Car damaged during shipment, turns out shipping company is uninsured!

[masta_ace]

What is the name of your state (only U.S. law)? California

About half a year ago, I had two vehicles transported from Texas to California. I found the shipping company through Nationwide Transport Services (a broker service who finds and schedules a shipping company for you). When my vehicles arrived in California, both had damages to the hood and front bumper. Estimates to repair the damages came out to be approx. $3,300. However, the shipping company refuses to talk to us or take blame for the damages. After speaking with Nationwide to file a claim against the shipping company, it turns out that the shipping company has been uninsured since about three months prior to this incident. I told Nationwide they should reimburse us for the damages since they brokered our vehicles out to a shipping company without insurance. This whole situation has been an on-going back and forth for the past several months and has gotten us nowhere.

What are your thoughts on this situation? Any advice would certainly be appreciated.

 

[OHRoadwarrior]

What were the damages from?

 

[tranquility]

Why would the broker be responsible? Did you include a demand for insurance in your brokerage agreement? If you think the shipping company breached your contract or was otherwise responsible for your damages, sue them.

 

[masta_ace]

The damages occurred during the transportation of the vehicles by the shipping company.

We did not include a demand for insurance in our brokerage agreement. I know the broker is not directly responsible for the damages, but we do feel that we paid the broker to find a reliable shipping company for our vehicles, which they failed to do so by scheduling us with a shipping company without insurance.

The shipping company has been extremely uncooperative in terms of communication. I haven't had any experience in suing someone, so I am trying to avoid that route unless absolutely necessary.

 

[OHRoadwarrior]

Soooooo, lets try this again. What are the damages you say happened to the cars in transit?

 

[ecmst12]

Sue the shipping company in small claims court. Or use your collision coverage and let your insurance go after the shipping company.

 

[masta_ace]

Soooooo, lets try this again. What are the damages you say happened to the cars in transit?

During the transportation process, both vehicles were damaged. On one car, there were multiple dents on the hood, paint scratches on the hood, and paint damage on the front bumper as if it hit something. The second car has two dents on the hood with paint chips, as well as a dent on the rear trunk.

So the shipping company is located all the way in Florida, I'm currently in California. I'm not sure exactly how to proceed with filing a suit.

 

[single317dad]

During the transportation process, both vehicles were damaged. On one car, there were multiple dents on the hood, paint scratches on the hood, and paint damage on the front bumper as if it hit something. The second car has two dents on the hood with paint chips, as well as a dent on the rear trunk.

So the shipping company is located all the way in Florida, I'm currently in California. I'm not sure exactly how to proceed with filing a suit.

What proof do you have that the damage occurred during and not prior to shipping?

 

[masta_ace]

What proof do you have that the damage occurred during and not prior to shipping?

Good question. We signed a before-delivery Bill of Lading for both vehicles prior to shipment that listed the cars as free of damage. When we received the vehicles, they were extremely dirty and muddy and, unfortunately for us, we signed the after-delivery Bill of Lading before we noticed the damage (which they never gave us a copy of). Once we got our cars, we took them to get a car wash and that is when we noticed the damage. We then reported it immediately to Nationwide (approx. 30 minutes after receiving the cars from the shipping company).

 

[Proserpina]

Good question. We signed a before-delivery Bill of Lading for both vehicles prior to shipment that listed the cars as free of damage. When we received the vehicles, they were extremely dirty and muddy and, unfortunately for us, we signed the after-delivery Bill of Lading before we noticed the damage (which they never gave us a copy of). Once we got our cars, we took them to get a car wash and that is when we noticed the damage. We then reported it immediately to Nationwide (approx. 30 minutes after receiving the cars from the shipping company).

It would appear that the bolded will sink you.

 

[OHRoadwarrior]

Further, nothing it appears you found in the way of damages could not have occurred as a result of the transport vehicle following a gravel truck, that had been off road. I am not trying to be critical and picky, however, you did not pay for enclosed transport.

 

[masta_ace]

It would appear that the bolded will sink you.

Yeah that is my main concern with this situation. To sum up a long story, the truck driver had to pick us up and take us to our delivered cars. The shipping company dropped the cars off on the side of a road, which did not exactly give us a great opportunity to examine the cars before signing the Bill of Lading (because the cars were very dirty and there were cars passing by us on the road).

 

[single317dad]

Good question. We signed a before-delivery Bill of Lading for both vehicles prior to shipment that listed the cars as free of damage. When we received the vehicles, they were extremely dirty and muddy and, unfortunately for us, we signed the after-delivery Bill of Lading before we noticed the damage (which they never gave us a copy of). Once we got our cars, we took them to get a car wash and that is when we noticed the damage. We then reported it immediately to Nationwide (approx. 30 minutes after receiving the cars from the shipping company).

Well, it is certainly not in your interest for them to produce that document. If they have it, I'd just about guarantee their counsel will have in Admissions something like: "Admit that you received the automobiles on 04/11/2013." "Admit that you signed the Bill of Lading." "Admit that the Bill of Lading you signed stated that the automobiles were accepted in good condition, with no damage."

Not to mention that the clock is ticking. You may have plenty of time to file your case under procedure, but the longer you wait, the more likely it becomes that you won't convince anyone that the cars were damaged in transit.

That said, I don't doubt your story, because I understand how these things could happen. I've bought two cars from out-of-state auto auctions via an agent registered as a dealer in that state. Both were delivered by open auto carrier ("parking lot" in driver slang). The first one was delivered to my job while I was there; it was fairly clean and as expected. The second -- far more expensive -- car was delivered on a snowy day while I was not at my business. One of my employees signed for it. When I got there, I saw the beautiful car that I had bid on caked with about a half inch + of mud and road slush. I had to scrub the windshield just to drive it to the car wash. Luckily the car was fine, but I was pretty nervous until I inspected it fully. If there had been a problem, you can bet I'd have been on the phone in minutes, and in court within a few weeks if I wasn't satisfied.

 

[adjusterjack]

During the transportation process, both vehicles were damaged. On one car, there were multiple dents on the hood, paint scratches on the hood, and paint damage on the front bumper as if it hit something. The second car has two dents on the hood with paint chips, as well as a dent on the rear trunk.

Did you not have your own insurance on the cars?