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B-195178 1 (1979-06-27)

handle is hein.gao/gaobacuak0001 and id is 1 raw text is: / o &C i GAO United States General Accounting Office Washington, DC 20548 4 The Honorable Barbara Allen Babcock Assistant Attorney General Civil Division Department of Justice Attention: Kenneth J. Bennight, Jr. Commercial Litigation Branch Office of General Counsel In Reply Refer to: B-19517D8 to Dear Ms. Babcock- Subject: Columbia Export Packers, -u Inc3., U.S.D.C. C.D. Calif., Bky. No. 78- 04631-JD, Your file 77-12-C148 At a meeting at the Department of Justice on June 12, 1979, Alan F. Wohlstetter, the attorney representing the trustee, offered to settle on a 50-percent basis the loss and damage claims ($545,621.89) filed by the Government in its Proof of Claim. It was the consensus of the Government representatives (General Accounting Office (GAO), Department of Justice, Department of the Army, Department of the Air Force, and the General Services Administration) that the offer should be rejected. Mr. Bennight requested to be advised whether any settlement offer should be entertained and, if so, on what basis. Most of the Government's loss and damage claims arose with the Army and the Air Force, however, GAO does have some claims included in the Proof of Claim. The claims involve shipments-of household goods which moved at released valuation rates and consequently the Government should have no problem in establishing the measure of damages. Likewise, the Government should be able to establish a prima facie case of carrier liability in most of the claims. However, our experience here at GAO in handling loss and damage claims indicates some problem in adducing evidence with which to refute the carrier's contentions where a defense is raised (such as no exceptions being noted, when and where damage was discovered, goods packed by owner, water damage, or shipment moved in a particular mode, etc.). We recommend that the 50-percent offer be rejected. However, in view of the costs of further development and handling of the claims, the possible 1 Ac 7~i- J o (eb A e 1111*16 1_fa \u '

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