[Request for Reconsideration of Decision Disallowing Claim for Refund From Marine Corps]

A firm requested reconsideration of a GAO decision which disallowed its claim for an amount recovered by the Marine Corps for the destruction of a mobile home which it transported under a government bill of lading. The prior claim had been denied because the carrier failed to show that the damage resulted from an exception to carrier liability law for damage incurred in transit because the shipper had shipped a commodity that could not be safely transported, and the defects in the commodity were not apparent on ordinary observation. The protester contended that the record showed the cause of the damage. In addition, the Marine Corps advised GAO that a private insurance carrier had denied liability under an insurance contract because the damage was caused by a defective frame and severe rusting of the undercarriage which would not be apparent on ordinary observation. Further, the stress on the mobile home was aggravated by an unbalanced overload. There is no evidence that the carrier knew or should have known of these conditions. Since the record established that the transportation was performed without negligence by the carrier and the damage resulted solely from acts of the shipper, GAO found that the carrier was not liable for the damage in transit and the claim for refund of the amount recovered by setoff was allowed. Accordingly, the prior decision was reversed.