Many people report experiencing deceptive practices by moving companies when they move their households. Some companies perpetrate fraudulent misrepresentation, even taking a person’s money as an advance on moving services and disappearing without providing any service at all.
In some cases in Arizona, movers load a person’s belongings on their moving van. They then demand a price far above the original estimate to move the items to their destination. If the person refuses to pay, the movers drive off with their belongings.
The Attorney General of Arizona has advised people who have this experience to contact law enforcement right away because the actions of the moving company may be criminal. Law enforcement officers have the authority to direct a moving company to deliver and unload belongings being held illegally during in-state moves. A local Arizona lawyer would be able to provide additional information.
Arizona’s Hostage Load Law prohibits moving companies operating within the state, such as intrastate movers, from demanding payment and refusing to deliver or unload household goods unless movers comply with specific legal requirements. For example, when a customer has paid the total estimated price specified in their signed contract with a moving company, the moving company may not refuse to deliver and unload their belongings.
Of course, the general goal of dishonest tactics is to extract more money from customers. However, all situations that might seem to be scams are not necessarily fraudulent. For example, delays in delivering a person’s belongings may be caused by genuinely unforeseen circumstances, such as weather conditions or unexpected road closures.
Reportedly, delays in delivering a person’s belongings to the destination are common. Of course, delays can be the result of honest mishaps and miscommunication. A moving company only estimates the weight of a person’s belongings and the time it is going to take to complete a move. The final weight and time may differ from estimates for legitimate reasons.
An interstate move is a move across a state border. Interstate moves are regulated primarily by the Federal Motor Carrier Safety Administration (FMCSA). In an interstate move, a moving company must provide its customer with a written estimate of total charges or a guaranteed total price. If a person works through a broker and the broker gives them an estimate, the estimate must be in writing.
If the federal Carmack Amendment applies, and it does apply to interstate moves, it effectively limits the liability of moving companies. Specifically, the damages that a moving company must pay if a customer’s belongings are damaged or destroyed is the value of the lost or destroyed belongings or the cost to repair them if they are damaged.
In order to ensure that the Carmack Amendment applies, a moving company must issue a receipt, or bill of lading, for the property that the carrier transports to the customer’s new location. The moving company is responsible for any damage to belongings that it has transported. The owner does not have to prove that the moving company was in any way negligent.
The carrier may avoid liability by proving that one of the exceptions to Carmack liability applies if one of the following circumstances caused the damage:
- An act of God;
- The act of a public enemy;
- An act or default by the person shipping the items;
- The act of a public authority;
- The inherent nature of the goods shipped.
The statute of limitations for a Carmack Amendment claim is 9 months from the date of the loss. The parties to an interstate moving agreement are able to change the provisions of federal law that apply to an interstate move if they wish. The parties would want to be sure to put their agreement in writing.
A person could have experienced a significant loss from a clear fraud, e.g., the moving company collects a large deposit and disappears without providing any service. In that case, they would want to talk to a local Arizona lawyer. Their lawyer might advise them to report their experience to law enforcement as they may have been the victim of a crime. Then they could discuss the possibility of suing the moving company for damages.
In some situations, it may also be possible to join a class action lawsuit against a moving company on occasion. In one reported class action lawsuit, the customers alleged that a moving company ran a scheme in which it held their invaluable family heirlooms hostage after loading them onto their moving vans. The moving company then demanded that their customers pay cash ransoms amounting to a thousand dollars to get the return of their property.
The customers sought $5 million in damages, alleging that the moving company held their property ransom. When they paid the ransom, their belongings were returned in a damaged condition, and some items were never returned.
What type of lawsuit a person may file would depend on the unique facts of the person’s situation.
Who Regulates Moving Companies?
The U. S. Department of Transportation (USDOT) and the Federal Motor Carrier Safety Administration (FMCSA) regulate moving companies that do interstate moves. The FMCSA licenses moving companies that move people from one state to another. As noted above, the Carmack Amendment to the Interstate Commerce Act of 1877 applies to moving companies when they conduct interstate moves.
In addition to licensing moving companies, the FMCSA is in charge of formulating and enforcing safety regulations for interstate moving companies, as well as trucking companies, bus companies, and people who hold commercial driver’s licenses.
The FMCSA requires all moving companies to have a USDOT number and to comply with federal safety regulations.
When moving out of state, a person can check the USDOT number of a moving company by going to the FMCSA website at the following web address:
It is true that the FMCSA and USDOT regulate interstate moving companies only. However, a person may still check out the USDOT number of their intrastate mover to learn its status and get useful background information about a moving company.
Arizona does not register or license moving companies. The Attorney General of Arizona advises consumers contemplating a move to research moving companies carefully before they hire one. A person should check a company’s complaint history and reputation with the Better Business Bureau and other organizations that aim to protect consumers. A person wants to read online reviews.
Additional recommendations are as follows:
- Get estimates in writing;
- Get at least 3 written estimates from 3 different companies. The charge for an in-state move is usually based on hourly charges;
- Do not always choose the low estimate because dishonest moving companies may give a person a low estimate to get the business and then demand more money later in the move;
- Ask a moving company to provide a detailed written estimate of all possible charges and additional fees;
- Do not pay cash or a large deposit before the move happens. Use a credit card to pay as this offers some protections if there is a problem;
- Move items of exceptional value; do not entrust them to a moving company. Such items as cash, valuable electronics, jewelry, medications, medical equipment, and records that contain confidential information, e.g., Social
- Security numbers and bank account numbers, should not be entrusted to a moving company;
- Be present when the move happens to ask questions, provide direction, and make sure nothing is left unmoved;
- Do not sign blank or incomplete documents;
- A person should get copies of everything they sign.
Another option a person has is to buy moving insurance. If a person has insurance, they may turn to their insurance company to reimburse them for any losses they suffer. Of course, a person must also be cautious when buying insurance to make sure they get the coverage they need from a company that pays when a legitimate claim is submitted.
If a person hires a moving company, the company is responsible for the belongings that it moves. In fact, if a person is making an interstate move, federal law requires the moving company to offer 2 kinds of moving company insurance policies. The type a person chooses determines the payout they would receive if any of their belongings are lost or damaged.
Are Remedies Available to Me from a Moving Company?
If the move is an interstate move, then the federal Carmack Amendment limits the legal action that a person can take against the interstate mover and the remedy that a person may recover.
A customer is limited to recovering the value of the actual loss or damage to the property caused by the moving company. So, damages for non-economic losses would not be available in a Carmack claim involving an interstate move. A person also has to file a lawsuit in federal court.
If the move is an intrastate move, a person might sue a moving company for breach of contract, breach of warranty, negligence, or fraudulent misrepresentation. In most cases, a person would want to recover money damages to compensate them for their economic losses. For example, they might seek compensation for lost belongings or expenses they incurred because of a delay in delivery.
A person might sue for negligence or fraudulent misrepresentation and the facts of their case justify it. In that case, they might also recover an award of money for non-economic damages, such as emotional distress, pain and suffering, or even possibly punitive damages.
It is always important to remember that a person must have evidence to prove their losses, both economic and non-economic.
What Kind of Lawyer Do I Need to Sue a Moving Company?
You may have suffered losses because of poor service or worse from a moving company. In that case, you want to talk to an experienced LegalMatch.com who can quickly connect you to an Arizona business attorney who can analyze the facts of your case and help you recover compensation for your losses, either from the moving company that performed your move or the insurance coverage you had.
Jose Rivera
Managing Editor
Editor
Last Updated: Nov 26, 2024
