January 14, 20...
Gentlemen
With reference to the claims submitted to our office by your organisation on 15 and 26 August 20... I must advise you that, even though you obviously had some items damaged due to moisture, Caterpillar cannot accept responsibility for this damage and is rejecting this claim. This decision was reached, after a great deal of discussion and thorough examination of the available facts, for the following reasons:
1. We have no proof that the spare parts may not have been damaged during transit from Japan, or during transit within Russia; both of which become insurance matters.
There in no inspection report from the PURCHASER, or PURCHASER'S Agent, upon arrival of the goods at the port verifying that there was no damage to the parts at the time and thereby absolving the carrier of any responsibility. (The claim itself states that "sea water came into the plastic bags").
2. There is no verification of the actual quantity of the parts damaged.
- We have not been able to inspect all of the items claimed as damaged.
- The End User claimed one hundred per cent of all items as damaged, but then suggested verbally that perhaps only fifty (50) were in fact damaged, or could not be used.
- The pictures provided by the End User did not indicate one hundred per cent damage.
3. Incomplete documentation of the claim.
- While we accept the fact that certain parts were damaged by moisture, we cannot accept claims "carte blanche". In this claim there is no documented justification for payment of a percentage of this claim, and we will not negotiate a figure.
Although we are rejecting financial liability for this claim, it does not mean that Caterpillar is neither interested in preventing this type of situation in the future, nor willing to assist your organisation in salvaging those items which were damaged.
One of the best ways to reduce deterioration of parts in transit along with providing security and lower freight rates is the use of containers for parts shipments. We continue to recommend implementation of this opinion.
In order to facilitate the processing of future claims, we suggest holding a seminar on the preparation of all types of claims. In the seminar we would discuss the exact guidelines to use in providing information and documentation Caterpillar requires for each type of claim, the time frame in which we should receive this information/documentation, as well as what the End User should do before considering a claim on Caterpillar. I feel a better understanding of these procedures would be beneficial to all concerned.
If you have any further questions about the claim in question, please contact me.
Very truly yours
P. Smith
Questions:
1. Is the claim rejected?
2. What are the supplier's reasons for rejecting the claim? Try to explain them in your own words.
3. How can you account for the reasons given? Are they serious?
4. What steps does the Supplier intend to take to prevent this kind of situation in the future?
Assignments:
1. Draw up a plan of the letter.
2. Fill in the following table.
Reasons for rejecting the claim
Steps to remedy the situation
Find just one or two key words to express the idea of every "reason" and every "step".
Exercise 2. In the following letters the Supplier admits his fault. What will the letters look like if he did not admit his fault? Change the letters accordingly using the prompts given below.