Program Rules & Terms of Service

The following rules verify compliance with 49 CFR § 375.211.

1. Neutrality and Fair Advantage

In accordance with 49 CFR § 375.211(a)(1), this arbitration program is designed to prevent the Carrier (mover) from having any special advantage in any case where the Claimant (shipper) resides or does business at a place distant from the Carrier’s principal place of business. The venue and process shall remain neutral.

2. Independence of the Arbitrator

Pursuant to 49 CFR § 375.211(a)(4), the person authorized to arbitrate must be independent of the parties to the dispute. The arbitrator must be capable of resolving such disputes and authorized to obtain from the Carrier or the Individual Shipper any material or relevant information necessary to carry out a fair and expeditious decision-making process.

3. Voluntary Participation (Pre-Dispute)

The Carrier shall refrain from requiring the individual shipper to agree to use arbitration before a dispute arises. Arbitration is a voluntary alternative to court action that the shipper may elect to use after a claim is denied.

4. Applicability & Binding Limits

• Claims of $10,000 or Less: Arbitration must be binding if the individual shipper requests arbitration (49 CFR § 375.211(a)(7)).
• Claims Over $10,000: Arbitration must be binding if the individual shipper requests arbitration AND the Carrier agrees to it (49 CFR § 375.211(a)(8)).

5. Apportionment of Costs

The Carrier must not charge the individual shipper more than one-half (50%) of the total cost for instituting the arbitration proceeding against the Carrier. In the arbitrator's decision, the arbitrator may determine which party must pay the cost or a portion of the cost of the arbitration proceeding, including the cost of instituting the proceeding.

6. Legal Effects

If the arbitration alternative is chosen, the arbitrator’s decision is binding. This means that both parties must comply with the decision and generally cannot appeal the decision to a court of law, except under very limited circumstances provided by federal law.

7. Notification Requirement

Before execution of the order for service, the Carrier must provide notice to the individual shipper of the availability of neutral arbitration, including:

• A summary of the arbitration procedure.
• Any applicable costs.
• A disclosure of the legal effects of electing to use arbitration.

8. Initiation of Dispute

Upon the individual shipper's request, the Carrier must provide information and forms considered necessary for initiating an action to resolve a dispute under arbitration.

9. Oral Presentations

If all parties agree, the arbitrator may provide for an oral presentation of a dispute by a party or representative of a party. However, oral presentations are not mandatory unless agreed upon.

10. 60-Day Decision Deadline

The arbitrator must render a decision within 60 days of receipt of written notification of the dispute. The decision may include any remedies appropriate under the circumstances.

11. Extensions

The arbitrator may extend the 60-day period for a reasonable period if the Carrier or the Individual Shipper fails to provide, in a timely manner, any information the arbitrator reasonably requires to resolve the dispute.