---
kind: "section"
citation: "49 U.S.C. § 13709"
title: "49"
title_heading: "Transportation"
number: "13709"
heading: "Procedures for resolving claims involving unfiled, negotiated transportation rates"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/13709"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part B — Motor Carriers, Water Carriers, Brokers, and Freight Forwarders"
  - "Chapter 137 — Rates and Through Routes"
---

# §13709. Procedures for resolving claims involving unfiled, negotiated transportation rates

- (a) **Transportation Provided at Rates Other Than Legal Tariff Rates.—**
  - (1) **In general.—** When a claim is made by a [motor carrier](/usc/49/13102.md?p=14) of property (other than a [household goods](/usc/49/13102.md?p=10) [carrier](/usc/49/13102.md?p=3)) providing [transportation](/usc/49/10102.md?p=9) subject to jurisdiction under subchapter II of [chapter 105](/usc/49/chstIV/ptA/ch105.md) (as in effect on December 31, 1995) or subchapter I of [chapter 135](/usc/49/chstIV/ptB/ch135.md), by a [freight forwarder](/usc/49/13102.md?p=8) (other than a [household goods freight forwarder](/usc/49/13102.md?p=11)), or by a party representing such a [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) regarding the collection of [rates](/usc/49/10102.md?p=7) or charges for such [transportation](/usc/49/10102.md?p=9) in addition to those originally billed and collected by the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) for such [transportation](/usc/49/10102.md?p=9), the [person](/usc/49/13102.md?p=18) against whom the claim is made may elect to satisfy the claim under the provisions of subsection [(b)](#b), [(c)](#c), or [(d)](#d), upon showing that—
    - (A) the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) is no longer transporting property or is transporting property for the purpose of avoiding the application of this section; and
    - (B) with respect to the claim—
      - (i) the [person](/usc/49/13102.md?p=18) was offered a [transportation](/usc/49/10102.md?p=9) [rate](/usc/49/10102.md?p=7) by the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) other than that legally on file at the time with the [Board](/usc/49/10102.md?p=1) or with the Interstate Commerce Commission, as required, for the [transportation](/usc/49/10102.md?p=9) service;
      - (ii) the [person](/usc/49/13102.md?p=18) tendered freight to the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) in reasonable reliance upon the offered [transportation](/usc/49/10102.md?p=9) [rate](/usc/49/10102.md?p=7);
      - (iii) the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) did not properly or timely file with the [Board](/usc/49/10102.md?p=1) or with the Interstate Commerce Commission, as required, a tariff providing for such [transportation](/usc/49/10102.md?p=9) [rate](/usc/49/10102.md?p=7) or failed to enter into an agreement for [contract carriage](/usc/49/13102.md?p=4);
      - (iv) such [transportation](/usc/49/10102.md?p=9) [rate](/usc/49/10102.md?p=7) was billed and collected by the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8); and
      - (v) the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) demands additional payment of a higher [rate](/usc/49/10102.md?p=7) filed in a tariff.
  - (2) **Forum.—** If there is a dispute as to the showing under [paragraph (1)(A)](#a-1-A), such dispute shall be resolved by the court in which the claim is brought. If there is a dispute as to the showing under [paragraph (1)(B)](#a-1-B), such dispute shall be resolved by the [Board](/usc/49/10102.md?p=1). Pending the resolution of any such dispute, the [person](/usc/49/13102.md?p=18) shall not have to pay any additional compensation to the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8).
  - (3) **Effect of satisfaction of claims.—** Satisfaction of the claim under subsection [(b)](#b), [(c)](#c), or [(d)](#d) shall be binding on the parties, and the parties shall not be subject to [chapter 119](/usc/49/chstIV/ptA/ch119.md) of this title, as such chapter was in effect on December 31, 1995, or chapter 149.
- (b) **Claims Involving Shipments Weighing 10,000 Pounds or Less.—** A [person](/usc/49/13102.md?p=18) from whom the additional legally applicable and effective tariff [rate](/usc/49/10102.md?p=7) or charges are sought may elect to satisfy the claim if the shipments each weighed 10,000 pounds or less, by payment of 20 percent of the difference between the [carrier](/usc/49/13102.md?p=3)’s applicable and effective tariff [rate](/usc/49/10102.md?p=7) and the [rate](/usc/49/10102.md?p=7) originally billed and paid. In the event that a dispute arises as to the [rate](/usc/49/10102.md?p=7) that was legally applicable to the shipment, such dispute shall be resolved by the [Board](/usc/49/10102.md?p=1).
- (c) **Claims Involving Shipments Weighing More Than 10,000 Pounds.—** A [person](/usc/49/13102.md?p=18) from whom the additional legally applicable and effective tariff [rate](/usc/49/10102.md?p=7) or charges are sought may elect to satisfy the claim if the shipments each weighed more than 10,000 pounds, by payment of 15 percent of the difference between the [carrier](/usc/49/13102.md?p=3)’s applicable and effective tariff [rate](/usc/49/10102.md?p=7) and the [rate](/usc/49/10102.md?p=7) originally billed and paid. In the event that a dispute arises as to the [rate](/usc/49/10102.md?p=7) that was legally applicable to the shipment, such dispute shall be resolved by the [Board](/usc/49/10102.md?p=1).
