Ride and Care Transportation

I believe it is the terminology being used that is causing the problem here. In most cases in our industry, an owner operator works pretty much exclusively for one carrier. Hauls their trailers, accepts their freight and is paid either a percentage of the freight movement, or a negotiated per mile rate. Usually the carrier provides the plates and other requirements for operating over the road, all under the carrier's name. Yes, the owner operator is the owner of the vehicle, but other than that, he is virtually indistinguishable from a company driver for the same carrier (maybe the truck is a bit more fancy). All of this takes place within the terms and conditions of the carrier/owner operator contract. While calling an owner operator a "sub contracted entity" is perhaps legally correct because his employment is governed by a contract, for most of us, they are just an alternative method for the carrier to move his freight. If for whatever reason, a carrier was refusing to compensate one of his owner operators for their services, and those services fell within the confines of their contract, I would suspect that the owner operator would have an easier time pursuing legal against against the carrier for breach of contract, as opposed to going after the shipper/receiver of the goods.
 
My point was, if we sub contract a load to a driver who has his own truck, that is brokering freight
And they can certainly pursue shippers and receivers for payment if the carrier doesn't pay. We broker loads to these types of sub contractors alll the time( they work with us full time) but I'm not pretending I'm not brokering freight. I Am!
While there may be a contract between the two parties, this does not prevent the end carrier ( driver with his own truck played and insured to GE carrier) to pursue the shipper and receiver if the carrier did not pay. That is the law.
 
Do you have a carrier/owner operator contract with these people?
Do they haul your trailers?
Do you provide plates or submit their fuel taxes?
Are their trucks logoed with your company name?
Are they free at any time to work for other carriers?
Do they submit an invoice to your company for each and every load they do?
If you answered "no" to the first four questions and "yes" to the last two, then yes, you are brokering freight to a trucking company.Trucking companies that own one truck and one driver. If you fail to pay them for their services, then yes, they can pursue action against the shipper/receiver. If they were "your" owner operators, bound by a contract between your company and them, they would be better off to sue you for breach of contract in the event you failed to pay them. It may or not be the law as you understand it, but it is certainly common sense to the rest of us!
 
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Then sue the carrier for breach of contract. While most intelligent collectors would sue all parties!
You might want to check out the case law on what qualifies as an end carrier sir!
 
So, no answers to those simple 6 questions?
You tell me, which of the following two scenarios represents brokering freight?
1) Sylvain owns a new KW and a 53' dry van. He has incorporated his company in Ontario. He offers his services to various carriers and brokers. You use him every Tuesday to haul a load from Toronto to Montreal. Sometimes you help him with a reload if you have one. Otherwise he finds his own. He buys his own plates and files his own fuel tax returns. He arranges for his own PL & PD and cargo insurance and has his own CVOR. After moving your freight he sends you an invoice for his services.
2) Marcel owns a new P'Bilt and 53' flat deck. He has worked for you for the last 5 years. He has signed a contract with you that outlines what he will provide and what you will provide. Part of what you provide includes plates, insurance, fuel reporting, a negotiated compensation package and assorted other goodies. He provides a truck in good mechanical condition, and his availability on a daily basis to haul any and all freight you give him. Your company name is proudly displayed on the doors of his tractor. He works exclusively for you every day. Every month, you provide him with a statement of all the work he has performed, minus any charges he may have incurred, and a cheque for that work.
Did you broker freight to Sylvain, or to Marcel?Hmmmmmm???? Also, if you decide not to pay the invoice Sylvain presented to you, who does he go after for payment. If you decide to short pay Marcel on the statement you provided to him, who does he look to for compensation.
 
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Wow, what a misunderstanding and misusing of terminology..
Driver is a driver of any vehicle, which doesn't belong him.
Leased O/O- is an O/O leased to one trucking company. ( May have a driver, working for HIM).
Independent O/O- is O/O with a running authority and insurance.
And Fleet is cherry on top.
Only third and fourth may legally buy and handle freight.
First and second acting on behalf there companies...
That's all, folks...
 
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to be honest, I'm not really reading your entire posts as you keep shifting positions/ topics. My point was, if a sub contracted( with truck) driver is hired by a carrier, and the carrier does not follow the agreement, that sub contracted driver( who was brokered the freight by the carrier) has the legal right to pursue the shippers/ receivers and the contracted party.( even the controlling mind or director)While you might suggest he only pursue that contracted party, that would be far from wise. By law, and based on the Federal Governments position, the freight is brokered/ interlined. it is illegal for the end carrier to charge GST if interlined also.

While there is a provision for one to recoup tax paid in error, under the excise tax act, that only applies once if caught.
Having contracts are wise, provided they are legal contracts. i.e. you can not agreed to pay 9.00 per hour when the minimum wage is higher.
 
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htcollections said:
Sorry to be the bearer of bad news. Contracts do not superceed law. You can't hire someone for 9 per hour when the law has a minimum wage. Case law is pretty clear on end carriers. What is the issue anyways. Always good to see all parties getting paid right?
Click to expand...

We talking about apples and you- oranges. I have even worse news for you. YOUR driver CAN NOT sue any
customers of HIS CARRIER for payment because it is NOT HIS name as a CARRIER on BOL.
Good night..!
 
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Sorry, but you are ill informed. Many parties can sue shippers and receivers even if their company name is Not listed on the waybill. Yes, Good Night!
 
In your post of Wed. @ 6:09PM, you refer to owner operators, and that giving them freight constitutes brokering. In further posts, you have interchanged owner operator with sub contractor. As you have seen from the replies, most of us use the term owner operator to mean a guy and a truck that works exclusively for you. Like my imaginary friend Marcel. It would appear, your use of the term sub contractor represents someone more like the Sylvain character I described. A completely independent fellow, beholden to no one, a real "one man band" of trucking. Giving him freight is brokering and no different than giving freight to any of the great carriers on this site. You dispatch your own freight to Marcel and you broker freight to Sylvain. That's the difference.
 
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Perfect. I was actually going to do that, but didn't want to in case you had more than one or two trucks. Yes you are a perfect expample of Sylvain, the independent trucker. Used to call them gypsies back in the day. All we need now if for an O/O from SHL to post and I'll have my Marcel. A hard working O/O who reports every day to the SHL terminal on Hwy 50.
 
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@ Igor The HTA and the BOL Acts, both protect the end carriers.
It matters not who is listed on the waybill these days, case law in Ontario jurisdictions normally protect the end carrier. ( entity with truck)
 
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Good. So all of the carriers out there that have decided to use the services of "their own, dedicated owner operators", as opposed to sub-contracted, independent one truck companies, can relax, and need not worry about being labelled a broker when they dispatch one of their O/O's to pick up one of their own loads. Rob, Mike Ludwig and all the others out their with a fleet of O/O's....are you resting easier?????
 
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