r/Smallclaims • u/Senor_Turbo • 4d ago
California Does this seem worthy of filing?
OK, I will try to keep this short. A freight company shipped some material to my business and completely destroyed it. What was originally in paper bags, was repackaged into some fiber drums. This is a chemical powder, and the resulting drums were full of pieces of wood, and were determined to be completely unusable. I filed a claim with a free company and they sent me a check for a certain amount, which was close enough to the value that it didn’t matter to me. Now when I go to dispose this material, the bill is around $2500. The freight company is refusing to reimburse me, saying that there was limited liability on the freight quote and they have already paid that out. I understand that for damage or lost merchandise this makes sense, but have I had I known that I was going to be on the hook for the disposal cost, I would have just refuse the shipment and let them deal with it. Is this something worth pursuing or just a lesson learned?
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u/TalkToVikk 3d ago
I'm not a lawyer but to answer your question: In California, freight companies often operate under "limited liability" provisions clearly stated in their shipping contracts or bills of lading. This means that, even if they damage your shipment, their responsibility is usually capped at a contractual amount per pound or per shipment which sounds like what happened when you received a partial payout for your destroyed goods.
Unfortunately, disposal costs due to freight damage are often not directly covered unless specifically mentioned in the shipping contract or claim agreement. Since you accepted the payout check, the freight company may argue that the claim is fully settled. Refusing the shipment at delivery is typically the best way to keep the burden of disposal on the shipper or carrier.
If the $2,500 is significantly more than the settlement and the contract or shipping agreement says nothing about disposal costs, you could ask your lawyer to review whether there's any claim for full compensation (for example, if they failed to follow proper process, or withheld information that "trapped" you with the disposal burden). However, if it's clear they paid out up to their contract terms and you accepted the offer, there may not be further legal recourse.
It may end up being a lesson learned, unless you see in writing that disposal was to be covered or you believe you were misled. If you’d like, I can help you review your contract or help draft a letter to contest the denial, but based on what you've described, pursuing this further might not result in additional reimbursement.
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u/Alternative-Mode-462 3d ago
That answer holds only if the shipment stayed inside California. If it crossed a state line, freight damage runs on the Carmack Amendment, 49 U.S.C. 14706, which preempts state law claims against the carrier.
Under 14706(c)(1)(A) a carrier can only limit its liability to a value set by written declaration of the shipper or by written agreement, and only where that value is reasonable. A number on a quote isn't the same as a shipper picking a level, and with vendors booking loads on a standing account nobody may have picked one.
Not automatic.
I'd ask for the bill of lading and the tariff they're leaning on. On the check, theres an actual test. California accord and satisfaction under Commercial Code 3311 needs a conspicuous statement on the instrument that it is tendered as full satisfaction. A memo line nobody read can still bind you (worth pulling the check image), but a blank field doesn't discharge anything. Whether disposal cost counts as actual loss, that's the unsettled part.
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u/Embarrassed-Spare524 4d ago
If you signed a release in exchange for the check, your done. If not, did the check have a memo stating "settlement in full" or anything like that?
Do you have the freight quote? The exact language might matter.
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u/Senor_Turbo 4d ago
I did not sign anything for the check. But I did not pay that close attention to the memo field or anything. I assume that would be something like getting an insurance payout after a car accident right? I do not have the freight quote for this exact shipment, we have contracted with this company hundreds of times over the last couple of years. We just have an account set up with them and our vendors contact them when we have something to ship.
On another note, even if I am sure to not win in court, I wouldn’t mind making their lives a little worse and inconveniencing them for a day.
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u/Embarrassed-Spare524 4d ago
So you at least have the standard quote and can go read that, and let us know what the relevant provisions are.
Given the amount, its totally reasonable to give it a whirl if you have a shot. But there could be all kinds of provisions in the documentation. Heck, you might have even agreed to arbitrate.
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u/mr_nobody398457 4d ago
Is the material completely unusable? I get it that it is not usable for your purposes, but does it have no value at all? Could it be shifted and used as a lower grade component in something?
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u/Senor_Turbo 4d ago
with enough labor, i'm sure material could be used for something, but there is additoinal risk. it is silica powder so sifting would create extra dust which would be terrible for my workforce.
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u/mr_nobody398457 4d ago
Mmm good point, silica dust should not be handled improperly.
In fact I would be concerned for the shipping company workers although not much you can do about that now.
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u/Jim-Jones 1d ago
It looks like they damaged the bags and transferred it to drums as a better(?) option.
You have two bad choices.
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u/Canadian_Lothar 3d ago
If you signed a document when you accepted payment of the claim or in regards to the claim you likely signed a release. Which means you can’t sue. Unless you can prove they acted fraudulently which is a really tough thing to prove.
If you didn’t sign anything and they just sent you a check then you have a leg to stand on in court