[Appeal of Denial of Claim for Damage to Household Goods]

A firm appealed the denial of its claim for a refund from an offsetting collection by the Navy for damages to a shipment. The protester packed the shipment and turned it over to the Government for sea transport. The goods were delivered to the protester, which delivered the shipment to its owner. Subsequently, damages and losses were discovered and the Navy determined that the carrier was liable in the amount of $444.80. The protester offered to pay half of that amount because the damage could not be determined to be the sole responsibility of either the protester or the Government. The Navy then set off the full amount. GAO held that: (1) no evidence existed to establish the liability of either the Government or the carrier; (2) each should pay half of the amount for which they were jointly liable; and (3) the Navy should refund that portion of the amount which it incorrectly set off. GAO noted that the Navy incorrectly calculated the joint liability and, the amount to be paid to the claimant was reduced accordingly.