
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC14708]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
 PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS
 
       CHAPTER 147--ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES
 
Sec. 14708. Dispute settlement program for household goods 
        carriers
        
    (a) Offering Shippers Arbitration.--As a condition of registration 
under section 13902 or 13903, a carrier providing transportation of 
household goods subject to jurisdiction under subchapter I or III of 
chapter 135 must agree to offer in accordance with this section to 
shippers of household goods arbitration as a means of settling disputes 
between such carriers and shippers of household goods concerning damage 
or loss to the household goods transported.
    (b) Arbitration Requirements.--
        (1) Prevention of special advantage.--The arbitration that is 
    offered must be designed to prevent a carrier from having any 
    special advantage in any case in which the claimant resides or does 
    business at a place distant from the carrier's principal or other 
    place of business.
        (2) Notice of arbitration procedure.--The carrier must provide 
    the shipper an adequate notice of the availability of neutral 
    arbitration, including a concise easy-to-read, accurate summary of 
    the arbitration procedure, any applicable costs, and disclosure of 
    the legal effects of election to utilize arbitration. Such notice 
    must be given to persons for whom household goods are to be 
    transported by the carrier before such goods are tendered to the 
    carrier for transportation.
        (3) Provision of forms.--Upon request of a shipper, the carrier 
    must promptly provide such forms and other information as are 
    necessary for initiating an action to resolve a dispute under 
    arbitration.
        (4) Independence of arbitrator.--Each person authorized to 
    arbitrate or otherwise settle disputes must be independent of the 
    parties to the dispute and must be capable, as determined under such 
    regulations as the Secretary may issue, to resolve such disputes 
    fairly and expeditiously. The carrier must ensure that each person 
    chosen to settle the disputes is authorized and able to obtain from 
    the shipper or carrier any material and relevant information to the 
    extent necessary to carry out a fair and expeditious decisionmaking 
    process.
        (5) Apportionment of costs.--No shipper may be charged more than 
    half of the cost for instituting an arbitration proceeding that is 
    brought under this section. In the decision, the arbitrator may 
    determine which party shall pay the cost or a portion of the cost of 
    the arbitration proceeding, including the cost of instituting the 
    proceeding.
        (6) Requests.--The carrier must not require the shipper to agree 
    to utilize arbitration prior to the time that a dispute arises. If 
    the dispute involves a claim for $5,000 or less and the shipper 
    requests arbitration, such arbitration shall be binding on the 
    parties. If the dispute involves a claim for more than $5,000 and 
    the shipper requests arbitration, such arbitration shall be binding 
    on the parties only if the carrier agrees to arbitration.
        (7) Oral presentation of evidence.--The arbitrator may provide 
    for an oral presentation of a dispute concerning transportation of 
    household goods by a party to the dispute (or a party's 
    representative), but such oral presentation may be made only if all 
    parties to the dispute expressly agree to such presentation and the 
    date, time, and location of such presentation.
        (8) Deadline for decision.--The arbitrator must, as 
    expeditiously as possible but at least within 60 days of receipt of 
    written notification of the dispute, render a decision based on the 
    information gathered; except that, in any case in which a party to 
    the dispute fails to provide in a timely manner any information 
    concerning such dispute which the person settling the dispute may 
    reasonably require to resolve the dispute, the arbitrator may extend 
    such 60-day period for a reasonable period of time. A decision 
    resolving a dispute may include any remedies appropriate under the 
    circumstances, including repair, replacement, refund, reimbursement 
    for expenses, and compensation for damages.

    (c) Limitation on Use of Materials.--Materials and information 
obtained in the course of a decision making process to settle a dispute 
by arbitration under this section may not be used to bring an action 
under section 14905.
    (d) Attorney's Fees to Shippers.--In any court action to resolve a 
dispute between a shipper of household goods and a carrier providing 
transportation or service subject to jurisdiction under subchapter I or 
III of chapter 135 concerning the transportation of household goods by 
such carrier, the shipper shall be awarded reasonable attorney's fees 
if--
        (1) the shipper submits a claim to the carrier within 120 days 
    after the date the shipment is delivered or the date the delivery is 
    scheduled, whichever is later;
        (2) the shipper prevails in such court action; and
        (3)(A) a decision resolving the dispute was not rendered through 
    arbitration under this section within the period provided under 
    subsection (b)(8) of this section or an extension of such period 
    under such subsection; or
        (B) the court proceeding is to enforce a decision rendered 
    through arbitration under this section and is instituted after the 
    period for performance under such decision has elapsed.

    (e) Attorney's Fees to Carriers.--In any court action to resolve a 
dispute between a shipper of household goods and a carrier providing 
transportation, or service subject to jurisdiction under subchapter I or 
III of chapter 135 concerning the transportation of household goods by 
such carrier, such carrier may be awarded reasonable attorney's fees by 
the court only if the shipper brought such action in bad faith--
        (1) after resolution of such dispute through arbitration under 
    this section; or
        (2) after institution of an arbitration proceeding by the 
    shipper to resolve such dispute under this section but before--
            (A) the period provided under subsection (b)(8) for 
        resolution of such dispute (including, if applicable, an 
        extension of such period under such subsection) ends; and
            (B) a decision resolving such dispute is rendered.

    (f) Limitation of Applicability to Collect-on-Delivery 
Transportation.--The provisions of this section shall apply only in the 
case of collect-on-delivery transportation of household goods.
    (g) Review by Secretary.--Not later than 18 months after January 1, 
1996, the Secretary shall complete a review of the dispute settlement 
program established under this section. If, after notice and opportunity 
for comment, the Secretary determines that changes are necessary to such 
program to ensure the fair and equitable resolution of disputes under 
this section, the Secretary shall implement such changes and transmit a 
report to Congress on such changes.

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat. 910; 
amended Pub. L. 104-287, Sec. 5(38), Oct. 11, 1996, 110 Stat. 3392; Pub. 
L. 106-159, title II, Sec. 209(b), Dec. 9, 1999, 113 Stat. 1764.)


                            Prior Provisions

    Provisions similar to those in this section were contained in 
section 11711 of this title prior to the general amendment of this 
subtitle by Pub. L. 104-88, Sec. 102(a).


                               Amendments

    1999--Subsec. (b)(6). Pub. L. 106-159 substituted ``$5000'' for 
``$1000'' in two places.
    1996--Subsec. (g). Pub. L. 104-287 substituted ``January 1, 1996'' 
for ``the effective date of this section''.
