[Carrier's Claim for Air Force Off-Set for Freight Damages]

B-247576.9: Aug 2, 1995

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A carrier requested review of an Air Force off-set for freight damages to a member's household goods, contending that: (1) one item had preexisting damage and the cost of repair exceeded its depreciated value; (2) it should not be required to pay damages, since the member was reimbursed by his private insurance company; and (3) it was entitled to receive interest on the initial amount that was off-set and later refunded. GAO held that: (1) there was no evidence that the household item had preexisting damage and its repair cost was less than its depreciated value; (2) the carrier failed to avail itself of its right to inspect the damaged item; (3) the carrier was liable for the damage even though the member was reimbursed by his private insurance company; and (4) it did not have the jurisdictional authority to consider the claim for interest. Accordingly, the settlement was affirmed.

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