[Carrier's Claim for Navy Off-Set for Freight Loss and Damage]

B-235558.7: Dec 28, 1994

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A carrier requested review of its denied claim for reimbursement of a Navy offset for freight loss and damage to a Navy member's household goods, contending that it was not liable for the damaged goods, since they were in storage for more than 180 days. GAO held that the carrier was liable for the damaged goods, since it: (1) did not notify the Navy that it was placing the shipment in permanent storage; (2) did not annotate the inventory upon change of custody; and (3) billed the Navy for storage-in-transit, not permanent storage. Accordingly, the original settlement was affirmed.

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