Trucking: PAYMENT, cod fee, consignor

Question
QUESTION: Hi,
I have an unpaid bill of lading and the broker I got the shipment from disappeared. If Section 7 is marked prepaid, can I still try to collect from the shipper or consignee?
Chau

ANSWER: Hello Chau and thanks for the question.  I'm at a little bit of a loss since the Bills of Lading that I use are not numbered as such.  I would assume you're referring to the COD Fee section of the BoL.  If my guess is correct and you're talking about the box checked as "Freight Charges Prepaid", that may be tough one to collect.  You could present it to the broker's bond holder, but I wouldn't be optimistic that they would pay.  I'm sorry I can't be more optimistic, but that's how I'd see it based on the information you've presented.  I do wish you the best of success and it won't cost anything to try.
Thanks again and good luck //  Don
SEMO Motor Transport Service

---------- FOLLOW-UP ----------

QUESTION: Hi Don -- Thanks for getting back to me so quickly. This is what was written on the bill of lading:
"SUBJECT TO SECTION 7: If the shipment is delivered tot he consignee w/o recourse on the consignor, the consignor shall sign the following statement.  The carrier shall not make delivery of the shipment w/o payment of freight and all other lawful charges."
Does that mean the consignor/shipper, has no responsibility for payment of freight charges after it has been delivered??
Please advise.
Chau

Answer
Hi Chau...  I apologize for not getting back to you more quickly, but I wanted to consult with an attorney (my son) in the transportation industry before I attempted to answer your question.  This is my opinion, but please don't misconstrue it as legal advice.  

In legal terminology, "recourse" is The right of an individual who is holding a commercial paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment.  

So the other side of the coin, "recourse" is the right of the holder to recover against a prior endorser, who is secondarily liable.

When a check, or in this case the bill of lading, is endorsed "without recourse" to the consignor/shipper, it signifies that the endorser will not be liable to pay in the event that other payment is refused.  So the consignor/shipper is relieved of any liability to pay.  

Based on those definitions and the wording used on the bill of lading, I'm afraid that it does mean that the consignor/shipper is off the hook and can't be held responsible for payment after the shipment was delivered.  I have seen this before, but never really had analyzed the full ramification of it.

I'm sorry for taking the long way around to give you an opinion that wasn't the one you would have preferred.  But when it comes to money owed to a carrier, I want to be as accurate and as certain as I can be.

Thanks again and I do hope this has helped, even though I wish the final answer could have been more in your favor.

....Don
SEMO Motor Transport Service