How can an indirect air carrier pay my full loss?

Question

I used an air carrier to ship a package overseas valued at $1400 . It was reported lost 5 days later. The carrier only wanted to pay me 300 bucks, 'cuz I hadn't purchased their insurace. I said that's not fair, since they had never informed me verbally or in written form about the insurance policy or the indemnity policy in absence of the insurance.They even didn't bother to send me a copy of the airway bill or contract to sign. Do I have any legal ground to claim full compensation for my loss. Does filing complaints to BBB,or the small claim court help? Are there any other options out there to recover my loss? Thanks!!!

Answer 1

It's lawyer time.  Talk to your lawyer (if you don't have one call the local bar association) because this is a tricky issue.  Also check with your insurance agent to see if you are covered for this loss through your own policies.

Your alternatives are:

1.  Take the loss and hope the package turns up.

      I know this isn't very appealing, but you must consider it.

2.  Get a "lawyer letter" threatening legal action (which you don't intend to take)

     This shouldn't be too expensive and may swing things in your favor.  It depends on the compensation arrangement between the air carrier and their attorneys.  If their lawyers are on their own payroll they will probably be prepared to fight.  If they are using an outside law firm on an annual retainer which includes court appearances they will fight.  If they are using an outside firm and pay for court appearances they will probably pay you, since that is cheaper than going to court.

3.  Sue them court

The big problem with going to court is how much it will cost you to fight the carrier.  

So before you decide to fight look at your chances of winning.  Unless the court decisions in your state have been in the shipper's favor in similar cases you are probably fighting a losing battle.

If your lawyer says it it will cost more than you can expect to win don't sue.

4. Go to small claims court

    I don't know what the limit is and what the rules are for small claims courts in your state.  Check it out.  

    One potential problem with both alternatives 3 and 4 (depending on your state) is that you can wind up with a judgement in your favor and no practical way of collecting.

   If it were me I would go the "lawyer letter" route.  It shows you are serious, that you have contacted an attorney, that you are prepared to fight and that you feel you have a good chance to win.

Hope this helps

Jerry-the-bookkeeper