Lumber disputes happen—but knowing the rules can prevent a headache. When a buyer and seller disagree on the grade or value of a shipment, there’s a right way (and a wrong way) to handle it. Here’s a simple breakdown of NHLA’s rules for resolving these issues.
Step 1: Did the Seller Agree to the Buyer’s Grade & Count?
- If the seller agreed in advance to the buyer’s grading and tally, there’s not much to dispute. The seller must honor that agreement.
Step 2: Does the Purchase Agreement Mention NHLA Rules?
- If the agreement states “NHLA Rules and Sales Code shall Govern,” then NHLA’s rules apply.
- What this means:
- The buyer must keep the entire shipment intact (no mixing or using it).
- The buyer must report the issue within 14 days of unloading.
- The buyer must provide a piece tally to the seller.
- If these rules aren’t followed, the buyer must pay the seller’s original invoice—no exceptions.
Step 3: What If NHLA Rules Don’t Apply?
- If the sale wasn’t based on NHLA rules, the buyer and seller must work out a solution themselves.
- If they can’t agree, NHLA can step in—but only if both parties agree to an NHLA inspection.
- If no agreement is reached? Litigation may be the only option.
Key Takeaway:
If you’re handling a lumber dispute, follow these steps to avoid unnecessary trouble. Keep shipments intact, report issues on time, and check your agreements upfront. That way, everyone plays by the same rulebook.