GENERAL ISSUES
-> Moving problemsJun 20, 14:47
Question by kim (B. A.)
The moving company which lost 19 boxes and damaged 11 pcs has offered me less than half to settle my claim. (This is one of the larger companies in the country and had a clear record for the previous 3 years with the BBB!!!)
What's our opinion of binding arbitration vs a civil lawsuit in which I would represent myself? - Lawyers aren't interested in amounts in the 15,000. range.
Jun 20, 15:17
Answer by bobfein (Bob F.)
Sorry to hear that.
I don't want this answer to sound like a legal advice, but I will do my best to help you with this problem.
First of all, despite the fact that the truth is on your side I would guess that beating a big moving company in the court will be a challenge. Personally I am not a big fan of law suits, for many reasons, since I believe legal struggle will be more wearisome for you then it would be for them, even if you win in the end.
Same could be true for the arbitration, although it is a quicker process, but at the same time if the arbitration works not in your favor then there is probably very little you can do about your loss.
You should also keep in mind that moving companies are well protected against the consumers. As sad as it is for many consumers, that is a fact. It also means that you probably agreed on the 60 cents per pound compensation, and did not purchase any additional insurance. In that case the result of an arbitration or a lawsuit could be really not what you want - the company will only pay you according to the weight of your lost and damaged items. That would probably be less then what they offer you now.
I would suggest you at least not to reject the idea of taking whatever compensation they are willing to offer you now.
I wish you good luck with resolving this issue and apologize for not being able to help beyond this advice.
Good luck with your move,
Bob F. @ MovingAnswers.org
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Jun 21, 10:13
Comment by kim (B. A.)
Hi, I did have full value insurance with a 500 deductable! No way will I accept their paltry offer. They allowed me to insure it for $50,000. for the trip here knowing full well that those boxes were missing. (It had been moved by them into their warehouse storage a year and a half before). And they 'forgot' to weigh the outgoing shipment!, didn't tell me about the missing boxes or bring in the damaged pieces until many many boxes were already in. I paid for full value I should receive full value! Is a lawsuit or binding arbitration the best way to go?
Jun 21, 12:51
Comment by bobfein (Bob F.)
In that case I see your situation in a completely different light.
First of all, you did very good by purchasing this insurance (obviously). It was naive of me to assume that a moving company will offer any significant compensation if the client was only protected with 60 cents per lb!
If you have all the documents in order then you have a case. I still cannot give you a solid answer whether the arbitration will work better then a law suit - but here is some information that could aid you in either case:
In our Moving Guide we explain how the full value moving insurance works (see Moving Guide: Full Value Moving Insurance). Basically, it would be up to you to prove that the value of items in your lost boxes plus the costs of the repairs and the lost value of the damaged items is higher then what the company is offering you as a compensation.
In your case you can get up to $49,500 (since you have a deductible), however the company will probably go far to prove that you lost boxes carried regular household junk, so it could be your word against theirs, since neither side can prove what really was in those boxes.
In case of arbitration or a law suit the arbiter (judge) will probably look for some middle ground and assign a flat average value to each box, and will probably accept your receipts for the repairs done to the damaged items (or any proof of the value for those items beyond repair).
Unfortunately (or maybe fortunately), neither of us ever participated in similar law suits or arbitration, so that is as far as I can go with advice on that matter.
Our team wishes you good luck with your case.
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