Question arising from "Ethical" post...

[Manitoba Moose]

GSTrucks said:

“I take issue to your comment about pursuing legal action if you lose an account. So now carriers are exposed to this liability now as well in your opinion if they take freight through a 3rd party? I understand the context of this situation warrants a review which has sparked this discussion, but really, I think your comment to attempt at legal action for "losing an account" is a bit crazy. If that was the case we would all be busy in court, not moving freight, the way some customers jump around these days to different service providers. If you lose an account over 1 issue like this then your sales hat isn't on tight enough or you have had issues like this in the past, and maybe you need to look at your carrier selection for specific moves like this one for your customer? Just my 2 cents”

Now, every carrier has signed a 200 page agreement or contract sent over by a broker’s 12 retained lawyers on staff that says if you solicit our client, we’re suing you’re a$$ to kingdom come (all said tongue-in-cheek but I'm sure you understand the connotation).

Which leads me to ask…

I see more and more contracts and agreements coming across my desk just about every day with more and more $65,000 dollar words or wordings about legalities and less and less about services offered and payment terms so, has anyone ever been sued, heard of anyone being sued, lost a case, or have been found guilty of solicitation of some broker’s client and had to pay the 20, 25 or umpteen % to the broker that was injured?

Phew, that was a long sentence…

 

[ShawnR]

Yes we've applied similar legalities, it works when it is well written (or they end up spending a bunch of money). Either way in any case the customer usually ends up walking away from both parties and going to another provider.

 

[Freight Broker]

If someone loses an account for me through FRAUD or willfull negligence then yes indeed, I would pursue the matter legally, absolutely. Good customers are hard to get... try getting a 2 million dollar account yourself and then see how you feel when you lose it to someone else's total lack of care and lack of honesty. I understand that accounts come and go for many reasons that don't involve fraud or negligence..other people may have better rates, better service levels, more trucks etc...but losing an account due to fraud or willfull negligence is actionable...

 

[theman]

As someone who deals with customers in the USA much more than in Canada, I can tell you that almost always there is a contractual agreement in place UNLESS you are moving freight through the back door with a low level person.

The language in contracts simply gives you the right at your discretion to pursue action over any of what is said. It doesn't mean one is going to.

I agree with Freight Broker here, in most cases one may just let things go, but there is the odd case where there is fraud or willful intent to cause harm where action would be pursued.

It's quite rare though.