B-125214, JUN. 6, 1956

B-125214, JUN. 6, 1956

TO NORTH AMERICAN VAN LINES, INC.:

WE HAVE YOUR LETTER OF APRIL 23, 1956, RELATIVE TO OUR DECISION OF MARCH 28, 1956, B-125214, ASKING WHAT THE CONSIDERATION IS, IF THE TRANSPORTATION CHARGES ARE NOT PAID, FOR YOUR PAYMENT FOR DAMAGE TO THE SHIPPER'S GOODS. YOU ALSO ASK IF WE INTEND THAT THE GOVERNMENT ASSUME RESPONSIBILITY FOR DAMAGE IN FUTURE SIMILAR SITUATIONS.

THE PROTEST CONTAINED IN YOUR LETTER OF NOVEMBER 29, 1955, WHICH WAS THE SUBJECT OF DECISION B-125214, CONCERNED ONLY THE NONPAYMENT OF ACCESSORIAL CHARGES. AT THAT TIME YOU APPARENTLY RECOGNIZED THE WELL SETTLED PRINCIPLE THAT THE GOVERNMENT IS NOT LIABLE FOR FREIGHT CHARGES ON UNDELIVERED GOODS. PRESUMABLY YOUR FIRST QUESTION RELATES TO INSURANCE OR OTHER COMPENSATION WHICH MAY HAVE BEEN PAID TO THE OWNER OF THE HOUSEHOLD GOODS, SINCE NOTHING IN THE RECORD PERTAINING TO BILL OF LADING WY-3821237 SUGGESTED THAT THE UNITED STATES HAD BEEN COMPENSATED IN DAMAGES FOR THE DESTROYED GOODS.

THE MATTER OF COMPENSATION FOR THE DESTROYED GOODS IS PRIMARILY A MATTER ENTIRELY BETWEEN YOU AND THE OWNER. SEE JOINT TRAVEL REGULATIONS FOR THE UNIFORMED SERVICES, PARAGRAPH 8151. AS A COMMON CARRIER IN RELATION TO THIS SHIPMENT, YOU WERE CHARGED WITH THE DUTY OF SAFE DELIVERY TO THE CONSIGNEE AT DESTINATION. 49 U.S.C.A. 20/11), 316/B), AND 319. YOUR CONTRACT WITH THE UNITED STATES IS NOT CHANGED BY THE FACT THAT THE OWNER MAY HAVE BEEN COMPENSATED FOR HIS LOSS. 6 COMP. GEN. 698 AND 30 COMP. GEN. 348. BY THIS CONTRACT, THE UNITED STATES UNDERTOOK TO PAY YOUR CHARGES AS CONSIDERATION FOR YOUR PROMISE TO PACK, STORE, TRANSPORT, AND DELIVER IN GOOD ORDER AT DESTINATION THE HOUSEHOLD GOODS OF A MEMBER OF THE ARMED FORCES. THE ONLY BENEFIT OR CONSIDERATION TO THE GOVERNMENT CONTEMPLATED BY THIS CONTRACT WAS THE SAFE DELIVERY OF THOSE GOODS TO THE PARTY NAMED IN THE CONTRACT AT THE TIME AND PLACE CALLED FOR. WHEN YOU WERE UNABLE TO MAKE SUCH A DELIVERY BECAUSE THE GOODS HAD BEEN DESTROYED WHILE IN YOUR CUSTODY, THE CONSIDERATION FOR THE GOVERNMENT'S UNDERTAKING FAILED AND THERE WAS NO LONGER A DUTY TO PAY YOUR CHARGES. AS WE STATED IN OUR DECISION OF MARCH 28, 1956, IT IS ESTABLISHED LAW THAT WHEN GOODS TRANSPORTED ON A GOVERNMENT BILL OF LADING ARE LOST IN TRANSIT, THE CARRIER IS NOT ENTITLED TO FREIGHTAGE. ALCOA STEAMSHIP COMPANY V. UNITED STATES, 338 U.S. 421; STRICKLAND TRANSPORTATION COMPANY V. UNITED STATES, 23 F.2D 466.

AS TO YOUR SECOND QUESTION REGARDING THE GOVERNMENT'S ASSUMPTION OF RESPONSIBILITY FOR DAMAGE, NOTHING IN OUR DECISION SUGGESTED OR WAS INTENDED TO SUGGEST A GENERAL ASSUMPTION OF RESPONSIBILITY BY THE GOVERNMENT FOR DAMAGE OCCURRING TO SHIPMENTS COVERED BY GOVERNMENT BILLS OF LADING WHILE IN A CARRIER'S CUSTODY. THIS ORDINARILY WOULD SEEM TO BE A MATTER GOVERNED BY THE PROVISIONS OF THE INTERSTATE COMMERCE ACT, AS CONTAINED IN 49 U.S.C.A. 20/11), 316/B), AND 319.