[Appeal of Claims Group Denial of Refund Claim]

B-216757: Aug 14, 1985

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A firm appealed the Claims Group's denial of its claim for a refund from the Army of payment withheld for loss and damage to an Army officer's household goods discovered after the firm had made delivery. At the time of delivery, exceptions to the condition of three articles were stated on the receipt. Subsequently, the Army notified the firm of additional loss and damage to the shipment, stated that a claim would be filed, and invited them to inspect the damaged goods. The firm denied the Army's claim, whereupon the Army deducted the damage and loss costs from its payment to the firm. In its appeal, the firm argued that the Army had not established liability for lost and damaged goods other than those noted at delivery. GAO agreed with the Claims Group's finding that, since the firm had furnished no evidence to rebut the Army's claim, its liability had been established. Accordingly, GAO affirmed the denial of the claim.

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