Reportedly, many moving companies engage in deceptive practices. Some companies commit fraud. They may collect a large advance from a potential customer as an advance and then disappear without providing any moving service at all.
Of course, the basic goal of dishonest tactics is to extract more money from customers for less service. 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, the delayed delivery of a person’s belongings to their final destination is common in connection with long-distance moves. In addition, there can be honest errors 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 from one state to another. 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 has the effect of limiting 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 only 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 New Jersey 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 of the moving company requested damages of $5 million. They claimed that the moving company essentially held their property ransom. When they paid the ransom demanded by the company to get their belongings back, their belongings were returned in a damaged condition. The company never returned some items.
Who Regulates Moving Companies in New Jersey?
The U. S. Department of Transportation (USDOT) and the Federal Motor Carrier Safety Administration (FMCSA) regulate moving companies when they move households from one state to another, known as “interstate” moves. The FMCSA licenses moving companies that perform interstate moves. 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. 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 who plans a move within New Jersey may still check out the USDOT number of their intrastate mover to learn its status and get useful background information about a moving company.
The Regulated Business Section of the New Jersey Division of Consumer Affairs (NJDCA) also regulates intrastate moving companies in New Jersey. These are companies that move households from one location in New Jersey to another location within New Jersey.
New Jersey law requires all intrastate moving companies to provide safe and adequate services. They must obey all federal and New Jersey rules and regulations regarding the moving of household goods. A local New Jersey lawyer would be able to provide more information.
A person can check with the New Jersey Division of Consumer Affairs to see if their moving company is licensed and whether complaints have been made against the company. In addition to having a New Jersey license, a person should make sure their chosen company does the following:
- Schedules an on-site survey of the goods a person is having moved;
- Provides a copy of the required written estimate;
- Provides a copy of the NJDCA’s brochure, “Important Notice to Consumers Using Public Movers.”
If a person’s moving company does not do these things, it is not complying with New Jersey law, and that should tell a person that their company’s practices are questionable.
What Remedies Can a Person Obtain from a Moving Company?
If the move is an interstate move, then the federal Carmack Amendment limits the action that a person can take against their interstate mover and the remedy that a person may recover.
Per the Carmack Amendment, a customer is limited to recovering the value of the actual loss or damage to their 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 a lawsuit becomes necessary.
If the move is a New Jersey intrastate move, a person might sue a moving company for damages 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.
If a person were to sue for negligence or fraudulent misrepresentation and the facts of their case justify it, 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. So, for example, if a person and their family must stay in a motel because their belongings are not delivered on the date promised, they would want to keep receipts to show the cost of their stay.
Another option a consumer has when it comes to moving companies is to buy insurance to cover their move. Moving insurance can help reimburse a person for their economic losses if their move goes wrong. It may cover loss from damage or theft. As there are different ways to move, there are also different types of moving insurance tailored to the type of move a person makes.
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.
- Full Value Protection: With full value protection, the moving company is liable for the total replacement value of any of the customer’s lost or damaged belongings. The moving company has the choice to do any of the following if belongings are lost or damaged:
- Repair them;
- Replace them;
- Offer a cash settlement with a value of the cost to repair the items;
- Offer a cash settlement with a value of the cost to replace the items;
- Released Value Protection: This coverage is offered at no additional cost but provides only minimal protection. With released value coverage, a person receives up to 60 cents per pound for an item that is lost or damaged. So if a person’s 5-pound computer is valued at $600, the person receives only $3 if their computer is lost or damaged;
- Separate liability coverage: Some moving companies offer separate liability coverage through a third-party insurance company or an insurance broker for an additional charge. While the company itself remains responsible for the released value protection, covering only 60 cents on the pound, the additional insurance policy covers the rest of the loss up to the policy limits.
Whatever option a person chooses, they want to get the specifics of their coverage in writing. They then want to read the policy, ask questions, and make sure they know what is covered and what is not.
Some circumstances may limit a moving company’s liability under federal or state law. This would also make buying moving insurance more attractive. These circumstances may include the following:
- Packing any perishable or hazardous materials without informing the moving company of the presence of the items;
- A person packing their own items to save money may make it impossible to recover if the items are damaged due to inadequate packing;
- Failing to inform the moving company in writing that some items have exceptional value;
- Damage caused by natural disasters, such as a blizzard.
If a person plans to move themselves, perhaps by renting a truck, their renters or homeowners insurance policy might cover their losses if their belongings are lost or damaged. A person would want to check with their renter or homeowners insurance company before they make the move to confirm whether they have coverage and if so, what it covers and what the policy limits are. Some of the options are as follows:
- Relocation or Trip Transit Insurance: Keep in mind that if a person uses their own vehicle, they might be personally responsible for any damage or losses that exceed the limits of the auto insurance policy. So, a person’s best option might be to obtain a moving insurance policy to ensure that their belongings are fully protected.
Of course, different insurers offer different types of moving insurance coverage. For example, one company offers three moving insurance coverage levels, i.e., total loss, named perils, and all risks. Another company offers full replacement coverage that is based on an inventory list of their belongings provided by the customer.
Some policies may not cover belongings kept in storage during a move or items with exceptional value, such as collectibles or jewelry. If a person wants to be sure that they have total coverage, they may wish to buy storage insurance or extra coverage;
- Rental Truck Moving Insurance Coverage: If a person rents a truck for their move, the rental company may provide insurance coverage for the person, their passengers, the truck, and the cargo, depending on the policy a person chooses. Again, a person wants to be sure they know what they are buying, what it covers, and what it does not. Some policies exclude damage attributable to poor packaging.
The cost of moving insurance depends on such factors as the value of a person’s possessions and the type of coverage a person chooses. If a person selects only basic coverage or released value protection from their mover, it is usually included free of any extra charge as part of a person’s moving contract.
If a person selects full value protection moving insurance, they may pay about 1% of the total estimate of the value of their belongings.
What Kind of Lawyer Do I Need to Sue a Moving Company?
If you have suffered losses in connection with a move, you want to talk to an experienced New Jersey business attorney.
LegalMatch.com can quickly connect you to an attorney in New Jersey who can analyze the facts of your case and help you recover for your losses, either from the moving company that performed your move or the insurance coverage you had.
