[Carrier's Claim for Coast Guard Off-Set for Freight Damages]
Highlights
A carrier appealed the settlement denying its claim for refund of a Coast Guard offset for damages to a member's household goods during shipment, contending that it was charged for preexisting damages. GAO held that: (1) the Coast Guard reasonably determined that certain items were damaged during shipment; (2) except for a few items, the carrier failed to provide sufficient evidence to contradict the Coast Guard's findings; (3) the carrier was liable for interest on the damages payment, since the carrier failed to pay for the damages promptly; and (4) the Coast Guard should recalculate the interest payment, since the carrier received a refund of the offset for the previously damaged items. Accordingly, the settlement was affirmed.