Cargo Claims Adjustment Act

Summary

Cargo Claims Adjustment Act - Amends the Interstate Commerce Act, the Rail Passenger Service Act of 1970, and the Harter Act to allow shippers who file suit against a common carrier regulated under such Acts for damage to, or loss of, cargo in an amount less than $2,000 to include in such suit a claim for the recovery of reasonable attorney's fees unless the common carrier has established informal dispute-settlement proceedings to which both parties agree to be bound. Stipulates that an award for attorneys' fees may be allowed only if the shipper has filed a claim with the carrier and the carrier has not paid such amount within 120 days of its receipt. Directs the Interstate Commerce Commission to review and approve dispute-settlement procedures and to insure that such procedures conform with standards specified in this Act. Requires that persons who are authorized to settle cargo claims be independent of the carrier or carriers sponsoring the dispute-settlement procedures. Stipulates that where informal dispute settlement procedures are available and the shipper brings an action in court in lieu of such procedure then the defendant carrier who successfully defends an action for damage or loss of cargo may be awarded attorneys' fees. Stipulates that where such procedures do not exist the successful defendant carrier may only collect attorneys' fees if the suit was brought in bad faith. Authorizes the Interstate Commerce Commission to establish requirements to assure that claimants who are entitled to recover for damage to or loss of property from carriers do in fact receive such award.

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1 official file

• Introduced in House

  summary · EN · 26 September 1977

  Open at official source

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