June 06, 2011 -- By: James D. Duncan
Even though the Florida law regulating the moving and storage industry has been in place for several years, companies are still using contracts that are illegal. The problem stems from an interpretation of the law by the Division of Consumer Services. They determined that since the law states that movers cannot limit their liability to less than 60 cents per pound, the mover could not put exclusionary language in the contract. They consider the following as examples of exclusionary; Company is not responsible for jewelry. Company is not responsible for items packed by owners.
This is creating problems for movers. First, it was never intended that movers would be responsible for items like jewelry. We could be stuck with a claim for an item we did not even know was a part of the move. The same goes for items packed by the owners. Because of this, the Florida Movers and Warehousemen’s Association developed a Bill of Lading / Contract for Service that meets the guidelines set by the State. The solution was to limit our liability to 60 cents per pound on such items even though the shipper declares a value. FMWA is sponsoring legislation that would fix the problem, but to date, it has not passed.
My recommendation is to use the new Florida form. It is available from Milburn Printing at a reasonable cost.
The second issue has to do with Warehouse receipts. If you are using an old form, the provisions must not be consistent with your insurance policy. This is important because you could be liable for damages that your policy won’t cover. According to our Attorney, Heidi Roth, the Bill of Lading / Contract for Service can be used as a warehouse receipt as long as it includes your monthly storage rate. The other benefit of this is that you will only need to order one document. You could than attach your inventories to it.
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