Moving dispute arbitration: how it works when a mover denies your claim

If your mover lowballs or denies your claim for broken or missing things, or bills you for extra charges after delivery that you don't think you owe, you don't have to choose between giving up and hiring a lawyer. Federal law requires every interstate household goods mover to offer you neutral arbitration for those disputes. Here's what that program has to look like, in plain terms.

What arbitration covers

The required program covers two kinds of disputes between you and an interstate mover:

• Loss of or damage to your household goods.
• Whether you have to pay carrier charges on top of what was collected at delivery.

Arbitration is usually the step after a claim. First you file a written claim with the mover; our guide on filing a complaint or claim against a mover walks through that. If the mover's answer isn't acceptable, arbitration is how you take the dispute to someone independent.

You should be told about it before you sign

Before you sign the bill of lading, the mover must give you notice that neutral arbitration is available. That notice has to include a summary of the procedure, any costs, and what it legally means to choose arbitration. The mover also has to produce a concise, easy-to-read, accurate summary of its program. It's one of the papers that should come with your estimate, so check your paperwork for it before you need it.

If you ask, the mover must give you the information and forms you need to start an arbitration.

The mover can't make you agree in advance

A mover isn't allowed to require you to agree to arbitration before a dispute exists. You decide whether to use it once there's actually something to dispute.

When the decision is binding

• Claims of $10,000 or less: if you request arbitration, it's binding on both you and the mover. The mover can't refuse.
• Claims over $10,000: if you request arbitration, it's binding only if the mover also agrees to it.

Binding means you're both bound by the result, so read the mover's summary of the legal effects before you file.

Who decides, and how

• The arbitrator must be independent of both you and the mover, and able to resolve the dispute fairly.
• The arbitrator must be able to get relevant information from either side.
• The program has to be designed so the mover doesn't get a special advantage when you live or do business far from the mover's offices.
• An oral presentation, where a party argues the dispute in person or through a representative, happens only if all parties agree to it.

What it costs

You can't be charged more than half of the total cost of starting the arbitration. In the decision, the arbitrator can decide who pays the cost, or what share each side pays, including the cost of starting the case.

How long it takes, and what you can get

The arbitrator must issue a decision within 60 days of receiving written notice of the dispute. That deadline can be extended for a reasonable time if either side is slow to provide information the arbitrator reasonably needs. A decision can include whatever remedy fits the situation. The federal statute lists examples: repair, replacement, refund, reimbursement for expenses, compensation for damages, and an order to pay additional carrier charges. That last one is a reminder that arbitration can go the mover's way too.

If you end up in court instead

The statute also gives shippers a lever on attorney's fees. In a court case against the mover over your household goods move, you're awarded reasonable attorney's fees if all of these are true:

1. You submitted your claim to the mover within 120 days after delivery, or after the scheduled delivery date if that's later.
2. You win in court.
3. And at least one of these happened: the mover didn't tell you during the claim process that a dispute settlement program was available; an arbitration decision wasn't issued within the 60-day deadline (or its extension); or you're going to court to enforce an arbitration decision the mover didn't carry out in time.

A mover can get attorney's fees from you only if a court finds you brought the case in bad faith after arbitration was resolved, or after you started arbitration but before the decision came out.

One detail worth knowing: the statute says these arbitration provisions apply to collect-on-delivery shipments, meaning moves where you pay at delivery.

A quick checklist

1. Find the arbitration summary in your move paperwork. If you never got one, note that in writing.
2. File your written claim with the mover first, and if you can, within 120 days of delivery.
3. If the claim is denied or lowballed, ask the mover in writing for its arbitration forms.
4. Check whether your claim is $10,000 or less, since that decides whether the mover must accept a binding decision.
5. Keep copies of everything: the estimate, bill of lading, inventory, photos, your claim, and the mover's replies.
6. Watch the 60-day decision clock once the arbitrator has your written notice.