[Title 32 CFR 751]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 32 - NATIONAL DEFENSE]
[Subtitle A - Department of Defense (Continued)]
[Chapter Vi - DEPARTMENT OF THE NAVY]
[Subchapter E - CLAIMS]
[Part 751 - PERSONNEL CLAIMS REGULATIONS]
[From the U.S. Government Printing Office]
32NATIONAL DEFENSE52002-07-012002-07-01falsePERSONNEL CLAIMS REGULATIONS751PART 751NATIONAL DEFENSEDepartment of Defense (Continued)DEPARTMENT OF THE NAVYCLAIMS
PART 751--PERSONNEL CLAIMS REGULATIONS--Table of Contents
Subpart A--Claims Against the United States
Sec.
751.1 Scope of subpart A.
751.2 Claims against the United States: In general.
751.3 Authority.
751.4 Construction.
751.5 Definitions.
751.6 Claims payable.
751.7 Claims not payable.
751.8 Adjudicating authorities.
751.9 Presentment of claim.
751.10 Form of claim.
751.11 Investigation of claim.
751.12 Computation of award.
751.13 Payments and collections.
751.14 Partial payments.
751.15 Reconsideration and appeal.
751.16-751.20 [Reserved]
Subpart B--Demand On Carrier, Contractor, or Insurer
751.21 Scope of subpart B.
751.22 Carrier recovery: In general.
751.23 Responsibilities.
751.24 Notice of loss or damage.
751.25 Types of shipments and liability involved.
751.26 Demand on carrier, contractor, or insurer.
751.27 Preparation and dispatch of demand packets.
751.28 Assignment of claimants rights to the government.
751.29 Recoveries from carrier, contractor, or insurer.
751.30 Settlement procedures and third party responses.
751.31 Common reasons for denial by carrier or contractor.
751.32 Forwarding claims files for offset action.
751.33 Unearned freight packet.
751.34 GAO appeals.
751.35 Forms and instructions.
Authority: 5 U.S.C 301; 10 U.S.C. 939, 5013, and 5148; E.O. 11476, 3
CFR, 1969 Comp., p. 132; 32 CFR 700.206 and 700.1202.
Source: 57 FR 5055, Feb. 12, 1992, unless otherwise noted.
Subpart A--Claims Against the United States
Sec. 751.1 Scope of subpart A.
Subpart A of this part prescribes procedures and substantive bases
for administrative settlement of claims against the United States
submitted by Department of the Navy (DON) personnel and civilian
employees of the naval establishment.
Sec. 751.2 Claims against the United States: In general.
(a) Maximum amount payable. The Military and Civilian Employees'
Personnel Claims Act (Personnel Claims Act), 31 U.S.C. 3701, 3702, and
3721, provides that the maximum amount payable for any loss or damage
arising from a single incident is limited to $40,000.00. Claims for
losses occurring prior to 31 October 1988 are limited to $25,000.00.
(b) Additional instructions. The Judge Advocate General of the Navy
may issue additional instructions or guidance as necessary to give full
force and effect to this section.
(c) Preemption. The provisions of this section and the Personnel
Claims Act are preemptive of other claims regulations. Claims not
allowable under the Personnel Claims Act may, however, be allowable
under another claims act.
(d) Other claims. Claims arising from the operation of a ship's
store, laundry, dry cleaning facility, tailor shop, or cobbler shop
should be processed in accordance with NAVSUP P487.
Sec. 751.3 Authority.
The Personnel Claims Act provides the authority for maximum payment
up to $40,000.00 for loss, damage, or destruction of personal property
of military personnel or civilian employees incident to their service.
The Act provides for the recovery from carriers, warehouse firms, and
other third parties responsible for such loss, damage, or destruction.
No claim may be paid unless it is presented in writing within 2 years of
the incident giving rise to the claim.
Sec. 751.4 Construction.
