                                 CODE OF VIRGINIA

ADJUSTMENT OF CLAIMS AGAINST CARRIERS (§ 56-123)

Every claim against a common carrier doing business in the Commonwealth for loss
or damage to property while in its possession, and every claim for storage,
demurrage and car service against such carrier under the rules and regulations
prescribed by the State Corporation Commission, shall be adjusted and paid
within 60 days in case of shipments wholly within the Commonwealth, and within
90 days in case of interstate shipment, and within 60 days in case of claims for
demurrage or car service after the filing of such claim with the agent of such
carrier at the point of destination of such shipment or with the claims
department of such common carrier. No such claims shall be filed until after the
arrival of shipment or some part thereof at the point of destination or until
after the lapse of a reasonable time for the arrival thereof, when such claim is
for loss or damage to freight. In every case such carrier shall be liable for
the amount of such loss or damage to freight, or such penalty as is prescribed
for failure to comply with the rules and regulations of the Commission, relating
to storage, demurrage, and car service, together with interest thereon from the
date of the filing of the claim therefor, until the payment thereof. Failure to
adjust and pay such claim within the periods herein respectively prescribed
shall subject such common carrier so failing to a penalty of $25 for each and
every such failure, to be recovered by such claimant so aggrieved in the same
action or proceedings in any court having jurisdiction in the Commonwealth;
provided, that unless such claimant recover in such action the full amount
claimed by him no penalty shall be recovered, but only the actual amount of the
loss or damage to freight, or amount due for storage, demurrage or car service,
with interest as aforesaid; and, provided further, that if in such action or
proceedings such claim shall be found to be fraudulent the claimant shall pay to
the carrier a penalty of $25, to be recovered along with the costs. If after
such periods above prescribed, the carrier shall voluntarily pay the full amount
so claimed, then such penalty alone may be recovered as aforesaid by the
claimant.

HISTORY: 1918, p. 467; 1922, p. 420; Michie Code 1942, § 3928a; 2005, c. 839.