4. Household Goods Services in General

To better understand the dispute here, it will be helpful to summarize how the Commission regulates household goods service, and a household move is supposed to be conducted. We set forth the summary below.

The Commission regulates household goods carriers under the Household Goods Carriers Act, Sections 5101 et seq. MAX4 contains Commission rules, regulations and rates governing household goods operations. Carriers must apply to the Commission for a license to operate a household goods transportation business. To complete the licensing process, the applicant must show that he/she has the character, technical skill and/or experience to operate the business. The applicant must also show the financial capability of conducting the proposed operations in a safe manner. Before starting operations, an applicant must also show evidence of public liability and property damage insurance, workers compensation insurance and cargo insurance. Evidence of such current insurance coverage must continue to be filed with the Commission.

Household goods carriers are required to implement proscribed highway safety requirements, including preventive equipment maintenance, ongoing driver safety education and training, participation in the pull notice program, and must abide by applicable California Vehicle Code regulations.

Once licensed, the household goods mover is required to adhere to Commission rules and rates in MAX4. The Commission sets a maximum rate for transportation, products and labor charges involved in household goods carriage. The carrier may not exceed these rates.

When contemplating hiring a moving company, customers typically select a mover from classified telephone listings, newspapers, or other local advertising. To explain the carrier's obligations and provide an overview of steps involved in a move, the Commission has prepared a pamphlet entitled, "Important Information For Persons Moving Household Goods (within California)." Licensed carriers are required to provide this pamphlet to potential customers without charge. This pamphlet explains terms commonly used in household goods moves, the steps in a move, cargo insurance options, the basis of deriving charges, how to file a loss or damage claim, payment options, and a list of Commission Offices which can provide assistance. The following information is taken from the Commission's pamphlet.

Numerous carriers may be contacted for estimated rates regarding a move. Each carrier may provide a written estimate. This estimate is binding on the carrier as long as no items are added to the initial list, or no additional services are requested. Oral estimates are not binding. A carrier may not willfully quote or estimate a lower rate or charge knowing the actual rate or charges will be more than the quote or estimate.

After a company is selected, the carrier must complete a written agreement prescribed by the Commission at least three days prior to the move. The agreement specifies the following information regarding the transportation: scheduled time, date and location of items to be moved, maximum charges, auxiliary products and services anticipated to be needed, coverage options for loss and damage of goods transported, how final charges will be paid, where the customer may view a copy of the tariff, whether the customer has received the Commission's information booklet and any waiver of the requirement that a moving agreement is signed three days prior to any move. Customers are generally required by most carriers to pay by cash, money order or certified check at the time of delivery. However, most carriers will make payment arrangements in advance of the initial pick-up. Any payment arrangements must be noted on the written agreement.

The shipment is insured for 60¢ per pound per article and a maximum of $20,000, unless a customer desires additional protection against possible loss or damage. The option called "actual cash value" ensures recovery of the actual or fair market value of any lost or damaged item up to the total value declared. The option called "full value protection" ensures recovery of the full value, which is the replacement value up to the total value declared. In the agreement the carrier will state the rate for the option the customer chooses. If damage occurs, the carrier may choose to replace, reimburse, or repair any damaged item, based upon the protection level chosen.

The date of the move, the carrier takes an inventory of items to be transported, including the condition of each item. While inspecting the items, the customer has the opportunity to comment on the noted condition. The carrier leaves a copy of this inventory with the customer. After the goods are picked up, they are delivered to the location specified in the agreement. Upon arrival, the customer checks the content of the shipment and condition of the goods. The customer describes any loss or damage on the carrier's shipping order and freight bill.

The customer incurring loss or damage may file a claim. The claim must be in writing and filed with either the receiving or delivering carrier, or carrier issuing the shipping document. The claim must be filed within nine months after delivery as shown on the shipping document or within nine months after a reasonable time for delivery. The claim must provide information to identify the shipment, assert liability for the loss or damage, and specify a determinable amount of money sought. The claims must be accompanied by shipping documents and the original or a copy of the paid bill. The claim may include any relevant correspondence.

Upon receipt of a written claim with required documentation, the carrier must acknowledge it in writing within 30 days. The carrier must pay, decline to pay, or make a firm compromise settlement within 60 days after receipt of the claim. Should reasonable delays occur, the carrier must provide to the customer a status report and the reason for the delay, with a copy to the Commission every 30 days until final action is taken. If a carrier fails to respond to a claim, the customer is encouraged to notify the Commission.

The Commission expressly notifies the customer in its information pamphlet that:

"The PUC has no authority to compel carriers to settle claims for loss or damage and will not undertake to determine whether the basis for, or the amount of such claims is proper, nor will it attempt to determine the carrier's liability for such loss or damage. If both you and the carrier consent, the claim may be submitted to an impartial arbitrator for resolution. You may also commence a suit in small claims court or other court of law. If arbitration or civil action result in a decision in your favor and the carrier fails to comply, contact the PUC." (At p. 10)