The provisions of this section and the Personnel Claims Act provide
limited compensation to service members and civilian employees of the
DON for loss and damage to personal property incurred incident to
service. This limited compensation is not a substitute for private
insurance. Although not every loss may be compensated under the
[[Page 408]]
Personnel Claims Act, its provisions shall be broadly construed to
provide reasonable compensation on meritorious claims. Adjudications
must be based on common sense and the reasoned judgment of the claims
examiner giving the benefit of realistic doubt to the claimant.
Sec. 751.5 Definitions.
(a) Proper claimants--(1) Members of the DON. All Navy and Marine
Corps active duty members and reservists on active duty for training
under Federal law whether commissioned, enrolled, appointed, or
enlisted. A retired member may only claim under this Act if loss or
damage occurred while the claimant was on active duty or in connection
with the claimant's last movement of personal property incident to
service.
(2) Civilian employees of the Navy. Federal employees of the naval
establishment paid from appropriated funds. This term does not include
Red Cross employees, USO personnel, and employees of Government
contractors (including technical representatives).
(3) Claims by nonappropriated-fund employees. Claims by employees of
Navy and Marine Corps nonappropriated-fund activities for loss, damage,
or destruction of personal property incident to their employment will be
processed and adjudicated in accordance with this enclosure and
forwarded to the appropriate local nonappropriated-fund activity which
employs the claimant for payment from nonappropriated-funds.
(4) Separation from service. Separation from the service or
termination of employment shall not bar former military personnel or
civilian employees from filing claims or bar designated officers from
considering, ascertaining, adjusting, determining, and authorizing
payment of claims otherwise falling within the provision of these
regulations when such claim accrued prior to separation or termination.
(b) Improper claimants. Insurers, assignees, subrogees, vendors,
lienholders, contractors, subcontractors and their employees, and other
persons not specifically mentioned as proper claimants.
(c) Unusual occurrence. Serious events and natural disasters not
expected to take place in the normal course of events. Two different
types of incidents may be considered unusual occurrences: those of an
unusual nature and those of a common nature that occur to an unexpected
degree of severity. Examples of unusual occurrences include structural
defects in quarters, faulty plumbing maintenance, termite or rodent
damage, unusually large size hail, and hazardous health conditions due
to Government use of toxic chemicals. Examples of occurrences that are
not unusual include potholes or foreign objects in the road, ice and
snow sliding off a roof onto a vehicle, and tears, rips, snags, or
stains on clothing. Claims that electrical or electronic devices were
damaged by a power surge may be paid when lightning has actually struck
the claimant's residence or objects outside the residence, such as a
transformer box, or when power company records or similar evidence shows
that a particular residence or group of residences was subjected to a
power surge of unusual intensity. In areas subject to frequent
thunderstorms or power fluctuations, claimants are expected to use surge
suppressors, if available, to protect delicate items such as computers
or videocassette recorders.
(d) Personal property. Property including but not limited to
household goods, unaccompanied baggage, privately owned vehicles
(POV's), mobile homes, and boats.
(e) Intangible property. Property that has no intrinsic marketable
value such as bankbooks, checks, promissory notes, non-negotiable stock
certificates, bonds, baggage checks, insurance policies, money orders,
and travelers checks.
(f) Vehicles. Includes automobiles, motorcycles, mopeds, utility
trailers, camping trailers, trucks, mounted camper bodies, motor homes,
boats, boat trailers, bicycles, and aircraft. Mobile homes and other
property used as dwelling places are not considered vehicles.
Sec. 751.6 Claims payable.
Claims for loss, damage, or destruction of property may be
considered as
[[Page 409]]
set out below if possession of the property was reasonable and useful
under the circumstances and the loss did not result from the negligence
of the claimant.
(a) Transportation and storage losses. (1) Incurred during
transportation under orders, whether in possession of the Government,
carrier, storage warehouse, or other Government contractor.
(2) Incurred during travel under orders, including temporary duty.
(3) Incurred during travel on a space available basis on a military
aircraft, vessel, or vehicle.
