There are numerous different ways in which a person may go about suing a moving company for damages. However, the most common legal action taken against a moving company is a breach of contract claim.
A breach of contract is a legal claim that one party to a contract may file against another party to a contract when one party to a valid contract fails to fulfill their duties and obligations under the terms of the agreement. In other words, the terms of a contract serve to guide the parties to the contract as to what they must do, and how they are to perform under the contract, in order to maintain their end of the contract.
As such, if one party to the contract does not adhere to the terms of the contract, they will be considered to be in breach of that contract. As a result, the non-breaching party will then be allowed to take legal action and may choose to file a civil lawsuit against the breaching party for damages that they suffered from the breach.
Contract breaches can occur in a variety of different contexts. In general, there are three main ways in which a party may be held liable for a breach of contract include:
- Anticipatory Breach: An anticipatory breach, also known as an anticipatory repudiation, occurs when the breaching party tells the non-breaching party that they will not be fulfilling the terms of their contract
- Minor Breach: A minor breach of contract occurs when a party fails to perform a small detail of the contract, such as failing to safely deliver items in a moving contract or failing to deliver the items by an agreed date
- Material or Fundamental Breach: A material or fundamental breach is the most commonly cited breach of contract legal action. They occur when the breach is so substantial that it essentially cancels the contract by rendering the performance by either party impossible
- For example, in a moving contract, if the moving truck is involved in an incident that causes destruction of property, then the moving company will be considered to have materially breached the contract to safely transport and deliver the items
When it comes to determining damages in a lawsuit against a moving company, a court will generally assess whether or not the breach was substantial or minor, in order to help the court determine what damages for breach of contract are available.
If you’ve encountered issues with a moving company in Minnesota, one of your first remedies is to file a claim with the moving company directly. Then, if the moving company is unable to provide you with a proper remedy, you may then move on to filing a lawsuit against the moving company.
Once again, this lawsuit will typically be based on a breach of contract. In other words, you will be filing a lawsuit based on how your property was initially received by the moving company in good condition but was either damaged, destroyed, or not delivered at all to the destination specified in the contract. As such, having a copy of your contract with the moving company will be crucial evidence.
In addition to filing a private civil lawsuit against the moving company, you may also consider alternative remedies, such as reaching out to the Federal Motor Carrier Safety Administration (“FMCSA”) which is the federal agency that deals with violations of commercial regulations. A local Minnesota lawyer will be able to walk you through all of your legal options to recover for the damages you’ve suffered.
Who Regulates Moving Companies?
As mentioned above, the Federal Motor Carrier Safety Administration (“FMCSA”) is the federal agency that deals with violations of commercial regulations, including regulating moving companies. Specifically, they investigate complaints against moving companies, transporters, and auto brokers.
If you are planning on filing a complaint with the FMCSA, you should be ready to provide all of the following information:
Be prepared with the following information:
- Your personal information, including your name, address, and telephone number
- The name, address, and telephone number of the moving company for which you are making a complaint
- The origin and destination of the shipment the moving company handles
- Any United States Department of Transportation or Motor Carrier identification numbers, if applicable
- Details regarding your alleged specific violation(s)
- A copy of all other information relevant to your complaint, such as your moving documents and contract, the bill of lading, and inventory pages that outline your property.
After making a complaint with the FMCSA, and if you are unable to reach an agreement with the moving company to remedy your issues, you may also choose to seek an arbitration hearing before the FMCSA. Then, a neutral third-party arbitrator may resolve your legal dispute without the necessity of filing a private civil lawsuit.
Are There Remedies You Can Have against a Moving Company?
As mentioned above, most legal actions filed against a moving company will be a breach of contract action. Once one party is able to prove that a breach of contract has in fact occurred, they will then be allowed to sue and collect damages from the breaching party.
In general, the most common type of damage awarded in a breach of contract action is compensatory damages. The term compensatory damages includes both general damages and specific damages.
General damages are damages that are meant to cover losses that are directly related to the subject matter of the contract, such as failing to deliver a person’s property in an undamaged condition.
On the other hand, specific damages are damages that are meant to compensate the non-breaching party for losses related to the breach but not resulting directly from the breach. For example, damages that are related to a person’s property not being picked up or delivered by a time set in the contract.
In addition to compensatory damages, there are other damages that may also be available for a breach of contract action against a moving company. Examples of other types of damages in contract law that are available for breach of contract actions include:
- Restitutional Damages: The purpose of restitution damages is to restore the non-breaching party to the position they were in before a contract was formed, such as refunding them what they paid the moving company
- Liquidated Damages: Liquidated damages are a pre-set amount of damages that are meant to reflect an estimate of the actual damages a party should receive, should a contract breach occur. A liquidated damages clause will be stated in the contract itself
- Nominal Damages: Nominal damages are essentially a symbolic damage that is awarded when no true harm resulted from the breach of contract, such as when the moving company loses the shipment but finds and delivers it at a later date
- Quantum Meruit: Quantum meruit is a Latin phrase that translates to “what one has earned,” and these damages are intended to recover the reasonable value of services performed by one party for another
- Remedies in Equity: Remedies in equity refer to a different form of legal remedies that aren’t monetary in nature, with the most common form of remedy in equity being specific performance
- Punitive Damages: Punitive damages are damages that are available when there is an incentive to punish and deter the offending party from re-committing such outrageous and offensive actions in the future.
When it comes to lawsuits against moving companies, moving company insurance policies typically come into play. In other words, moving companies will often have insurance policies to cover them in situations where the moving company may be liable for damages.
As such, one of the first things an individual should obtain when suing a moving company is a copy of any and all of the insurance policies that cover them from damages. After that, the person suing a moving company can negotiate a settlement with the moving company’s insurance.
In some cases, the moving company may have methods of transportation and delivery that result in them facing numerous legal actions from many different customers. In these cases, a class action lawsuit against the moving company may be possible. An attorney will be well aware of any class action lawsuits that you may join.
What Kind of Lawyer Do I Need to Sue a Moving Company?
You might be involved in a legal issue involving a moving company where you believe a breach of contract may have occurred. In that case, it may be in your best interests to consult with an experienced Minnesota business attorney.
LegalMatch can assist you in locating and setting up an initial consultation with an experienced breach-of-contract lawyer in your area. An attorney will be able to help you understand your state’s specific laws regarding lawsuits against moving companies, as well as the types of damages that are available for your specific situation.
Additionally, an attorney will be able to review any moving contracts in order to ensure that you entered into a valid contract. Further, an attorney will also be able to initiate a breach of contract action on your behalf.
It is important to note that many states allow for an attorney who is successful in a breach of contract claim to automatically recover their attorneys’ fees from the other party. As such, an attorney will often be able to include a claim for attorney’s fees in your damage claim. Finally, an attorney can also represent you in court, as needed.
