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USPS noncompliance for valid insurance claim - Small Claims?

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MEISTER

Junior Member
What is the name of your state (only U.S. law)? Washington State

I live in the Seattle, WA area. I own a business and use USPS to ship everything because it's generally cheeper and easier to ship this method.

About 2-1/2 years ago, I shipped a package (rare European car headlights worth about $1500) to a customer. I insured the package for $1500. The package was damaged and both headlights were damaged. I have all the receipts and forms from the transaction.

My customer took it to his local USPS office to file a claim. They told him that he doesn't make the claim, and he should return it and I will make the claim. So my customer drives about 30-40 miles to return it and get a new set of headlights from me.

After receiving the damaged headlights, I return to my local USPS office to file a claim. I fill out off the paperwork and give them the damaged item.

Months and months go by and I get no insurance check for the damaged item. I contact the local USPS office and ask when I will be getting my check. They said "it sometimes takes up to 6-8 months. So wait a little longer".

10 months later I send a letter to the USPS claims office in Saint Louis, MO. I sent copies of the insurance info, receipt and claim forms. 2 months later, they reply with a letter that says, Please contact your local Post Office manager concerning this matter.

So I contact my local branch and give them the sane paper work I sent to Saint Louis. The manager says, I will look into the matter and contact you.

2 weeks later she calls me and says, "We threw out your head lights because they were laying around and didn't know what to do with them". I say, "Are you serious!" She says she will look into the matter and call me back with any info.

1 month, No Call.

I call her back, and she says "I re-filed the claim, and you should be receiving your check in 6-8 months."

No Check.

So 8 months later I send another letter to the USPS claims office in Saint Louis. I again sent copies of all the claim forms. 2 months later they finally reply with a letter that says, "Your local USPS office did not fill out the information at the bottom of the form, Please fill this out and return it".

At this point I'm pissed off. So I contact the USPS Consumer Affairs Division in Seattle, WA. I tell Dana, the manager my story, and they can't believe what I've just told them. She says she will personally contact USPS in Missouri.

A few more weeks go by and I get a call from Dana.

She says since it's been 2-1/2 years now, they have denied my claims. I say I will take this to court. She says you can not take the USPS to court because it is a government agency. I don't think that is true.

What can I do?

What is the process?
 
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Zigner

Senior Member, Non-Attorney
Any explanation? What court do I file in?

I just want to do as much as I can as far as filling out paperwork, etc...
You would need to file in Federal Court. You will need a lawyer. It will cost you MUCH more than you recover.
 

racer72

Senior Member
Seems odd it would take so long to process a claim. I have made a dozen or so claims over the years from my eBay sales and have always had my check for the accepted claims in about a month. But none of them were $1500 either, the highest was about $250.
 

tranquility

Senior Member
You can't sue the USPS for misdelivery or negligence related to the mail per statute. I'm not sure if the statute would apply here as it is a contractual issue and not one of negligence and you may be able to sue in federal court. I am sure there is some administrative process you would have to go through to the end before you have the right to sue them. Also, you need to ask them if they allow themselves to be sued first. Not only do I think you have not gone through the full administrative process, but also I think you are beyond the statute for doing the asking.

You have a lot of complex issues and problems in this suit. You need to see an attorney who will need to do some research before any true advice could be given.
 

MEISTER

Junior Member
You can't sue the USPS for ms-delivery or negligence related to the mail per statute. I'm not sure if the statute would apply here as it is a contractual issue and not one of negligence and you may be able to sue in federal court. I am sure there is some administrative process you would have to go through to the end before you have the right to sue them. Also, you need to ask them if they allow themselves to be sued first. Not only do I think you have not gone through the full administrative process, but also I think you are beyond the statute for doing the asking.

You have a lot of complex issues and problems in this suit. You need to see an attorney who will need to do some research before any true advice could be given.
A) There is no statute of limitations for how long a claim lasts. I already checked. I had 60 days to file a claim, which I did. I did everything by the book and what I was told by the USPS. I have filed claim before and have never had this happen.

