Arbitration Program DOT

8 Factors Your Interstate Moving Company Must Know About the Arbitration Program DOT

 

An HHG company that conducts interstate moves must offer a program to all customers. That specific program’s known as an Arbitration program. What is it? Its purpose is to resolve issues about the following three entities.

1. Loss.
2. Damage moving claims.
3. Charges billed to an interstate moving company. This is beyond the charges that get collected at the delivery.

 

Your moving company may have to take part in the HHG Arbitration Program. When you do State to State moves the fmcsa regulations, reference 49 USC 14706. But let’s say your moving business does have to take part in an Arbitration program. Here are the 8 key factors that your company should know about Arbitration Programs for Household Goods:

1) Recognize where Shipper lives and works.

A deal can get worked out that will benefit both parties. For example, your business can ship the goods to the customer’s workplace instead of the house. Of course, most people live near where they work so getting information can legally keep an Arbitration claim damaging your business if you don’t hold participation. But you never know until you ask when acquiring the process of moving occurs in order.

 

2) Keep neutral arbitration in mind.

 

HHG movers have to tell shippers about their neutral arbitration. This needs to occur before preparing a shipper’s HHGs to get transported. Include the following three items when you mention neutral arbitration.

1. Full disclosure of all legal effects of Arbitration.
2. A synopsis of your procedures for the Arbitration program in which the applicant will participate.
3. A complete list of the estimated costs.

 

3) Provide all required forms.

 

Say the shipper requests information. The HHG mover’s required under US law to provide all the information. It must also provide all required forms. The forms serve a great purpose. They can help resolve disputes when arbitration takes place.

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4) Make sure your arbitrator has authorization.

 

Arbitrators must be independent. This is so bias will not occur. Arbitrators have to resolve disputes in a fair manner. Otherwise, lawsuits can occur. They must also make resolutions in a fast manner as well. The HHG mover has a responsibility to hold Arbitration. It has to make sure the arbitrator has proper authorization.

 

5) Understand the amount that shippers pay.

 

It’s the arbitrator’s responsibility to determine the percentage paid for each party’s order. But keep the next sentence in mind when it comes to arbitration costs. The shipper’s forbidden from paying more than half of the arbitration total.

 

6) Understand the terms of disputes.

 

HHG movers are not allowed to take one key action. They can’t force shippers to agree to arbitration before disputes take place.

7) The $10,000 rule.

 

Say a Shipper puts in a request for arbitration to take place. That means the HHG mover’s published tariff is responsible for claims of less than $10,000.

8) The more-than $10,000 rule.

 

Say the claims exceed $10,000. That means the HHG mover is bound to take part in arbitration. But keep the following in mind.

1. The shipper has to request arbitration.
2. The HHG mover has to agree to take part in that arbitration program for household goods.

 

New & Revised Arbitration Rules

 

There have been many instances in which carriers have opted not to pay awards on time. That’s why the new Rule 22 is getting put in place. It provides carriers with clear guidelines for proving Award payments.

 

New Rule 22: Order of the Arbitrator & Satisfaction of Award

 

Let’s go over the new standard performance period for paying any Award about a decision. It is now 45 days beginning on the date of the Order/Award.

This rule (and accompanying 45 day period) also applies to the Order of the Arbitrator. The only exception to the rule is when the arbitrator stipulates something else. A standard performance payment period can sometimes adhere to two other rules. They are Rule 24 and Rule 25.

Let’s say that one of the parties invokes Rule 25/Reconsideration of Awards or Orders. This means that the standard performance period is 45 days. The days begin from the date of the Final Order/Award. This regards any final Order/final Award that the Arbitrator puts in place.

Please recognize that the new Rule 25 used to have the title of Rule 23. This positioned the new Rule 24 to go into effect. The changing of these rules waives the extra $200 administrative fee. That fee dealt with correcting clerical errors made by FORUM.

 

New Rule 24: Correction of Orders/Awards

 

The FORUM can make corrections to administrative and clerical errors or mistakes. These take place when there is omission/oversight about the administration of cases. They can also happen when an Award or Order gets issued.

There are two situations in which a correction can take place. 1. When the Arbitrator/FORUM takes initiative. 2. When a party requests a correction. There is no official rule for fees when it comes to this type of request.

 

Revised Rule 25: Reconsideration of Orders/Awards

 

A party has a right to ask for a modification of an Order or Award. They must do so within 20 days after the Order or Award becomes official. All requesting parties must file the request through the FORUM. A requesting party should pay an extra fee of $200 to the FORUM.

Keep in mind that each party can never make a second request. The FORUM will notify the responding party ASAP about the modification requisition. The FORUM will send a copy of the request to each responding party. The responding party has a right to file a response with the FORUM. That party has 20 days beyond the date of the FORUM’s Notice to do so. The FORUM’s Notice goes out to the responding party about a request for modification.

There are four situations in which an arbitrator can reconsider an order/award. 1. The Order/Award has not gotten finalized. 2. The Order/Award is not clear or it features material mistakes. 3. The arbitrator didn’t reach a decision about the submitted issue. 4. Both parties decide an arbitration issue cannot get agreed upon. The arbitrator signs-off that an agreement is not in place before arbitration.