SECTION 218.62. Mediation by the Department

(a) The claimant may make a written request to the department for mediation.

(b) The claimant must attempt to resolve the claim with the household goods carrier by making a reasonable effort to follow the household goods carrier's claim process before requesting mediation by the department.

(c) Requests for mediation must be made within 30 days (excluding Sundays and nationally recognized holidays) after the earliest of the following events:

(1) any portion of the claim is denied by the carrier;

(2) the carrier makes a firm settlement offer that is not acceptable to the claimant; or

(3) 90 days has elapsed since the carrier received the claim and the carrier has not responded to the claimant as prescribed in §218.61(b)(2) of this title (relating to Claims).

(d) Except as provided in subsection (e) of this section, the department will deny a request for mediation made more than 120 days (excluding Sundays and nationally recognized holidays) after the carrier received the claim. Additionally, the department will deny a request for mediation if the carrier did not receive the claim within 90 days after the delivery of the shipment to the final destination or within 90 days after a reasonable time for delivery has elapsed in the case of failure to make delivery.

(e) The department may grant a mediation request if the claimant and the carrier agree to participate in the mediation process and:

(1) the claimant was not advised in writing at least one time of the right to mediation as required by §218.61(b)(1)(A) or (2); or

(2) the claimant does not receive the written denial or settlement offer letter required by §218.61(b)(2).

(f) For purposes of subsection (c)(1) and (2) of this section, the 30 day deadline for requesting mediation is calculated from the latter of:

(1) the date of the claim denial or settlement offer letter; or

(2) the date the claim denial or settlement offer letter is mailed or faxed to the claimant.

(g) The department will not grant more than one mediation request to a claimant for one shipment of household goods.

(h) The department will coordinate the selection of a mediator. The mediation will be conducted by written submissions, telephone conferences, or mediation sessions held at the department's facilities in Austin. The department will establish the time, date, and form of the mediation session.

(i) Household goods carriers must participate in this mediation process. The department may impose administrative sanctions, under §218.71 of this title (relating to Administrative Penalties), on a household goods carrier who refuses to participate in the mediation process or otherwise fails to comply with the requirements of this section.

(j) If the claimant fails to appear at the mediation after due notice or, if the mediator determines the claimant has not cooperated in the mediation process, the department's mediation process shall be considered concluded. The claimant may consider pursuing the claim through an appropriate court of law.

(k) The mediator shall preside and have discretion over the mediation procedures, including the ability to require the claimant and the household goods carrier to provide information and documents in a timely fashion.

(l) If the household goods carrier makes a written report of the results of the inspection documenting the lost or damaged household goods and uses the report during the department's mediation, then the carrier shall provide the original or a legible copy of the report to the claimant.

Source Note: The provisions of this §218.62 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104