(4) Do-it-yourself (DITY) moves. In certain circumstances, loss of
or damage to property during a DITY move is compensable. Claimants,
however, are required to substantiate the fact of loss or damage in
shipment. Claimants who do not prepare inventories have difficulty
substantiating thefts. In addition, unless evidence shows that something
outside the claimant's control caused the damage, breakage is presumed
to be the result of improper packing by the claimant. For example, if a
claimant's truck is rear-ended by a drunk driver during a DITY move, it
is out of claimant's control. If the claimant can substantiate that he
was free from negligence, he can file a claim for damages to his
household goods.
(5) Shipment or storage at the claimant's expense. The shipment or
storage is considered Government-sponsored if the Government later
reimburses the claimant for it. The Government, however, will not
compensate a claimant for loss or damage that occurs while property is
being shipped or stored at the claimant's expense, even if the
Government reimburses the claimant for the shipment or storage fees. The
reason for this is that there is no contract, called a Government Bill
of Lading (GBL), between Government and the carrier. In such cases the
claimant must claim against the carrier.
(b) Losses at assigned quarters or other authorized places. Damage
or loss caused by fire, explosion, theft, vandalism, lightning, flood,
earthquake, and unusual occurrences. Losses due to theft may only be
paid if the claimant took reasonable measures to safeguard the property
and the theft occurred as a result of a forced entry. Claimants are
expected to secure windows and doors of their barracks, quarters, wall
lockers, and other storage areas. Claimants are expected to store
valuables in a secure area within their barracks, quarters, and storage
areas. Claimants are also expected to take extra measures to protect
cash, valuable jewelry, and similar small, easily pilferable items.
Normally, such items should be kept in a locked container within a
secured room. It is also advisable that the locked container be large
enough that it is not convenient for a thief to carry off. Bicycles
located at quarters or on base must be secured to a fixed object.
Overseas housing is considered assigned quarters for claimants who are
not local inhabitants.
(c) Vehicle losses. (1) Incurred while a vehicle is used in the
performance of military duty, if such use was authorized or directed for
the convenience of the Government, provided the travel did not include
commuting to or from the permanent place of duty, and did not arise from
mechanical or structural defect of the vehicle. There is no requirement
that the loss be due to fire, flood, hurricane, or other unusual
occurrence, or to theft or vandalism. As a general rule, however, travel
is not considered to be for the convenience of the Government unless it
was pursuant to written orders authorizing use for which the claimant is
entitled to reimbursement. The claimant must be free from negligence in
order to be paid for a collision loss. Travel by the claimant to other
buildings on the installation is not considered to be under orders for
the convenience of the Government. Travel off the installation without
written orders may only be deemed to be for the convenience of the
Government if the claimant was expressly directed by his superior to use
POV to accomplish the mission. The issuance of written orders after the
fact raises the presumption that travel was not for the convenience of
the Government. The maximum payment of $2,000.00 authorized by the
Allowance List-Depreciation Guide still applies to loss of or damage to
vehicles and contents. This maximum does not apply to DITY moves.
[[Page 410]]
(2) Incurred while a vehicle is shipped at Government expense,
provided the loss or damage did not arise from mechanical or structural
defect of the vehicle during such shipment. Damage caused during
shipment at the claimant's expense or while the vehicle is being moved
to or from the port by an agent of the claimant is not compensable.
(3) Incurred while a vehicle is located at quarters or other
authorized place of lodging, including garages, carports, driveways,
assigned parking spaces, if the loss or damage is caused by fire, flood,
hurricane, theft, or vandalism, or other unusual occurrence. Vandalism
is damage intentionally caused. Stray marks caused by children playing,
falling branches, gravel thrown by other vehicles, or similar
occurrences are not vandalism. The amount payable on vandalism claims is
limited to $2,000.00.
(4) Incurred while a vehicle is located at places other than
quarters but on a military installation, if the loss or damage is caused
by fire, flood, hurricane, theft, or vandalism, or other unusual
occurrence. ``Military installation'' is used broadly to describe any
fixed land area, wherever situated, controlled, and used by military
activities or the Department of Defense (DOD). A vehicle properly on the
installation should be presumed to be used incident to the claimant's
service. A vehicle that is not properly insured or registered in
accordance with local regulations is not properly on the installation. A
vehicle left in a remote area of the installation that is not a
designated long-term parking area for an undue length of time is
presumed not to be on the installation incident to service.
