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B-235558.6 1 (1991-07-05)

handle is hein.gao/gaobadnxd0001 and id is 1 raw text is: Comptoler General of the United States W*Inton, DC. 2W4 Decision Matter of: Fogarty Van Lines File: B-235558.6 Date: July 5, 1991 DECISION Fogarty Van Lines asks that we review our Claims Group's disallowance of reimbursement of $1,420,37 set off by the Army from revenues otherwise due to the firm to recover for the loss of and damage to a member's household goods incident to transit under Government Bill of Lading (GBL) QP-204,539. Fogarty admits both its liability and the amount of damages, but contends that the set-off is improper because the member's insurance company, and not the government, is the real beneficiary of such action. We affirm the Claims Group's decision. The insurance company, United Services Automobile Association (USAA), reimbursed the member for part'of the total loss/damage pursuant to the insurance cbntract between the two parties, with the government compensating the member for the remainder under the Military Personnel and Civilian Employees Claims Act of 1964, as amended, 31 U.S.C. § 3721.1/ The Army then set off Fogarty's liability pursuant to the contract for the transportation with the carrier, and prorated the set-off amount between USAA and the government based on what each paid the member. Our Claims Group endorsed the set-off and prorating. In supporting its action, the Army directs our attention to a Stipulation and Order entered between USAA and the military services in USAA v. Secretary of the Air Force, Civil Action No. 80-2458 (D.D.C. 1981). In this Stipulation and Order, the services agreed to demand from a carrier payment of the full contractual liability owed for loss/damage, and to prorate 1/ The member claimed either loss or damage on 12 items at 73,169.98. USAA insured three of these items (two reimbursed at amounts above the government's adjudication), paying $1,808.58.

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