Originally published at: New lawsuit alleges R&R, RFX failed to pay $264K in freight invoices - FreightWaves
A Texas lawsuit filed by Jimenez Logistics alleges R&R Express and RFX failed to pay $264K in freight invoices.
“Jimenez Logistics arranged and prepaid motor carriers for shipments at the request of R&R Express and RFX, relying on representations that invoices would be paid. The complaint alleges invoices totaling approximately $264,650 remain unpaid.”
OK. R&R/RFX as a carrier can NOT give freight to a broker. They as a broker, can not give it to a broker. This is illegal and is a violation of broker authority.
It sounds like both companies knew or at the least, SHOULD have known that what they were doing was illegal.
This is a MAJOR problem in the trucking industry and the reason that I say that all brokers that are not following the laws and rules should be suspended and or revoked. No waivers are legal. This is a mess. If I were the judge and it were in my power, I would no money exchanges between these two companies for their illegal operations BUT, if there were any unpaid carriers, I would order them paid immediately by the shippers. These shippers have ti understand the huge risks that they take when they use brokers instead of carriers.