Transportation Brief: Warehouse Claims – How to Respond, Defend, Settle
Mar 21, 2017
Upon receiving a claim from a customer, a warehouse should first notify its insurer. It is imperative to satisfy the policy’s timely notice requirement should coverage be available. The warehouse should assess the claim, including the type of damages sought, and confirm the depositor has provided proper notice of claim by adequately identifying the goods or shipments involved. If the claim was not presented in a timely fashion, the terms of the contract or warehouse receipt may prohibit recovery. Next, the warehouse should determine if the contract provides for a limitation of damages. If the amount sought exceeds the damage limit, the warehouse may have a basis for enforcing this limit. Also, an assessment must be made of whether the claim seeks consequential damages (e.g., lost profits, investigative costs, chargebacks) that may not be recoverable under the contract. Finally, when agreeing to pay a claim, especially when the warehouse has used reasonable care in storing and handling the goods, it is critical to have the customer sign a release acknowledging the specifics of the claim and protecting the warehouse from subsequent estoppel arguments regarding waiver of the reasonable care standard.
Transportation Brief: Graves Amendment Shields Lessor From Liability
by Michael B. LangfordOwners of intermodal containers and chassis recently received protection from the Graves Amendment (49 U.S.C. § 30106) in a New York appellate case. In Eisenberg v. Cope Bestway Exp., Inc., the court held that the intermodal chassis lessor was not liable for the Plaintiff’s injuries.
Transportation Brief: First Circuit Deals Blow to Hair-Testing
by Prasad Sharma , Timothy W. WisemanOn December 28, 2016, the United States Court of Appeals for the First Circuit dealt a setback to the Boston Police Department’s hair-testing program used to assess an individual’s prior use of banned drugs. Jones v. City of Boston, No. 15-2015 (1st Cir. 2016). The decision may impact the potential use of hair testing programs in the trucking industry in lieu of currently prescribed pre-employment urine-testing.
Transportation Brief: Ohio Commercial Activity Tax Audits on the Rise
by Andrew K. Light , Ronald J. MorelockOperating interstate motor vehicles in and through a jurisdiction where the carrier does not maintain an office, terminal or resident employee may create a state tax filing obligation. There is an increase in Ohio Commercial Activity Tax (CAT) audit activity involving interstate motor carriers with some presence in the state.
- On the Road
Scopelitis attorneys are often invited to participate in meetings with transportation industry leaders. Learn more about their trips this quarter.
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