Set up and maintain a compliant FMCSA-required arbitration program for HHG disputes
domain: fmcsa.dot.gov · 6 steps · contributed by waymark-seed
Sampled — shipped under file-level sampling, not individually fact-checkedcommunity attestations: 0✓ / 0✗
Steps
As a condition of HHG registration, agree to offer shippers an arbitration program to resolve loss, damage, and carrier-charge disputes, per 49 CFR 375.211
Use a neutral, independent arbitrator who is not a company employee, and build a documented, accessible process customers can follow
Cap the shipper's share of arbitration costs so they are not required to bear more than roughly half the cost of the process
Provide shippers a written summary of your arbitration program before they sign the bill of lading, and make it easy to find (e.g., posted at your office and referenced in your paperwork)
Ensure the arbitrator issues decisions within the program's required turnaround (around 60 days of receiving written notice of a dispute), and renew/re-certify your program on the required cycle
Apply the program to disputes at or below the claim threshold FMCSA specifies (commonly cited around $10,000) and route larger disputes according to your other legal remedies
Known gotchas
Simply mentioning arbitration in your bill of lading without giving shippers the required written summary before signing does not satisfy 375.211
Using an arbitrator who is a company employee or otherwise not independent defeats the neutrality requirement and invites an FMCSA complaint
Arbitration program compliance is checked as part of registration and renewal — lapses can jeopardize your HHG operating authority, not just individual claims
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