5. Factual Background

Based upon the facts presented in this proceeding, described below, Karrison and A&P intended to move Karrison's household goods weighing 4300 pounds from Corte Madera to Novato, where they would be stored until Karrison scheduled delivery to a location in Los Angeles. The moving agreement should have indicated increased protection of the shipment by at least $6,000, due to Karrison's alleged extraordinary value of a bedroom set.

After delivery to storage, Karrison would pay the bill for delivery of the household goods to Novato. Karrison would pay a monthly storage bill. When Karrison was ready, she would enter into a second contract with A&P or another household goods carrier to transport her household goods to Los Angeles. She would pay the bill for delivery of household goods from Novato to the final destination in Los Angeles. However, the record shows that the following unexpected events occurred complicating Karrison's move and causing the present dispute.

A&P was adequately insured, as required, to provide moving services during June 1994 when Karrison hired the company. Prior to the move date, A&P gave Karrison a written estimate of $909.95 to move three bedrooms of household goods, including containers, applicable taxes and standard insurance protection of a maximum of $20,000 for the shipment.

At least three days prior to the move date of June 4, 1994, Karrison completed a written agreement for moving services. The agreement showed the applicable charges and no increased value for the shipment. On June 4, as scheduled, A&P arrived to pick up 4300 pounds of household goods. A&P completed an inventory form as it loaded household goods into three vaults. While loading, A&P dropped a bedroom vanity which broke into three pieces. Karrison was alarmed when the movers loaded the broken pieces into a vault. She thought the employees were attempting to hide the damage. She called the company's main office to inquire what should be done, and verified with the Commission by a second telephone call that the furniture should be transported to storage, as contracted. However, she insisted that the vanity be unloaded so that she could take pictures. The mover noted on the written inventory that the vanity had been broken. He left Karrison a copy of this inventory with the bill of lading.

The furniture was transported to Novato and placed in storage at A&P's facility. Karrison was under the impression due to her telephone conversation with A&P's office that it would timely inspect the damage and file an insurance claim. Eventually, Karrison wrote a letter to A&P. It appears that A&P had decided not to immediately file an insurance claim, but chose the allowable option of repairing the furniture. However, Karrison was unaware of this decision, thinking the delay was due to A&P's inspecting the broken item. Karrison alleges she attempted to find out if a claim was filed. In the meantime, A&P began to request that the transportation bill be paid.

Ultimately, in August, when Karrison received the storage forms to complete, she disputed the amount alleged as the value of the shipment. Karrison indicated she intended to declare an extraordinary value of $6,000 for an heirloom bedroom set and placed a note to this effect on the warehouse contract. A&P argued that Karrison did not follow the proper procedures to make this valuation and contended that individual items could not be valued under Commission regulation, only the entire shipment.

On September 2, 1994, Karrison wrote to A&P inquiring about the status of their investigation and the damage claim. A&P responded by telephone indicating it rejected Karrison's intended valuation, explaining the damage was documented at the time it occurred, the process by which the damage will be inspected after goods are delivered to final destination, and she could file a formal insurance claim. A&P indicated it had complied with Karrison's request to immediately inspect the furniture. At that time, the repairman had indicated he could repair the broken vanity. A&P requested that Karrison inspect the repairs when completed. A&P placed Karrison on notice that it could not honor any claim until her bill was paid. A&P admonished Karrison that if she refused to pay, or did not keep current the monthly storage payments, it will have no choice but to place a lien on the shipment and proceed with auction procedures. (On November 14, 1994, Karrison paid $300 on the bill of $909.95.)

Ultimately, Karrison filed this formal complaint in March 1995 requesting an order from the Commission to stop a scheduled auction of her household goods. At the PHC, she promised to pay the remainder of the bill by a date in August set by the presiding ALJ. However, A&P had already scheduled the auction for July. A&P attempted to reschedule the auction after the PHC, however, Karrison refused to waive notice of the second date so that the auction could be rescheduled. Therefore, A&P proceeded with the auction as scheduled in July. The household goods were sold for $436 and this amount applied to the bill. The outstanding balance was written off as an uncollectible debt.

Karrison now completes the pursuit of the Commission complaint after exhausting her remedies in civil court and the Department of Insurance.