BNUMBER: B-270007
DATE: June 20, 1996
TITLE: Allied Van Lines-Claim for Reimbursement of Amounts
Collected by Setoff for Lost Computer and Software
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Matter of:Allied Van Lines-Claim for Reimbursement of Amounts
Collected by Setoff for Lost Computer and Software
File: B-270007
Date:June 20, 1996
DIGEST
1. A prima facie case of carrier liability is established where lost
items bear a reasonable relationship to items shown on the inventory
as having been packed in the carton containing the lost items. A main
computer unit, associated peripheral equipment, and software that are
compatible parts of a single personal computer arrangement bear such a
reasonable relationship to each other.
2. Where specific items are listed on the DD Form 1840, the fact that
the shipper may have mistakenly failed to identify the correct box
number in which the allegedly lost items were located does not negate
otherwise timely notice of the loss.
DECISION
Allied Van Lines, through its agent, Resource Protection, requests
reconsideration of our Claims Settlement Z-151685(95), September 5,
1995, to the extent the settlement disallows reimbursement of the
offset from funds otherwise due Allied. The setoff arose from loss
during storage and shipment of the household goods of Odis Braxton,
government bill of lading No. 768-577. We affirm the Claims
Settlement.
The record shows that the carrier picked up the shipment of household
goods on April 8, 1992, from San Pedro, California. On April 10,
1992, the shipment, while in temporary storage in San Diego, was
broken into, and some items were stolen. The remainder of the
shipment was delivered to Memphis, Tennessee, on September 25, 1992.
The Army paid the shipper for items lost in the theft and filed a
claim with Allied for $4,946. Allied offered to pay $2,672. The Army
offset the entire $4,946 and Allied requested a refund of $2,719. Our
Claims Settlement allowed refund of $739 for a color scanner and fax
modem which had been claimed by the shipper, based on a finding that
the evidence of tender of those items to the carrier was deemed
insufficient. The settlement denied reimbursement for the balance of
the offset, $1,980. Allied requests refund of that amount.
According to the Military-Industry Memorandum of Understanding, (MOU)
upon delivery, a carrier is responsible for providing the member a
copy of the Joint Notice of loss or damage at Delivery (DD Form 1840,
hereafter referred to as the 1840). The reverse side of this form is
the Notice of Loss or Damage (DD Form 1840R, hereafter referred to as
the 1840R) which is used to report damage discovered after delivery.
The MOU provides that the carrier will accept written notice on the
1840R as overcoming the presumption that the delivery receipt was
correct so long as the form is dispatched to the carrier within 75
days of delivery. The carrier then has 45 days from the dispatch date
to inspect the loss or damage. The shipper then fills out a List of
Property and Claims Analysis Chart (Form 1844) which is completed by
the claims office and which is dispatched to the carrier with the
Demand on Carrier/Contractor (Form 1843).
At issue in this case is inventory item No. 63, a box, 3 cubic feet in
size, which is listed as missing on the 1840. Box No. 63 is
identified on the 1840 as containing "Pack Bell Print/K board,
software." At a later date, on the 1844, the shipper claimed that the
computer, keyboard, laser printer, a color scanner, mouse, modem and
22 software programs were shipped in that box.[1]
The main issue raised by the carrier is that since it would be
physically impossible to place all the items listed by the shipper in
a box of that size, either the items were not tendered or were not
missing, and thus the carrier is not liable. The Army asserts that
the computer is listed on the 1840, and that the carrier was on notice
from the 1840 that the entire computer system was missing. In
addition, the Army asserts that all of the items listed were not in
one box, but were divided between boxes No. 62, 63 and 136. A
statement from Mr. Braxton, dated July 17, 1995, indicates that he
mistakenly identified all the items as having been in box No. 63, when
he should have noted that some of the items were missing from box No.
136. Allied asserts that since it received no notice that box No. 136
was missing during the applicable 75 day time period, the notification
is not timely.
The Army argues that since the items themselves were identified on the
1840, the fact that Mr. Braxton may not have identified the correct
box does not relieve the carrier from liability. The Army found
evidence of tender of the remaining items. The computer, keyboard and
printer are listed on the inventory. The software and mouse, while
not listed, bear a reasonable relationship to the computer system and
might reasonably be shipped in the same cartons. This Office has held
that a prima facie case of carrier liability is established where
items allegedly lost, bear a reasonable relationship to the items
shown on the inventory as the carton's contents. Andrews Forwarders,
Inc., B-255697, Apr. 22, 1994. A main computer unit, associated
peripheral equipment, and software that are compatible parts of a
single personal computer arrangement, even if some of the smaller
components are not individually listed, bear such a reasonable
relationship to each other. Since the carrier packed the shipment and
was responsible for preparing the inventory, it is reasonable to
conclude from the carrier's own labeling and inventory documentation
that items specified on the inventory were tendered, and that related
items were also included in the shipment.
The carrier's allegation that the items listed as lost could not all
have fit in a single carton is supposition only. A large component of
the computer system, its monitor, was apparently packed in a separate
box; the other components, including the main unit, printer, keyboard,
and software, may have fit into a single box. However, even if these
items were packed in more than one box, their listing on the 1840
establishes they were missing on delivery. Our reading of the items
listed in abbreviated fashion on this form is that the missing items
included a main unit (listed as "Pack Bell"), a printer (listed as
"Print"), a keyboard (listed as "K board"), and software (listed as
"software").
Although the carrier and the Army disagree about some facts in this
case, we conclude that the Army has established a prima facie case of
liability, and that Allied has not provided evidence sufficient to
relieve itself of liability. McNamara-Lunz Van and Warehouses, Inc.,
57 Comp. Gen. 415 (1978). Accordingly, we affirm the Claims
Settlement and deny further refund to the carrier.
/s/Seymour Efros
for Robert P. Murphy
General Counsel
1. The computer monitor is listed on the inventory and 1840 in Box No.
62.