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B-191129 1 (1978-09-08)

handle is hein.gao/gaobadgkn0001 and id is 1 raw text is: JS>{ MTHE COMPTMOLLUIR GNREMAL * DECISION . .. o THE UrI s TAT S 36es W A SHINGTON .2050 FILE: 5-191129 DATE: september 8, 1573 MATTEMt OF: Express Airways, Inc. DIGEST: 1. Burden of showing that a new company is not mere continuation or reorganisation of old company is on corporation seeking to avoid liability for debts of old company. 2. Direct recovery from new corporation upheld where new corpora- tion is in essence a continuation of activities and interests of the old company. 3. There is no .evidence in tha record of an oral agreement as to the rates applicable between the points, involved and question arises as t' whether Transportation Officer can negotiate such rates. 4. Where record indicates that cargo door aircraft may have been necessary at higher rates but there is no evidence of that fact, GSA is requested to further develop the record. Express Airways, Inc. (Express), in its letters of January 17, and January 25, 1978, requests that the Comptroller General of the United States review the General Services Administration's (GSA) action on various bills for transportation charges. See Section 201(3) of the General Accounting Office Act of 1974, 49 U.S.C. 66(b) (Supp. V, 1975). GSA, after audit, notified Express of various overcharges totaling $7,562.05. In the absence of refund, the overcharges were deducted from other tonies due Express. In addition to the deduction action, GSA has charged Express with additional overcharges of $14,181.60. Under regulatior.. implemencing Section 201(3) of the Act, deduction action and the setting up of Express in debt for the additional overcharges constitutes a reviewable settlement action. 4 C.F.R. 53.1(b) (1)(3) and 53.2 (1977). Express' letters comply with the criteria for requests for review of that action. 4 C.F.R. 53.3 (1977). The record shows that GSA deducted $7,562.05 in transportation overcharges from monien otherwise due Express to satisfy the debts of Astro Airways, Inc., d/b/a Mission Airlines (Mission) on the basis that Mission is a predecessor company of Express and therefore it is

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