Defending and Avoiding Undercharge
Claims and Suits
In fact, this practice may explain why PFMA has found that the number of undercharges
generally exceeds that of overcharges.
Now with interest rates going up rather than down, however, we are finding a swing from [discrepancies resulting in] just overcharges to undercharges
Reexamine their exposure to future undercharges
due to the difficulty of verifying on a daily basis that every rate has been lawfully filed in their carriers' tariffs (for firms presently dealing with common carriers);
The outcry of shippers after the Maislin decision would not have occurred if shippers had been paying tariff rates all along; estimates of potential outstanding undercharges
run as high as $32 billion.
A carrier that decides to pursue a shipper for undercharges
will lose not only that customer but others, as the fallout from its action discourages customers from using the carrier.
Primary Steel contended that since the parties had negotiated the lower rates in good faith, having to pay the undercharges
would constitute an unreasonable practice that would be in violation of the statute because the filed rates were not "reasonable" within the meaning of the statute.
NBWA) president Ronald Sarasin called last week for a legislative solution to the problem of motor carrier rate undercharge
liability currently facing a number of beer distributors.
Firms presently dealing with common carriers should reexamine their exposure to future undercharges
due to the difficulty of verifying on a daily basis that every rate has been lawfully filed in their carriers' tariffs.
If a store is found to have a three-to-one or greater ratio of overcharges to undercharges
for three consecutive inspections, that store must item price; the item pricing continues until it passes four consecutive inspections.