August 16, 2020

ODR Will Help Protect Taxi/Truck Fleet Operators From Payment Defaults

Quick Cabs’ was a company that provided chauffeured cars to many corporate executives. One of their first customers was ‘Sun Enterprises’. Sun Enterprises regularly used Quick Cabs’ services, and Quick Cabs raised monthly invoices.

In January 2015, Sun Enterprises stopped clearing Quick Cabs’ invoices without giving any reason whatsoever, though they continued booking cabs. Initially, Quick Cabs continued to fulfill Sun’s bookings, while simultaneously following up about the pending invoices.

However, when Sun Enterprises failed to clear invoices for 7 months, Quick Cabs stopped taking their bookings. They informed Sun Enterprises that they would not take any more bookings until the invoices were cleared. Unfortunately, Sun Enterprises never cleared the invoices, and the long relationship between the companies ended.

Quick Cabs decided to write off the amount owed by Sun Enterprises, but the real loss was the relationship between the companies.

Quick Cabs and Sun Enterprises could have used ODR to resolve the payment issue amicably and a long, mutually beneficial business relationship needn’t have been lost.

Disclaimer: All characters and names are fictional. This is a public interest story, produced by House Court.