Suing an out-of-state broker in your state under the Long Arm

Discussion in 'Trucking Industry Regulations' started by gseweb, Dec 25, 2019.

  1. gseweb

    gseweb Bobtail Member

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    Not for purpose of providing legal advice, but I take as non-lawyers we’re not prohibited from "disseminating legal info" for personal reasons, like discussing the law and legal stuff.. So I ask everyone with the right knowledge here to chip in on the issue of suing in your local court under the Long Arm statutes a broker who’s incorporated in different state.

    Say you’re a carrier in Ohio, and the broker from WA screwed you for payment. The “minimum sufficient contact with the state requirements” to be able to sue an outsider under your state’s Long Arm provisions vary from state to state. I get that. However, because we’re talking about freight brokers, I think this should be a relatively simple criteria. Unless the broker in question is strictly an “intrastate” operator, they likely have contracted customers in your state—shippers and receivers—where they send trucks to/from all day long. In such case, a minimum sufficient contact requirement in most, if not all, states for the purpose of their Long Arm should likely be satisfied?

    Now, let’s assume I’m correct above. Say you’re allowed bring the suit against that shady broker from WA in your local Ohio court under its Long Arm. Say you prove your facts and win. Say you get the judgment. And now comes the trouble, of course. Statistically what, 75% of all judgments in this country never get collected? Much worse if the judgment you’re proudly holding is against someone from a foreign jurisdiction. Sure, supposedly you could domesticate your OH judgment in WA, but at what cost? And then what?

    In case of freight brokers, however, as a carrier can’t you just go and file your valid OH judgment, or on the basis of your OH judgment file a claim against that WA broker’s bond? Thoughts anyone, opinions, experiences…. Thanks.
     
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  3. JonJon78

    JonJon78 Road Train Member

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    I think @6wheeler has experience with this? Maybe he will respond.
     
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  4. ZVar

    ZVar Road Train Member

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    Why do you need a judgement to file on the bond?
     
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  5. Antinomian

    Antinomian Road Train Member

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    If you get a judgement you can make a claim against the broker's bond. That's what bonds are for. A bond prevents a losing defendant from refusing to pay, assuming the bond is large enough.
     
  6. ZVar

    ZVar Road Train Member

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    Don't need a judgement to file against the bond.
    Maybe if the bond is refused or it's an exempt commodity, but even then I don't know if a court order can pull from the bond. The company sure, but not the bond.
     
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  7. Doealex

    Doealex Medium Load Member

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    This is the only benefit of working with brokers versus directly with shippers. You don’t need a judgement or court order to file a claim with broker’s bond. All you need a contract with a broker and BOL ( signed at delivery).
     
  8. xsetra

    xsetra Road Train Member

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    Most broker packets(contracts) stipulate which court has legal jurisdiction.
    Usually it is in the area of the brokers residence.

    First legal action should be against the brokers bond. There is no cost to file on a bond. You only need the same paperwork you need to get paid from the broker. RC,POD,BOL and Invoice.

    Good luck.
     
  9. LoneRanger

    LoneRanger Road Train Member

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    May I ask what a POD is?

    I know RC and BOL, just never heard of pod, is it the invoice?
     
  10. Snailexpress

    Snailexpress Road Train Member

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    Proof of delivery, BOL signed by receiver.
     
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  11. LoneRanger

    LoneRanger Road Train Member

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    Cool thanks so a signed BOL. Got it
     
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