B-213834 OM, JUN 1, 1984
Highlights
PRECISE-UNAVAILABLE THE COMPTROLLER GENERAL: HEREWITH IS THE FILE TOGETHER WITH CORRESPONDENCE WHICH CONSTITUTES IN APPEAL TO SETTLEMENT OF THIS DIVISION IN THE CASE OF ALLSTATES VAN LINES CORPORATION. THE AMOUNT OF $43.17 WAS SET OFF BY THE DEPARTMENT OF THE AIR FORCE (AIR FORCE) FROM MONIES OTHERWISE DUE ALLSTATES FOR DAMAGE SUSTAINED TO PERSONAL PROPERTY TRANSPORTED BY ALLSTATES BELONGING TO AN AIR FORCE MEMBER. THE SHIPMENT WAS SUBJECT TO A 500-POUND MINIMUM SHIPPING CHARGE AND TOTAL CHARGES WERE BASED ON THE 500-POUND MINIMUM. IT WAS DISCOVERED THAT 31 POUNDS OF THE SHIPMENT WERE MISSING OR IRREPARABLY DAMAGED. THE AIR FORCE COMPUTED THE CHARGE BASED ON THE FOLLOWING FORMULA: WEIGHT OF LOSS X TOTAL SHIPMENT TOTAL WEIGHT OF COST THE SHIPMENT THIS FORMULA IS BASED ON 49 C.F.R.
B-213834 OM, JUN 1, 1984
PRECISE-UNAVAILABLE
THE COMPTROLLER GENERAL:
HEREWITH IS THE FILE TOGETHER WITH CORRESPONDENCE WHICH CONSTITUTES IN APPEAL TO SETTLEMENT OF THIS DIVISION IN THE CASE OF ALLSTATES VAN LINES CORPORATION.
INDORSEMENT
ASSOCIATE DIRECTOR, GGD-CLAIMS GROUP
RETURNED. ALLSTATES VAN LINES CORP. (ALLSTATES) APPEALS A SETTLEMENT OF OUR CLAIMS DIVISION (CLAIMS) WHICH DISALLOWED ALLSTATES' CLAIM FOR A REFUND OF $13.49. (CLAIMS GROUP NO. Z-2621188(12)). THE AMOUNT OF $43.17 WAS SET OFF BY THE DEPARTMENT OF THE AIR FORCE (AIR FORCE) FROM MONIES OTHERWISE DUE ALLSTATES FOR DAMAGE SUSTAINED TO PERSONAL PROPERTY TRANSPORTED BY ALLSTATES BELONGING TO AN AIR FORCE MEMBER. ALLSTATES CONTENDED THAT IT ONLY OWED $29.68 FOR THE PROPERTY DAMAGE.
THE SHIPMENT WAS SUBJECT TO A 500-POUND MINIMUM SHIPPING CHARGE AND TOTAL CHARGES WERE BASED ON THE 500-POUND MINIMUM. UPON RECEIPT, IT WAS DISCOVERED THAT 31 POUNDS OF THE SHIPMENT WERE MISSING OR IRREPARABLY DAMAGED. IN DETERMINING THE AMOUNT OF THE TRANSPORTATION CHARGE TO BE RECOVERED FOR FAILURE TO DELIVER THE 31 POUNDS IN GOOD CONDITION, THE AIR FORCE COMPUTED THE CHARGE BASED ON THE FOLLOWING FORMULA:
WEIGHT OF LOSS X TOTAL SHIPMENT TOTAL WEIGHT OF COST THE SHIPMENT THIS FORMULA IS BASED ON 49 C.F.R. SEC. 1056.15(B) (1983), WHICH STATES THAT IN ORDER TO CALCULATE THE UNEARNED CHARGE ON GOODS LOST OR DESTROYED IN TRANSIT, THE PORTION OF THE SHIPMENT DELIVERED IS MULTIPLIED BY THE TOTAL CHARGES TO DETERMINE THE AMOUNT TO BE RECOVERED.
ALLSTATES DOES NOT DISPUTE THIS FORMULATION. HOWEVER, IN COMPUTING THE PERCENTAGE OF THE SHIPMENT DELIVERED, THE AIR FORCE USED THE ACTUAL WEIGHT OF THE SHIPMENT AS THE TOTAL WEIGHT OF THE SHIPMENT IN THIS FORMULA. ALLSTATES ARGUES THAT SINCE THE SHIPMENT WAS SUBJECT TO A 500 POUND MINIMUM, THE 500-POUND MINIMUM WEIGHT SHOULD BE CONSIDERED THE TOTAL WEIGHT OF THE SHIPMENT AND SHOULD HAVE BEEN USED AS THE BASIS FOR COMPUTING THE UNEARNED TRANSPORTATION CHARGE.
UNDER THE CIRCUMSTANCES, WE AGREE WITH THE CARRIER AND FIND THAT THE UNEARNED CHARGE SHOULD BE BASED ON THE MINIMUM SHIPPING WEIGHT. ITEM 2 OF MILITARY RATE TENDER ICC-NO. 20-X, APPLICABLE TO THIS SHIPMENT, STATES THAT "ALL ... CHARGES BASED ON WEIGHT WILL BE SUBJECT TO THE NET WEIGHT OF ARTICLES SHIPPED, MINIMUM OF 500 POUNDS." SINCE 500 POUNDS IS CONSIDERED THE TOTAL WEIGHT OF THE SHIPMENT FOR ANY SHIPMENT UNDER 500 POUNDS FOR DETERMINING APPLICABLE CHARGES, IN OUR VIEW, THE COMPUTATION OF THE UNEARNED TRANSPORTATION CHARGE SHOULD BE BASED ON THIS FIGURE RATHER THAN ON THE ACTUAL WEIGHT. CF. YELLOW FREIGHT SYSTEM, INC., B-191258, JULY 7, 1978. WE NOTE THAT WE HAVE BEEN INFORMALLY ADVISED BY THE GENERAL SERVICES ADMINISTRATION AND THE INTERSTATE COMMERCE COMMISSION THAT THEY AGREE WITH OUR INTERPRETATION.
WE NOTE THAT THE RECORD INDICATES THAT THE AIR FORCE ADJUSTED A PORTION OF THE ORIGINAL CHARGES AND A CREDIT VOUCHER WAS ISSUED FOR THE AMOUNT OF $3.81. A SETTLEMENT CERTIFICATE ALLOWING ALLSTATES' CLAIM FOR $9.68, THE DIFFERENCE IMPROPERLY SET OFF, SHOULD BE ISSUED. CLAIMS SHOULD ENSURE THAT THE SETTLEMENT CONSTITUTES A FULL AND FINAL SETTLEMENT OF THE CLAIM.