- (d) **Claims Involving Public Warehousemen.—** Notwithstanding subsections [(b)](#b) and [(c)](#c), a [person](/usc/49/13102.md?p=18) from whom the additional legally applicable and effective tariff [rate](/usc/49/10102.md?p=7) or charges are sought may elect to satisfy the claim by payment of 5 percent of the difference between the [carrier](/usc/49/13102.md?p=3)’s applicable and effective tariff [rate](/usc/49/10102.md?p=7) and the [rate](/usc/49/10102.md?p=7) originally billed and paid if such [person](/usc/49/13102.md?p=18) is a public warehouseman. In the event that a dispute arises as to the [rate](/usc/49/10102.md?p=7) that was legally applicable to the shipment, such dispute shall be resolved by the [Board](/usc/49/10102.md?p=1).
- (e) **Effects of Election.—** When a [person](/usc/49/13102.md?p=18) from whom additional legally applicable freight [rates](/usc/49/10102.md?p=7) or charges are sought does not elect to use the provisions of subsection [(b)](#b), [(c)](#c) or [(d)](#d), the [person](/usc/49/13102.md?p=18) may pursue all rights and remedies existing under this part or, for [transportation](/usc/49/10102.md?p=9) provided before January 1, 1996, all rights and remedies that existed under this title on December 31, 1995.
- (f) **Stay of Additional Compensation.—** When a [person](/usc/49/13102.md?p=18) proceeds under this section to challenge the reasonableness of the legally applicable freight [rate](/usc/49/10102.md?p=7) or charges being claimed by a [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) in addition to those already billed and collected, the [person](/usc/49/13102.md?p=18) shall not have to pay any additional compensation to the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) until the [Board](/usc/49/10102.md?p=1) has made a determination as to the reasonableness of the challenged [rate](/usc/49/10102.md?p=7) as applied to the freight of the [person](/usc/49/13102.md?p=18) against whom the claim is made.
- (g) **Notification of Election.—**
  - (1) **General rule.—** A [person](/usc/49/13102.md?p=18) must notify the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) as to its election to proceed under subsection [(b)](#b), [(c)](#c), or [(d)](#d). Except as provided in paragraphs [(2)](#g-2), [(3)](#g-3), and [(4)](#g-4), such election may be made at any time.
  - (2) **Demands for payment initially made after december 3, 1993.—** If the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) or party representing such [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) initially demands the payment of additional freight charges after December 3, 1993, and notifies the [person](/usc/49/13102.md?p=18) from whom additional freight charges are sought of the provisions of subsections [(a)](#a) through [(f)](#f) at the time of the making of such initial demand, the election must be made not later than the later of—
    - (A) the 60th day following the filing of an answer to a suit for the collection of such additional legally applicable freight [rate](/usc/49/10102.md?p=7) or charges, or
    - (B) March 5, 1994.
  - (3) **Pending suits for collection made before december 4, 1993.—** If the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) or party representing such [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) has filed, before December 4, 1993, a suit for the collection of additional freight charges and notifies the [person](/usc/49/13102.md?p=18) from whom additional freight charges are sought of the provisions of subsections [(a)](#a) through [(f)](#f), the election must be made not later than the 90th day following the date on which such notification is received.
  - (4) **Demands for payment made before december 4, 1993.—** If the [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) or party representing such [carrier](/usc/49/13102.md?p=3) or [freight forwarder](/usc/49/13102.md?p=8) has demanded the payment of additional freight charges, and has not filed a suit for the collection of such additional freight charges, before December 4, 1993, and notifies the [person](/usc/49/13102.md?p=18) from whom additional freight charges are sought of the provisions of subsections [(a)](#a) through [(f)](#f), the election must be made not later than the later of—
    - (A) the 60th day following the filing of an answer to a suit for the collection of such additional legally applicable freight [rate](/usc/49/10102.md?p=7) or charges, or
    - (B) March 5, 1994.
- (h) **Claims Involving Small-Business Concerns, Charitable Organizations, and Re­cyclable Materials.—**
  - (1) **In general.—** Notwithstanding subsections [(b)](#b), [(c)](#c), and [(d)](#d), a [person](/usc/49/13102.md?p=18) from whom the additional legally applicable and effective tariff [rate](/usc/49/10102.md?p=7) or charges are sought shall not be liable for the difference between the [carrier](/usc/49/13102.md?p=3)’s applicable and effective tariff [rate](/usc/49/10102.md?p=7) and the [rate](/usc/49/10102.md?p=7) originally billed and paid—
    - (A) if such [person](/usc/49/13102.md?p=18) qualifies as a small-business concern under the Small Business Act ([15 U.S.C. 631](/usc/15/631.md) et seq.),
    - (B) if such [person](/usc/49/13102.md?p=18) is an organization which is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under [section 501(a)](/usc/49/501.md?p=a) of such Code, or
    - (C) if the cargo involved in the claim is recyclable materials.
  - (2) **Recyclable materials defined.—** In this subsection, the term “recyclable materials” means waste products for recycling or reuse in the furtherance of recognized pollution [control](/usc/49/13102.md?p=5) programs.

