Continuing in our series of “The Devil is in the Details,” our friends at The Transportation and Logistics Council have identified provisions in the UPS Terms and Conditions of Service that apparently violate federal statutes regarding time limits for filing of claims.
The UPS Service Guide, published on September 23, 2019 creates the following provision, Time Limit for Notice and Filing of Claims for Loss or Damage to Property. In that provision, UPS states that “as a condition precedent to recovery, all claims for loss or damage to property must be noticed and filed in writing or electronically within the following time limits“
UPS then states that for Domestic shipments, including shipments to and from Puerto Rico, UPS must receive a notice of claims within 60 days after delivery of the package, or in the case of non-delivery within 60 days after the scheduled delivery date. This provision goes on to state that claims must be filed within 9 months after delivery.
The inference here is that if a shipper does not file a notice of claim within the 60 day timeframe, their claim will be disallowed.
Under provisions of the Carmack Amendment, 49 USC 14706 (e), “a carrier may not provide by rule, contract or otherwise, a period of less than 9 months for filing a claim against it under this section.”
According to the legal experts at the Transportation and Logistics Council, “while these UPS provisions are arguably illegal, shippers should be aware of them and not accept a UPS declination of claim based on these provisions.”
If you would like more information regarding these claim provisions and how they may affect your business, please contact The Transportation and Logistics Council at 631 549-8984 or at www.TLCouncil.org.
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