Claim Against Offset Action

Clarification of a decision involving a shipment of household goods that was damaged was requested. The damages were recovered by offset and the carrier claimed a refund, denying any obligation to unpack and inspect the goods upon pick up from storage. The claim was disallowed on the ground that, while the carrier was not obligated to unpack and inspect the goods, it was liable for any loss or damage which occurred in transit. The request for clarification alleged that the decision is being used to support the contention that, unless sealed cartons received from a storage warehouse are opened, inspected, and repacked, the items are presumed to have been received by the carrier in the original condition; the carrier is then held liable for any damages noted upon delivery unless it can be proved that loss or damage did not occur while in the carrier's custody. Specifically, clarification was requested concerning carrier liability when it is not allowed or authorized to open, inspect, and repack the containers. The general rule has been that a carrier cannot insist upon obtaining knowledge of the character of goods offered for transportation except where there are indications that the contents are of a suspicious or dangerous nature, but a carrier can require the shipper to make representations regarding the nature of the property tendered for transportation. As for repacking to protect itself, a carrier has no obligation to receive and transport property not properly prepared for shipment and it can refuse to accept improperly packed property. If repacking is necessary, it should be done at government expense. Refusal of an agency to accept the external condition of the container upon delivery as evidence that damage or loss was due to improper packing is proper. Furthermore, once a prima facie case of carrier liability has been established, the burden is on the carrier to prove that faulty packaging was the sole cause of the loss or damage. It is not unfair or in violation of the law that carriers are forced through offset action to pay this type of claim.