Legal Question in Credit and Debt Law in California
Bill of Lading
I shipped out furniture to another state using a moving company I located on the internet. This moving company/general contractor (GC hereinafter) then contracts the actual ''driving'' portion of the work to another company/subcontractor (SC hereinafter). Nearly five months after shipment, I receive a phone call from the SC stating they never received payment from the moving GC. I paid the GC in full using my credit card a few months ago, but the SC states that I am nonetheless liable to pay the amount if the GC fails to pay. The SC referenced my liabilities as cited under the bill of lading.
I reviewed all of the documents that I signed and none said that I would be liable for any type of damages based on a company's default. The only reference to bill of lading in the contract with the GC I signed says ''A shipment is all terms ... under one bill of lading ... included in the shipment.''
Do I have any liabilities for problems that arise between the two merchants? I really want to avoid any additional harassing phone calls from the SC requesting payment, but I would also like to give them a ''legal'' reason for I am not liable and, hence, why I should not have to make payment twice.
Thank you in advance for your response.
2 Answers from Attorneys
Re: Bill of Lading
Sounds to me like you have no liability. In order for someone to claim you owe them money under a contract, you have to be a party to that contract. As you were not a party to the contract between the GC and SC you owe no liability to the SC. As a matter of fact, it is a violation of the California Fair Debt Collection Practices Act for them to harass you by claiming that you owe them money when you do not. I am assuming you currently live in California--if not, disregard everything and I cannot help you. If you would like me to get them off your back, feel free to contact me.
Re: Bill of Lading
You have no "privity" to the third party and, therefore, owe him no obligation whatsoever. What the language you quoted, ''A shipment is all terms ... under one bill of lading ... included in the shipment.'' means is anybodies guess. It, is so ambiguous, it can't mean you owe the third party an obligation.