under a contract, the rates and
terms, such as accessorial charges, carrier liability limitations,
exposure to penalties for late payment, etc. will be governed
by the carrier's tariffs. Even if you negotiate rates and
charges, carrier rules tariffs, which will apply if there's
no contract, could undermine the negotiations. For example,
surcharges for fuel, security, hazmat, etc. could apply, and
liability limitations could lead to uncompensated losses.
If you use contracts, they should provide the protections
you need, and should not cross reference any carrier tariffs
with the possible exception of rate tariffs as in effect when
the contract is signed. If carriers want provisions of their
tariffs to apply, they can request inclusion of those provisions
in the contract and the parties can agree, disagree or compromise.
Subsequent unilateral tariff changes will not apply unless
the contract is amended.
John Cutler
McCarthy, Sweeney and Harkaway
2175 K Street NW
Washington, DC 20037
202-775-5560
Fax: 202-775-5574
Email
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Legal Advice with John Cutler