Liability of Carrier for Overcharges of Related Carrier

A firm requested a review of action taken by the General Services Administration (GSA) in recovering alleged overcharges billed and collected by a company in New York by deducting from freight charges otherwise due the firm. The validity of the overcharges was not the issue; the issue for resolution was whether it was proper for GSA to make deductions from monies due the firm. While GSA recognized the company as the debtor, GSA contended that the firm was the mere continuation of the company. The facts relied on by GSA for its contention were derived from the record of the Interstate Commerce Commission in which the freight forwarder operating rights were transferred to the firm. Under the facts of the record there appeared no theory by which the firm could be held liable directly for the debts of the company. Both the company and the firm appeared to be distinct corporate entities, despite common offices, shareholders, corporate location, and legal counsel. It was improper to make the deductions from monies due the firm for overcharges collected by the company. Settlement should be made by GSA consistent with this decision.