[Appeal of Claims Group Settlement Disallowing Claim for Funds Set Off Under Government Bill of Lading]

A common carrier appealed a Claims Group settlement which disallowed its claim for monies set off against it by the Navy in connection with the loss of items which were being transported by the carrier. The carrier contended that it was not liable for the missing property. GAO held that: (1) the Navy did not provide any evidence showing that the tendered items were lost while in the carrier's possession; and (2) the Navy failed to notify the carrier of the loss of one of the allegedly missing items. Accordingly, the appeal was sustained, and payment of the claim should be made.