I find this conversation fascinating !!!
I also find it highly unlikely that this policy can even be enforced, for the following reasons;
1) "Double Brokering" is not illegal. It is, as
@loaders said, unsavoury, but it's not illegal. The issue at hand is really that the guy at the end of the line doesn't get paid, then has no recourse to recovery. That transgression has other connotations outside the scope of Double Brokering, even though Double Brokering is the instigator.
TO CLARIFY: Double Brokering is not illegal providing certain thresholds are met. I have yet to find either statute or case law the specifically states Double Brokering as the charge and/or conviction. Persons accused and/or convicted in Double Brokering cases typically run afoul of other statutes such as fraud and identity theft. If anyone can find either statute or case law specifically indicating the charge and conviction being the actual words "Double Brokering" I would love to get a link, and dive into it further. I appreciate the help on that.
2) With the above policy in place, LL sets themselves up as ripe for a lawsuit. Most likely a discrimination suit, and possibly even a defamation suit. Essentially the policy accuses people who engage in the legal practice of Double Brokering of committing some sort of transgression, i.e. non-payment of invoices, fraud, identity theft, etc., before said transgression has occurred.
3) LL would have no jurisdiction whatsoever over interlining which is a perfectly legal transaction perpetrated between two legitimate carriers.
Years ago I acted as a load broker. I structured a particular lane that was awarded to me as a clear double brokering scenario. There was absolutely no doubt whatsoever that this was a double brokerage situation. However, I did it properly.
My customer knew I was giving the loads to another load broker. I told my customer at the outset, before the first load was ever dispatched. My reasoning was simple; where these loads were coming from I had no stable of reliable and responsible carriers. The load broker I would give these loads to had that stable of carriers.
The load broker I would be giving the loads to knew who my customer was. They also knew that my customer knew about them, and that my customer also had their phone numbers.
The carriers knew that the load broker they were getting the loads from was getting the loads from another load broker (me), and that they would be delivering to my customer. These carriers had my customer's phone numbers.
Throughout this entire transaction, nothing, except who got how much of a cut, was left unsaid, and that's the way it should be. Carriers were paid fantastic rates, and on time. The load broker made his margin. I made my margin. The customer was happy with the rate he was paying. This went on for years.
After you all pick your jaws up off the floor, I am certain you have numerous questions. I will try to preemptively answer some of them. But, if you have others, ask away.
Q: How did you get this contract?
A: Vertical integration, and lack of resources. I was already doing other work for this customer, and the customer did not have the internal resources to manage this volume.
Q: Why didn't the customer just call the second load broker in the first place?
A: The customer did not know the second load broker. They only became known to each other through my network of connections. Add to that my known reputation in the industry, and the service and performance guarantees issued to the customer.
Q: How did you know the carriers would get paid fairly and on time?
A: I dealt with honourable people. Honour is a lot less common today than it was then.
Q: I don't understand.
A: It's simple; the customer paid me to be responsible for his freight within a budget he could justify as a fiscally responsible solution to the corporation's needs.
Q: Who is the customer?
A: Go find your own.
Q: How much did you make?
A: I'm happy.
