CUSTOMER WITHHOLDING PAYMENT IN LIEU OF CLAIM (SHIPMENT WITHIN CANADA)

#1
Can someone please assist me with legal jargon/legislation that I can send my customer for Canada domestic work. I had a load stolen and now they are withholding payment on all prior loads until the stolen load is paid thru my insurance. The theft only just occurred so it's not like I can write a cheque immediately. The outstanding loads they owe for date back 30-60 days. Any help would be appreciated.
Thank you
 

loaders

Site Supporter
#2
Maybe a letter from your insurance company telling them that everything will be taken care of would set their minds at ease. Talk to your broker and see if together, you can calm your customer down. Hitting back at them with rules and legalese might just inflame the situation. We have been through the same scenario, depending on the adjuster , it could take a couple of weeks or more to get the claim finalized.
 

MikeJr

Moderator
Staff member
#3
I'd have to agree with Loaders, the problem is that when there is a claim, people sometimes are not logical and rational.

What you are looking for is in the Highway Traffic Act, Section 12.ii. - claim must be accompanied by a PAID freight bill.

Basically, you don't need to look at a claim unless the freight bill is first paid.

Keep well,
Mike
 

TransAction

Active Member
#5
It's also not legal in any industry to hold up unrelated bills on services that where completed. I had the same issue recently, I calmly explained this to the owner and received payment for my other shipments the following week. As per the damages bill, it was only about $400, so I'll take the win on the other bills for now.
 

Henry

Active Member
#6
We have only two insurance claims. Our attorney told me to withhold payment. Insurance companies often try to get out of paying claims.
In certain cases, the freight isn't always insured.
I have found that insurance companies are very quick at settling claims, unless there is some sort of issue.

I also learned that the insurance company will pay the freight charges, if they accept responsibility for the claim in full.

If the insurance company provides a payment date, your client should not withhold any payment, unless the payment is for freight charges for that delivery. If it is, the insurance company will pay the carrier.
 

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