(a) All common carriers operating in this state are required to settle all claims for lost or damaged freight and overcharges on freight for which they are liable within a reasonable time, to wit:

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Terms Used In Tennessee Code 65-20-103

  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1) Freight lost or damaged and overcharges on freight between two (2) given points on same line or system shall be paid within sixty (60) days from the filing of written notice with the agent of the company at the point of destination of the freight of the loss or damage thereof; and
(2) Where freight is handled by two (2) or more carriers, roads or systems of roads, and the same is lost or damaged or an overcharge made, such claim shall be paid within ninety (90) days from the filing of written notice with the agent of the railroad company at the point of shipment or destination of the freight, by the consignor or consignee, of the loss or damage thereof or overcharge thereon;

provided, that this section shall only apply to claims against such common carriers where the amount claimed is fifty dollars ($50.00) or less.

(b) Persons engaged as common carriers, in all cases where they fail to pay the claim mentioned in subsection (a) within sixty (60) or ninety (90) days, as the case may be, after notice filed as specified in subsection (a), shall be required to pay the owner of the freight, in addition to the loss and interest thereon, twenty-five percent (25%) of the amount recovered for the loss; provided, that the penalty shall not apply when it shall appear to the court trying the case that the common carrier has tendered within the time specified to the claimant an amount of money sufficient to cover the loss for which the common carrier is held to be liable.
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