What are your rights when a broker does not pay?


Have you or your trucking company ever been harassed by a broker or freight forwarder that went bankrupt, or maybe even no intention of paying to start? Although the situation may seem hopeless, with the right strategies, you can still recover some or even all of the unpaid freight bill.

Access all episodes of Overdrive’s trucking law occasional series through this link.In this video, part of Overdrive‘s Trucking Law series, Paul Taylor, managing partner of the Truckers Justice Center and an attorney who has represented drivers and owner-operators for more than 25 years, has produced a practical guide to tracing responsible parties and, eventually, payment.

Knowing who you’re dealing with – and knowing the difference between a freight broker and a freight forwarder – is the first step. This distinction determines who a carrier can go to for payment.

Taylor also explains that understanding and reading the fine print of a broker’s master contract of carriage is key to determining who the carrier can go to for payment.

Taylor’s guide also discusses Section 7 of the Uniform Bill of Lading, when a broker’s trust fund surety company is responsible for payment, and whether companies are entitled to payment from a deceased broker’s bank.

You can hear all of that and more in the video above, or by reading Taylor’s guide originally published in January 2021 here.

[Related: ‘You just lose’ when middlemen don’t pay]


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