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B-206161 1 (1982-07-20)

handle is hein.gao/gaobadkna0001 and id is 1 raw text is: 11114I% D4ECISI!ON B-206161 T14 COMPYMOLLR UINUMAL Oft 'tCiL UrfLSO 3AT'rJ WAHINC3TON. V.C .O 541B DATE: July 20, 19 2 '0 * It I, I ii 9/ '/4 'I I.' j .. *i .\%.'s ,g'.w. MATTER OF: Southern Pacific Transportation Company DIGEST: Legal basis 0xists for Army to set off a damage claim, arising out of train derailment in May 1975, against monies currently due rail carrier for transpor- tation services, notwithstanding claim is time-barred by provisior,.s of commercial bill of lading and six-yeaz statute of limitations governing inatitution of suit arising out of contract. The Department of the Army, U.S. Army Finance and Accounting Center, Indianapolis, Indiana, requests advice under the Federal Clairs Collection Standards, 4 C.F.r. 5 104.4 (1982), on the question of whether the Armyi can set off a danage claim, artsing out of a train derailment on May 13, 1975, against monies currently due the Southern Pacific Transportation Company. 'he carrier's position, that the claim is time- barred, is based on section 2(b) of the terms and conditions of the commercial hill of lading. That section provides that no carrier shall be liable for damage where suit is not instituted within two yearn and one day from the day when notice in writing is given by the carrier that the claim is denied. We agree with the Army that the limitation period in the commercial bill of lading does not prevent setoff to recover on its claim. The shipmont was transported on a Government bill of lading (GL). GBL K-5164963 was issued on May 6, 1975, to transport a shipment of guided missiles front California to Alabama. Among its terms was the provi- sion that the GBL was governed by Title 4, Part 52 of the Code of Federal Regulations. Section 52.51(g) of 4 C.F.R. (1975) provided, in part; '~ f#I---.I 4. .4 % Wet t--1.. ', * 14 - - ~ ~~~~~ raw. *.4 -' 9' 2 9~~I~ FILE;

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