B) My wife is a para legal, so she can do all the filing for me. I have many lawyer contacts my wife works with, one of which we are friends with and might even do this for free.

C) When I contacted them they said I can't sue them. But when I stated searching around, they have been sued before. ?

D) I wouldn't be suing them for negligence or mis-delivery, I would be suing them for refusing to process my claim, not following the rules of the USPS, my waisted time, and my damages.

I called the local Seattle CBS news station, and they are going to do a investigational report on my situation. So this will be brought to a lot of peoples attention in the Seattle area.
 

Zigner

Senior Member, Non-Attorney
D) I wouldn't be suing them for negligence or mis-delivery, I would be suing them for refusing to process my claim, not following the rules of the USPS, my waisted time, and my damages.
Refusing to process your claim - nothing to sue for.
Not following the rules - nothing to sue for.
Waisted time - nothing to sue for.
Your damages - you already said you wouldn't be suing them for negligence. I'm sure you mis-spoke though.

And, I'll tell you AGAIN. You CANNOT sue in small claims court. This is a FEDERAL AGENCY. You will need to file in FEDERAL COURT.
 

MEISTER

Junior Member
Refusing to process your claim - nothing to sue for.
Not following the rules - nothing to sue for.
Waisted time - nothing to sue for.
Your damages - you already said you wouldn't be suing them for negligence. I'm sure you mis-spoke though.

And, I'll tell you AGAIN. You CANNOT sue in small claims court. This is a FEDERAL AGENCY. You will need to file in FEDERAL COURT.
I understand, I am going to file in Federal / US District court.

I paid for the insurance, they broke my item, they are not paying. I think I have every right to sue for this. However I will consult my lawyer for exact laws on this. I will follow up with this post about it.

If someone can point me to a Federal Law that says I can't sue the USPS, I would appreciate it. I can not find one.
 

tranquility

Senior Member
A. There is certainly a statutory limitation on how long you have to file a request to sue. I believe it is six months, but it could be different.

B. OK, let her research things.

C. There are statutes against suing the USPS. However, there may be a special exception regarding the contractual issue you are mentioning. If they misdeliver the mail, no possibility of civil suit. If the mail truck hits yours, you can sue. Where does this fall? Ask the paralegal who will do the research.

D. Wasted time will not be compensible. Your damages will be the value of the item--if you win.
 

bluumax

Junior Member
Class action time

USPS is not untouchable. We could very easily find a ton of really p-off ebay sellers, like myself. I don't see why not. I'm sick of them destroying things.
I really believe it would be very easy to get a class action suit started. I wonder how many $$ in product they destroy daily.
Suing is stupid, but that seems to be the thing that gets people attention.
They have broken those small router bits I sell (more than once). They were taped to good cardboard, in a bubble wrap package. HOW?
"Did you buy insurance?" So, what? We have to buy insurance so you don't destroy our packages.
That comes pretty close to blackmail / extortion.
If I take my car to the mechanic & he beats the **** out of the body, but fixes the engine, he is liable.
I see absolutely NO difference. The judge would not say, "Well, did you buy insurance from the mechanic in case he damaged you car?"
Can you see that??
 

NoAlohaInHawaii

Junior Member
U.S. Post Office "Fake Insurance"

I agree. We need a class action. I sent several collectible items worth several thousand dollars through the mail with full insurance. When the package arrived to the buyer, it had been rifled by cutting a slit in the envelope and some of the items were missing. I filed a claim online. Having not received any further instructions from the Post Office for about a month, I began to make phone calls asking when I would receive my check. Only then did I find that nothing whatsoever had been done to process my check, or even to start the claims process, and there was no explanation of why my claim had not been started, nor was I notified. I tried to obtain phone numbers to fix the problem, and got the biggest run-around imaginable. I must have lost hundreds of dollars in pay as they went to ridiculous lengths to dissuade me from pressing my claim.

