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B-197911.4 1 (1988-12-02)

handle is hein.gao/gaobadnhr0001 and id is 1 raw text is: The Comptrofler General of the United States SWashington, D.C. 20548 UX IT Decision Matterof Interstate Van Lines, Inc. - Unearned Freight Charges ' File: B-197911.4 Date: December 2, 11t8 DIGEST The government paid a carrier's charges for transporting a shipment of household goods belonging to an Air Force member, including two items delivered in a damaged condi- tion. The Air Force recovered a portion of the freight charges in addition to the replacement value of the damaged items. The carrier claims refund of the freight charges, contending that an estimate of repair costs shows the items were repairable, and therefore, it earned the freight charges. The Air Force, however, has shown that it is not economically feasible to repair the damaged items because the repair costs exceed the items' replacement value. Thus, the items, in law, were not delivered in specie; therefore, the carrier is not entitled to the freight charges since they were not earned. DECISION Interstate Van Lines, Inc., appeals our Claims Group's denial of its claim for refund of freight charges deducted by the Air Force as part of the damages for damage incurred to two items of household goods belonging to an Air Force officer.l/ We sustain the denial of Interstate's claim. The government had paid Interstate for transporting the member's household goods. Of several items either lost or damaged only two are in issue. The Air Force recovered the replacement value of the items and since in the agency's opinion they were irreparable, the Air Force also collected $27.26 of the shipment's freight charges as unearned. 1/ The claim was denied in Settlement Certificate Z-2727878(78), August 19, 1987. The shipment, consisting of goods belonging to First Lieutenant Timothy Chappell was transported in July and August 1984, on Government Bill of Lading NP-160187. o0 & 7q76

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