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Disputes: A Golden Opportunity?

Tips on responding when a deal goes bad
Trading Assistance

It is, of course, not necessary to know these topics cold. In fact, knowing all the details of all these issues may suggest you’ve been involved in way too many claims. What’s more, especially when first discussing the problem, leaving open the possibility that you don’t know it all, shows an open mindedness that may help set a constructive tone.

Effectively handling claims at times means stepping back and brushing up on a particular topic, while allowing the other parties time to do the same. Blue Book, PACA, and DRC all have staff available to help you work through routine trading and transportation problems.

Additionally, each of these organizations publishes reference and educational material on their websites that can be helpful whether you are new to the industry or a seasoned veteran. Blue Book’s Trading and Transportation Guidelines will be published in hard copy soon for the first time in several years.

Agreeing to Disagree
But what if the parties simply cannot agree? Even with good intentions and a high degree of professionalism on both sides, agreement is not always possible even with the help of a mediator from Blue Book, PACA, or DRC.

In these cases, preferably before patience wears thin, it may make sense for the parties to step back and agree to let a judge (usually an administrative judge under PACA) or an arbitrator resolve the matter. Although traditional litigation is inherently contentious—it’s too much of an expense to be otherwise—produce industry firms have the advantage of several low-cost ways to resolve disputes in a binding manner without the strain of a lawsuit.

At Blue Book, we see highly contenti-ous arbitrations where the parties will “never again” do business together. But we also see arbitrations between firms that continue to do business with one another, and are simply looking for a way to put a troubled transaction to bed. The tone of these arbitrations is respectful and professional, and the matter gets resolved efficiently—there are no depositions, juries, or attorneys. The same can be said for arbitrations conducted by DRC and formal complaints before PACA.

So, how do you approach trouble loads? And what does your approach say about you and your company? Your next trouble load is a golden opportunity—of sorts.

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Doug Nelson is vice president of the Special Services department at Blue Book Services. Nelson previously worked as an investigator for the U.S. Department of Agriculture and as an attorney specializing in commercial litigation.