Finally, I was told that the receiving party had been notified to present their package for inspection. I contacted the receiver who denied ever hearing anything, and the receiver also mentioned that they had returned the damaged packaging to me.

After more days of run-around (literally whole days of dead-end calls, etc.) I was reached in St. Louis to to tell them this. Then I was told my claim would be denied, because the recipient had returned the packaging to me rather than presenting it to their own Post Office branch. I explained that the receiving party had never been notified and neither had I, so this was silly. How could the claim be denied for our failing to comply with instructions that were never given? The worst part was that the Post Office itself actually checked its records and acknowledged that they had never notified either me or the receiver due to a clerical error. But this did not matter. Despite the fact that they themselves admitted that no one was ever notified of any required action, they said they were now denying my claim because of our non-compliance with the requested action. Talk about a Catch-22!

I filed a claim in Small Claims Court, and received a message by phone just hours before the scheduled appearance that it had been moved to Federal Court. I am not even sure that this is true, and am going to appear in Small Claims Court to find out.

My take on this is that they just automatically deny any claim above a few hundred dollars, regardless of merit or proof.

People need to publicize this and call them on it. I am not a lawyer, but I am pretty sure the insurance is a contractual obligation. Let me know if you want people to join you in a class action suit, because I will. Right now I am going to try to represent myself in Federal Court, and see if the court allows it. I think it is allowed, although the Court probably frowns on it and I will be totally winging it.

It might be better to go the class action route, if others have suffered similar experiences.

I know is that I will never send any valuable item through USPS again. They do not appear to stand behind their insurance above a nominal value.

No Aloha In Hawaii
 

Holdek

Junior Member
Update?

I agree. We need a class action. I sent several collectible items worth several thousand dollars through the mail with full insurance. When the package arrived to the buyer, it had been rifled by cutting a slit in the envelope and some of the items were missing. I filed a claim online. Having not received any further instructions from the Post Office for about a month, I began to make phone calls asking when I would receive my check. Only then did I find that nothing whatsoever had been done to process my check, or even to start the claims process, and there was no explanation of why my claim had not been started, nor was I notified. I tried to obtain phone numbers to fix the problem, and got the biggest run-around imaginable. I must have lost hundreds of dollars in pay as they went to ridiculous lengths to dissuade me from pressing my claim.

Finally, I was told that the receiving party had been notified to present their package for inspection. I contacted the receiver who denied ever hearing anything, and the receiver also mentioned that they had returned the damaged packaging to me.

After more days of run-around (literally whole days of dead-end calls, etc.) I was reached in St. Louis to to tell them this. Then I was told my claim would be denied, because the recipient had returned the packaging to me rather than presenting it to their own Post Office branch. I explained that the receiving party had never been notified and neither had I, so this was silly. How could the claim be denied for our failing to comply with instructions that were never given? The worst part was that the Post Office itself actually checked its records and acknowledged that they had never notified either me or the receiver due to a clerical error. But this did not matter. Despite the fact that they themselves admitted that no one was ever notified of any required action, they said they were now denying my claim because of our non-compliance with the requested action. Talk about a Catch-22!

I filed a claim in Small Claims Court, and received a message by phone just hours before the scheduled appearance that it had been moved to Federal Court. I am not even sure that this is true, and am going to appear in Small Claims Court to find out.

My take on this is that they just automatically deny any claim above a few hundred dollars, regardless of merit or proof.

People need to publicize this and call them on it. I am not a lawyer, but I am pretty sure the insurance is a contractual obligation. Let me know if you want people to join you in a class action suit, because I will. Right now I am going to try to represent myself in Federal Court, and see if the court allows it. I think it is allowed, although the Court probably frowns on it and I will be totally winging it.

It might be better to go the class action route, if others have suffered similar experiences.

I know is that I will never send any valuable item through USPS again. They do not appear to stand behind their insurance above a nominal value.

No Aloha In Hawaii
What was the conclusion to this? I'm facing a similar situation.
 

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