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There is usually a power imbalance when a logging contractor deals with its licensee. A type of David-and-Goliath situation. The licensee imposes onerous, one-sided terms into its contracts. It may adopt a take-it-or-leave-it attitude towards operations and rates. Under the Timber Harvesting Contract and Subcontract Regulation, contractors and subcontractors have certain rights and remedies. We are familiar with the Regulation, and have been involved in mediations and arbitrations under it. Some related to rates; some not.
Log harvesters sometimes have problems getting paid. Fortunately, there are special remedies available to unpaid contractors and subcontractors under the Forestry Service Providers Protection Act. For contractors those include lien remedies (a lien on all of the owner’s timber) and attachment remedies (an attachment on the owner’s accounts receivable from, usually, the mill that is buying the timber). And, if the owner becomes insolvent, an opportunity arises to be paid from a trust fund that was set up by government.
We can help you through these complicated areas.
Our Forestry Law lawyer is: John Drayton.