Breach of Contract and Unjust Enrichment Claims

A breach of contract occurs when a broker or shipper fails to pay the agreed freight charges after the carrier has fulfilled its delivery obligations. In such cases, our transportation lawyer can sue on behalf of the carrier for the full amount of the freight invoices, plus interest and legal fees.

If no formal contract exists, carriers may rely on unjust enrichment principles. Under Ontario law, when a party benefits from freight services without payment, the courts may order compensation to prevent unfair gain. These claims often arise when load brokers or shippers attempt to avoid paying carriers despite having received delivery.

Expanding Liability Under Bills of Lading

The bill of lading is the core document governing carriage of goods and freight charges. Under the Lading Act and related transportation law, carriers may claim payment not only from the broker but also from shippers or consignees, depending on how the bill of lading is drafted.

Our firm examines the bill of lading and Lading Act provisions to determine which parties involved may be held liable for the debt. This analysis is essential in interprovincial trucking, where federal law and provincial law intersect. We ensure that all potential parties who benefited from the shipment are held accountable for the payment owed.

Using Agency Law to Recover from Upstream Parties

Load brokers often act as intermediaries between shippers and carriers. When brokers fail to pay, agency law may allow carriers to collect freight charges from the shipper or consignee directly. The courts recognize that brokers act as agents in many transactions, and liability can extend to the principal if the broker defaults.

By leveraging agency principles, our lawyers pursue payment from upstream parties who ultimately control the business transaction, ensuring that carriers are not left without recourse.

Enforcing Carrier Liens

Carriers have a statutory lien over goods under the Bills of Lading Act and Highway Traffic Act. This right allows a carrier to retain possession of goods until freight charges are paid. When properly exercised, carrier liens can be a powerful legal tool to secure payment without lengthy litigation.

Our firm assists in filing and enforcing carrier liens, ensuring compliance with law and contractual obligations. Where necessary, we represent clients in Small Claims Court or Superior Court to enforce the lien and recover the freight charges.

Trust Claims and Director Liability

In some cases, load brokers may hold freight payments in trust accounts for carriers. If they misuse these funds, trust claims can be made to recover payment directly from the trust account or even against corporate directors personally. Ontario law permits liability to extend to those who authorize or knowingly permit breaches of trust.

Our litigation team regularly handles trust fund disputes and director liability cases, helping carriers collect the money owed and ensure that brokers cannot simply avoid paying by dissolving their business or transferring assets.

How Our Freight Collections Lawyers Assist

From filing claims to enforcing judgements, our freight collections lawyers provide comprehensive legal services for carriers, freight forwarders, and load brokers operating in Ontario and across Canada. We assist with:

• Reviewing contracts and invoices for enforceability;
• Preparing and filing Small Claims Court actions;
• Enforcing carrier liens;
• Negotiating payment settlements; and
• Advising on transportation law compliance and federal court procedures.

Our professional approach ensures that clients receive effective representation and the best chance of recovering their freight charges promptly.

Why Work With Our Litigation Team

Located in Downtown Toronto, our firm combines in-depth knowledge of transportation, commercial law, and litigation strategy. We understand how business realities intersect with legal obligations, and we tailor our approach to preserve your cash flow and recover the freight payments you’re owed.

We focus on cost-effective recovery methods, ensuring legal fees remain reasonable while achieving the best possible outcome for our clients.

Frequently Asked Questions

What should I do if a broker refuses to pay for completed shipments?

If a broker refuses to pay, first gather all relevant freight invoices, bills of lading, and contracts. You may send a formal demand letter, then file a Small Claims Court or Superior Court claim if the issue remains unresolved. Our lawyers can assist in enforcing your rights and recovering the freight charges owed.

How long do I have to enforce a carrier lien in Ontario?

Under the Bills of Lading Act, carrier liens should be enforced promptly. Delays can weaken your claim or affect your right to retain goods. Our legal services ensure liens are exercised correctly and filed within statutory limits.

Can I pursue a consignee if there’s no contract between us?

Yes. Even without a contract, Ontario law may allow carriers to pursue payment from a consignee under the Lading Act or agency principles, especially where the consignee accepted delivery and benefited from the freight services.

What documents help prove my unpaid freight claim?

Key documents include the bill of lading, freight invoices, contracts, proof of delivery, and any communications with the broker or shipper. These materials are essential to determine the scope of liability and the full amount of payment owed.