Determination of Carrier Liability

A firm filed a claim to recover monies set off for damage sustained by Government property which the firm had transported. Three radar antennae shipped on a truck were not listed on a Government bill of lading (GBL). As loaded by the agency, they protruded above the open-top cargo body of a truck and were damaged when they struck an overpass. The agency determined that the carrier was liable for damage to the antennae. When the firm denied liability, the agency set off the money owed. The carrier did not dispute the finding that a prima facie case of common carrier liability existed, but it asserted that the acts of the Government relieved it of liability. The antennae caused the shipment to be overdimensional. Because of the agency's failure to identify the antennae on the GBL, the carrier was not on notice that the shipment was overdimensional. It also contended that the shipping agency did not load the antennae properly and that the improper loading, not the accident, was the proximate cause of the damage. The agency asserted that the Government was not negligent and that the carrier should be held fully liable for the damage to the antennae. When, as here, the shipper performs the loading, he is responsible for defects which cannot be discerned by ordinary observation. However, if improper loading is apparent, the carrier will be liable notwithstanding the shipper's negligence. The carrier had the opportunity to observe the configuration of the shipment and object to the condition of the shipment if it believed that it could not be safely transported. The courts have stated that, since a carrier does have the duty to safely transport goods delivered to it in good condition, an inspection by the carrier should take place to prevent any damage en route. The carrier has not shown that the agency's action caused the damage to the shipment. The agency's determination of liability was correct. However, the issue of the correct measure of damages was also raised by the carrier as the amount set off reflected the actual value of the antennae. The carrier contended that the released valuations of the tender limited its liability. The agency was uncertain as to which tender was applicable. This matter may be referred to the General Services Administration for technical assistance. Upon determination of the applicable tender terms and conditions, the agency should calculate the proper amount of damages and take appropriate settlement action.