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TO UNION FREIGHTWAYS: REFERENCE IS MADE TO YOUR LETTER OF APRIL 25. FOUR OF THE ENGINES WERE DAMAGED EN ROUTE AND WERE RETURNED TO ORIGIN FOR REPAIRS. YOU BILL FOR FREIGHT CHARGES ON THE BALANCE OF THE SHIPMENT (SIX ENGINES) WAS COMPUTED AT THE APPLICABLE RATE TIMES THE WEIGHT OF THE PROPERTY DELIVERED AT DESTINATION AND WAS DULY PAID. BASED ON THE APPLICABLE RATE TIMES THE WEIGHT OF THE FOUR ENGINES WHICH WERE RETURNED TO ORIGIN. WAS DISALLOWED ON THE GROUND THAT THE FREIGHT CHARGES WERE UNEARNED. IT IS YOUR CONTENTION THAT AS A DEDUCTION FROM AMOUNTS OTHERWISE DUE YOUR COMPANY WAS MADE BY THE DEPARTMENT OF THE AIR FORCE TO REIMBURSE THE GOVERNMENT FOR THE DAMAGE TO THE FOUR ENGINES. YOU ARE ENTITLED TO ADDITIONAL FREIGHT CHARGES FOR THE UNDELIVERED ENGINES.

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B-115001, AUG. 21, 1956

TO UNION FREIGHTWAYS:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 25, 1956, FILE SPE-110, REQUESTING REVIEW OF THE SETTLEMENT CERTIFICATE DATED APRIL 13, 1956, IN CLAIM NO. TK-400446, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE FOR THE TRANSPORTATION OF A SHIPMENT OF AIRPLANE ENGINES CONSIGNED FROM MARION, OKLAHOMA TO FORT CROOK, NEBRASKA, UNDER BILL OF LADING AF-21252, IN MAY 1950. FOUR OF THE ENGINES WERE DAMAGED EN ROUTE AND WERE RETURNED TO ORIGIN FOR REPAIRS. YOU BILL FOR FREIGHT CHARGES ON THE BALANCE OF THE SHIPMENT (SIX ENGINES) WAS COMPUTED AT THE APPLICABLE RATE TIMES THE WEIGHT OF THE PROPERTY DELIVERED AT DESTINATION AND WAS DULY PAID. YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES, BASED ON THE APPLICABLE RATE TIMES THE WEIGHT OF THE FOUR ENGINES WHICH WERE RETURNED TO ORIGIN, WAS DISALLOWED ON THE GROUND THAT THE FREIGHT CHARGES WERE UNEARNED. IT IS YOUR CONTENTION THAT AS A DEDUCTION FROM AMOUNTS OTHERWISE DUE YOUR COMPANY WAS MADE BY THE DEPARTMENT OF THE AIR FORCE TO REIMBURSE THE GOVERNMENT FOR THE DAMAGE TO THE FOUR ENGINES, YOU ARE ENTITLED TO ADDITIONAL FREIGHT CHARGES FOR THE UNDELIVERED ENGINES.

WHERE PROPERTY IS INJURED IN TRANSIT, THE GENERAL RULE IS THAT THE MEASURE OF DAMAGES IS THE DIFFERENCE BETWEEN THE VALUE OF THE PROPERTY IN AN UNINJURED CONDITION AT DESTINATION AND ITS VALUE IN THE DEPRECIATED CONDITION RESULTING FROM THE INJURY, LESS THE APPLICABLE FREIGHT CHARGES, IF UNPAID. GULF C. AND S.FE. RY. CO. V. TEXAS PACKING CO., 244 U.S. 31; MELTZER V. PENNSYLVANIA R. CO., 29 F.SUPP. 840; TEXAS AND PACIFIC RY. CO. V. PRUNTY, 230 S.W. 396; HERRIN TRANSP. CO. V. SHELDON, 209 S.W. 2D. 943; KANSAS CITY SOUTHERN RY. CO. V. SHULL, 136 S.W. 2D. 1040; TEXAS AND N.O.R. CO. V. MANDELL, 117 S.W. 2D. 1116; WATSON BROS. TRANSPORTATION CO. V. DOMENICO, 194 P. 2D. 323; AND MCELWEN V. ATLANTIC COAST LINE R. CO., 43 S.E. 2D. 485. THE COST OF RESTORING THE PROPERTY HERE CONCERNED TO ITS VALUE AT DESTINATION IN AN UNINJURED CONDITION WAS THE COST OF REPAIRS AT MARION, PLUS THE COST OF TRANSPORTING THE PROPERTY TO FORT CROOK. FROM THE AMOUNT THUS DUE IN SATISFACTION OF THE DAMAGE, THE FREIGHT CHARGES FROM MARION TO FORT CROOK WERE DEDUCTED, LEAVING THE COST OF REPAIRS AS THE NET CLAIM ASSERTED AGAINST YOUR COMPANY.

IN THESE CIRCUMSTANCES, NO ADDITIONAL CHARGES ARE DUE AND THE SETTLEMENT DISALLOWING YOUR CLAIM IS SUSTAINED.

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