Client Alert: Unpaid Motor Carrier Claims: What Shippers Can Do to Reduce the Risk of Liability When Using Third-Party Brokers

With the effects of the ongoing pandemic and ever-changing economic conditions being felt throughout the transportation industry, our firm has recently seen an increase in claims by unpaid motor carriers against shippers and consignees for nonpayment, where the shipper paid a third-party broker, who then went out of business prior to remitting the shipper’s payment to the carrier. Faced with the unfavorable prospect of recovering from the broker, carriers are turning to shippers and their...
By: Shumaker, Loop & Kendrick, LLP

Array