Carrier and broker payment disputes

Most carrier-broker disputes are contract disputes dressed up as operational disagreements. The broker-carrier agreement — often accepted electronically, rarely read — determines set-off rights, claim deductions, payment timing and where any action must be brought.

You may need a lawyer if…

  • A broker has not paid, or is paying far outside terms
  • Deductions or chargebacks have been applied against your invoices
  • A broker is setting off a cargo claim against unrelated loads
  • You are asked to sign a broker-carrier agreement and want it reviewed
  • A double-brokered load has left you unpaid
  • A broker or shipper has become insolvent owing you money

How we can help

  • Review and negotiation of broker-carrier agreements
  • Demand and recovery of unpaid freight charges
  • Defence and challenge of chargebacks and set-offs
  • Claims against sureties, bonds and, where available, shippers
  • Litigation in Small Claims Court and the Superior Court of Justice
  • Insolvency and priority issues where a broker fails

What happens next

  1. We read the agreement and the load documents before anything else.
  2. We quantify what is owed and what is genuinely in dispute.
  3. We issue a demand that preserves your position.
  4. We negotiate, or we commence proceedings in the correct forum.
  5. We advise on tightening the agreement for future loads.

What to bring

  • The broker-carrier agreement
  • Rate confirmations for the loads in issue
  • Bills of lading and proof of delivery
  • Invoices and the payment history
  • The chargeback or claim documentation

Questions clients commonly ask

Can a broker deduct a cargo claim from unrelated invoices?

Whether set-off is permitted, and on what terms, generally turns on the broker-carrier agreement and the applicable law. A broad set-off clause is common and is often the reason the deduction stands.

What should a carrier look for in a broker-carrier agreement?

Payment terms, set-off and chargeback rights, cargo liability limits and deductibles, insurance requirements, indemnities, forum and governing law, and any anti-back-solicitation clause.

Is it worth pursuing a small unpaid invoice?

Ontario's Small Claims Court handles claims up to its monetary limit and is designed to be proportionate. Whether a claim is worth pursuing depends on the amount, the debtor's solvency and the agreement's forum clause.

This page provides general legal information about Ontario law. It is not legal advice, and reading it does not create a solicitor-client relationship.

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