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B-261348 1 (1996-02-16)

handle is hein.gao/gaocrptadqr0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision




Matter of: Atlas Van Lines--Claim for Reimbursement of Amounts Collected by
            Setoff for Loss of Household Goods

File:       B-261348

Date:     February 16, 1996

DIGEST

Although a carrier is generally liable for all damage to property in its control, the
carrier will not be held liable if it shows that the damage was caused by an act of
God as long as there is no intervening fault on the part of the carrier. When the
carrier has adequate notice of severe flooding and fails to move property in its
control, that failure constitutes the intervening fault of negligence, and the carrier is
liable for the damage which results. The carrier has the burden of proving that it
was not negligent.

DECISION

This is in response to an appeal of a Claims Group settlement which denied the
claim of Atlas Van Lines for reimbursement of amounts collected by setoff for loss
of household goods in storage during the Great Midwest Flood of 1993.1 We affirm
the Claims Group's settlement.

At the time of the Great Midwest Flood of 1993, the household goods of Staff
Sergeant Nick Anderson, USAF, were in storage under government bill of
lading No. SP-011,693 at ABC Moving and Storage, an agent of Atlas Van Lines, in
Chesterfield, Missouri. On July 31, 1993, the Monarch Chesterfield levee on the
Missouri River failed. In the flooding that followed, Sergeant Anderson's household
goods were destroyed. The Air Force paid Sergeant Anderson $19,373.95, and then
collected $3,400.00 from Atlas by offset.

The Claims Group denied Atlas's claim for reimbursement of the $3,400.00, on the
grounds that Atlas should have taken steps to protect the household goods in its
warehouse and was negligent for not doing so. Atlas argues that its warehouse was


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'Z-219766-39, Mar. 16, 1995.