Is There Exposure To Double Payment Liability?
by Paul Lamboley, Former TIA General Counsel A shipper/consignor or receiver/consignee, who having paid an independent broker, who in turn has failed to pay the motor carrier for transportation services, is generally not liable and obligated to pay a second time, in either contract or common carriage. Background The double payment issue involves claims for nonpayment of freight charges made by carriers providing actual transportation, but who have not been paid for their services. Generally, the carrier looks to the third party for payment of freight charges, which the third party has obligated itself to pay. The third party is usually designated to act as the carriers agent for purposes of collection of freight charges, and thus once the third party has been paid, the carrier is deemed paid as well and must look to the third party. Third parties have both legal and market obligations to pay freight charges. If the third party fails to pay the carrier after being paid by the shipper, h
