[Claim for Refund of Amounts Recovered by Army for Household Goods Damage]

A common carrier claimed a refund of amounts recovered by the Army for damages in transit to the household effects of an Army member. Under a Government bill of lading (GBL), the released value of the goods was $0.60 per pound per article and a lump sum of $20,000. On delivery at the destination, the consignee noted damages to several articles. The carrier offered full settlement of the claim on the basis of the released value of $0.60 per pound per article. The Army rejected the carrier's offer as too low because the owner had declared a lump-sum value of $20,000 for the goods. The carrier asserted that: (1) the GBL as issued was ambiguous; and (2) it was paid freight charges on the basis of the $0.60 released valuation rates. GAO determined that: (1) the GBL as issued contained conflicting provisions; and (2) the carrier may be entitled to additional freight charges. However, GAO held that the carrier was obligated to seek clarification of the GBL and, since it did not, it was liable for any resulting damages. Accordingly, the claim was denied.