Many people report that moving companies engage in deceptive practices. Some companies perpetrate fraud, even taking a person’s money as an advance on moving services and disappearing without providing any service.
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 unexpected circumstances, such as weather disasters or unexpected road closures.
Delivery delays are reported to be common with long-distance moves. In addition, honest errors and miscommunication can occur. A moving company only estimates the weight of a person’s belongings and the time it will 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 and is regulated primarily by the Federal Motor Carrier Safety Administration (FMCSA). In an interstate move, a moving company must provide their 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 pays 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.
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 Virginia 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 is going to depend on the unique facts of the person’s situation.
Who Regulates Moving Companies in Virginia?
In every state, the U.S. Department of Transportation (DOT) 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.
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 may still check out the USDOT number of their intrastate mover to learn its status and get useful background information about the company.
In addition, in Virginia, the state’s Department of Motor Vehicles (DMV) regulates moving companies. They regulate all moving companies with respect to all issues regarding the performance of their duties, such as rates and charges. The Virginia DMV requires that all of the rates for moving services and charges made by moving companies be on file with the DMV and subject to DMV approval.
In Virginia, moving companies are required to file a catalog of their rates and charges with the Virginia DMV. The DMV is responsible for correcting any abuses in the moving industry in Virginia.
In addition, the Virginia DMV requires all certificated moving companies doing business in Virginia to have an active minimum amount of insurance for public safety and cargo protection. All companies that perform residential moves must have insurance coverage or a bond. No certificated or permitted household goods carrier is allowed to operate without insurance coverage that is on file with the DMV.
A person would want to check with the Virginia DMV to see if their mover is in compliance with all requirements.
Consumers have 30 days from the date of delivery of their belongings at the end of a move to file a claim with the moving company. If the consumer does not file within 30 days, the moving company will not accept the claim. How the mover settles the claim depends on the type of insurance the consumer chooses. The bill of lading should specify the type of coverage the consumer had for the move.
Movers must acknowledge the receipt of a claim within 30 days. After receiving the claim, a moving company must decide how to respond within 120 days. The moving company must decide to pay, refuse, or offer a compromise settlement. They must inform the customer in writing of their choice.
If the moving company does not settle within the period allowed, it must tell the customer every 30 days of the status of their claim. The customer has 2 years from the date when the moving company denies the claim. to file a lawsuit.
What Are the Remedies a Person Might Get from a Lawsuit Against a Moving Company?
If the move is an interstate move, then the Carmack Amendment limits the 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.
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.
Another option a person has is to buy their own moving insurance to cover any loss of or damage to their belongings in the course of a 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. If some of a person’s possessions are damaged, destroyed, or lost in the move, the moving company has the choice to do any of the following:
- Repair the item;
- Replace the item;
- Offer a cash settlement with a value of the cost to repair the item;
- Offer a cash settlement with a value of the cost to replace the item.
The cost of full value protection coverage varies by moving company and the value of the deductible that a customer selects;
- Released Value Protection: This coverage is offered at no additional cost but provides only minimal protection. With this coverage, a person receives up to 60 cents per pound for an item that 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. This would also make it more attractive to buy moving insurance. These circumstances may include the following:
- Packing any perishable, dangerous, 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 belongings if they 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, 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 to move, 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. Some moving insurance policies would cover losses caused by the following:
- Natural disasters;
- Mechanical and electrical accidents;
- High-value items
- Damage to pairs or sets.
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 because of poor service or worse from a moving company, you want to talk to an experienced Virginia business attorney. LegalMatch.com can quickly connect you to an attorney in Virginia 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.
