[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Notices]
[Page 52990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25879]


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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration


Regulations Governing the Common Carrier Transportation of 
Household Goods

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice.

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SUMMARY: This document provides notice that the arbitration 
requirements imposed on household goods carriers providing service in 
interstate and foreign commerce by the ICC Termination Act of 1995 
(ICCTA) are in effect with respect to all shipments transported after 
December 31, 1995.

FOR FURTHER INFORMATION CONTACT: Stanley M. Braverman (202) 927-6316, 
or Paul Brennan (202) 366-0834, Office of the Chief Counsel, Federal 
Highway Administration, 400 Seventh St., SW., Washington, DC 20590. 
Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday through 
Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: This document provides notice that the 
arbitration requirements imposed on household goods carriers providing 
service in interstate and foreign commerce by the ICCTA, Pub. L. No. 
104-88, 109 Stat. 803, are in effect with respect to all shipments 
transported after December 31, 1995.
    The ICCTA mandates that, as a condition of registration, a carrier 
providing transportation of household goods must agree to offer 
shippers arbitration as a means of settling disputes regarding loss and 
damage claims, 49 U.S.C. 14708. The arbitration procedural requirements 
are detailed in the ICCTA, and the following is a general overview of 
those requirements as set forth in 49 U.S.C. 14708(b): (1) The 
arbitration offered must be designed to prevent the carrier from having 
special advantage; (2) the carrier must provide notice, before the 
goods are tendered for transport, to the shipper of the availability of 
neutral arbitration, including a summary of the arbitration procedure, 
any applicable costs, and disclosure of the legal effects of election 
to utilize arbitration; (3) upon the shipper's request, the carrier 
must provide forms and information necessary for initiating an action 
to resolve a dispute under arbitration; (4) each person authorized to 
arbitrate must be independent of the parties to the dispute and capable 
of resolving such disputes, and the carrier must ensure that the 
arbitrator is authorized and able to obtain from the carrier or shipper 
any material or relevant information to carry out a fair and 
expeditious decisionmaking process; (5) no shipper may be charged more 
than half the cost for instituting an arbitration and the arbitrator 
may make a determination as to payment of the costs in the arbitration 
decision; (6) the carrier must not require the shipper to agree to 
utilize arbitration before a dispute arises, and arbitration is 
binding, for claims of $1000 or less, if the shipper requests 
arbitration or, for claims of more than $1000, if the shipper requests 
arbitration and the carrier agrees to it; (7) if all parties agree, the 
arbitrator may provide for an oral presentation of a dispute by a party 
or representative of a party; and (8) the arbitrator must render a 
decision within 60 days of receipt of written notification of the 
dispute (that 60-day period may be extended for a reasonable period 
under certain circumstances), and a decision by an arbitrator may 
include any remedies appropriate under the circumstances.
    Because the arbitration requirement is now a condition of 
registration, the registration regulations will be amended to reflect 
that condition. An interim final rule will be published to require each 
applicant seeking authority to transport household goods to certify, as 
a condition of registration, that it agrees to offer, in accordance 
with 49 U.S.C. 14708, its shippers arbitration as a means of settling 
disputes concerning damage or loss to household goods transported and 
that applicant has such a system in place. Failure to implement this 
required arbitration system could result in the suspension or 
revocation of the household goods carrier's registration. Further, by 
this notice, all carriers transporting household goods in interstate 
commerce are advised that arbitration programs must be in place and 
that all loss and damage claims arising from shipments transported 
after December 31, 1995, are subject to the arbitration requirements. 
The information for shippers will be amended to replace the required 
summary of any dispute settlement program with a summary of the 
arbitration procedure.

(23 U.S.C. 315; 49 U.S.C. 14708; 49 CFR 1.48)

    Issued on: September 30, 1996.
Rodney E. Slater,
Federal Highway Administrator.
[FR Doc. 96-25879 Filed 10-8-96; 8:45 am]
BILLING CODE 4910-22-P