delete PART 1005—PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND VOLUNTARY DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING SALVAGE
Federal regulation governing claims procedures for lost/damaged property transported by interstate carriers (railroads, motor carriers, water carriers, freight forwarders). Sets mandatory filing deadlines, minimum claim requirements, carrier acknowledgment and investigation procedures, 120-day decision timeline with status updates, salvage handling rules, and special weight-based settlement rules for scrap metal.
This regulation imposes costly procedural mandates on private carriers for handling customer claims, representing federal overreach into contract enforcement. The detailed requirements (30-day acknowledgments, 120-day decisions, specific file numbering) create administrative burdens that raise compliance costs, disproportionately harm small carriers, and stifle market innovation. Contract and tort law already provide adequate remedies for bad faith, while competitive forces incentivize efficient claims processing. The hidden tax of regulatory compliance ultimately raises prices for consumers with no offsetting public benefit that justifies federal preemption of private agreements.