## Source credit

(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 874; amended Pub. L. 104–287, § 5(29), Oct. 11, 1996, 110 Stat. 3391.)

## Notes

### Historical and Revision Notes

### Pub. L. 104–287, § 5(29)(A)

This amends 49:13709(a)(1) and (3) for clarity and consistency.

### Pub. L. 104–287, § 5(29)(B)

This amends 49:13709(e) by setting out the effective date for 49:13709 and for clarity and consistency.

### Editorial Notes

### References in Text

Subchapter II of chapter 105, referred to in subsec. (a)(1), was omitted in the general amendment of this subtitle by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, effective Jan. 1, 1996.

Chapter 119, referred to in subsec. (a)(3), was omitted and a new chapter 119 enacted in the general amendment of this subtitle by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, 849, effective Jan. 1, 1996.

The Small Business Act, referred to in subsec. (h)(1)(A), is Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§ 631 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Tables.

Section 501 of the Internal Revenue Code of 1986, referred to in subsec. (h)(1)(B), is classified to section 501 of Title 26, Internal Revenue Code.

### Prior Provisions

Provisions similar to those in this section were contained in section 10701 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

### Amendments

1996—Subsec. (a)(1), (3). Pub. L. 104–287, § 5(29)(A), substituted “December 31, 1995” for “the day before the effective date of this section”.

Subsec. (e). Pub. L. 104–287, § 5(29)(B), substituted “January 1, 1996” for “the effective date of this section” and “December 31, 1995” for “the day before such effective date”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

### Abolition of Interstate Commerce Commission

Interstate Commerce Commission abolished by section 101 of Pub. L. 104–88, set out as a note under section 1301 of this title.