(5) Theft of property stored inside a vehicle. Claimants are
expected to lock doors and windows. Neither the passenger compartment
nor the trunk of a vehicle is a proper place for the long-term storage
of property unconnected with the use of the vehicle. The passenger
compartment of a vehicle does not provide adequate security, except for
very short periods of time for articles that are not of high value or
easily pilferable. Car covers and bras are payable if bolted or secured
to the vehicle with a wire locking device.
(6) Rental vehicles. Damage to rental vehicles is considered under
paragraphs of the Joint Federal Travel Regulations (JFTR), rather than
as a loss incident to service.
(d) Mobile homes and contents in shipment. Claims for damage to
mobile homes and contents in shipment are payable unless the damage was
caused by structural or mechanical defects (see Sec. 751.12(g) below on
mobile homes).
(e) Borrowed property (including vehicles). Loss or damage to
borrowed property is compensable if it was borrowed for claimant's or
dependent's own use. A statement will be provided by the owner of the
property attesting to the use of the property by the claimant.
(f) Clothing and articles being worn. Repairs/replacement of
clothing and articles being worn while on a military installation or in
the performance of official duty may be paid if loss is caused by fire,
flood, hurricane, theft, or vandalism, or other unusual occurrence. This
paragraph shall be broadly construed in favor of compensation, but see
Sec. 751.5(c) for the definition of unusual occurrence. Articles being
worn include hearing aids, eyeglasses, and items the claimant is
carrying, such as a briefcase.
(g) Personal property held as evidence or confiscated property. If
property belonging to the victim of a crime is to be held as evidence
for an extended period of time (in excess of 2 months) and the temporary
loss of the property will work a grave hardship on the claimant, a claim
for the loss may be considered for payment. This provision will not be
used unless every effort has been made to determine whether secondary
evidence, such as photographs, may be substituted for the item. No
compensation is allowed to a person suspected of an offense for property
seized from that same person in the investigation of that offense. This
also applies to property a foreign government unjustly confiscates or an
unjust change in a foreign law that forces surrender or abandonment of
property.
(h) Theft from possession of claimant. Theft from the person of the
claimant is reimbursable if the theft occurred by use of force,
violence, or threat to do
[[Page 411]]
bodily harm, or by snatching or pickpocketing, and at the time of theft
the claimant was either on a military installation, utilizing a
recreation facility operated or sponsored by the Department of Defense
or any agency thereof, or in the performance of official duty. The theft
must have been reported to appropriate police authorities as soon as
practicable, and it must have been reasonable for the claimant to have
had on his person the quality and the quantity of the property allegedly
stolen.
(i) Property used for the benefit of the Government. Compensation is
authorized where property is damaged or lost while being used in the
performance of Government business at the direction or request of
superior authority or by reason of military necessity.
(j) Money deposited for safekeeping, transmittal, or other
authorized disposition. Compensation is authorized for personal funds
delivered to and accepted by military and civilian personnel authorized
by the commanding officer to receive these funds for safekeeping,
deposit, transmittal, or other authorized disposition, if the funds were
neither applied as directed by the owner nor returned to the owner.
(k) Fees--(1) For obtaining certain documents. The fees for
replacing birth certificates, marriage certificates, college diplomas,
passports, or similar documents may be allowed if the original or a
certified copy is lost or destroyed incident to service. In general,
compensation will only be allowed for replacing documents with a raised
seal that are official in nature. No compensation will be allowed for
documents that are representative of value, such as stock certificates,
or for personal letters or records.
(2) Estimate fees. An estimate fee is a fixed cost charged by a
person in the business of repairing property to provide an estimate of
what it would cost to repair property. An estimate fee in excess of
$50.00 should be examined with great care to determine whether it is
reasonable. A person becomes obligated to pay an estimate fee when the
estimate is prepared. An estimate fee should not be confused with an
appraisal fee, which is not compensable (see Sec. 751.7). A reasonable
estimate fee is compensable if it is not going to be credited toward the
cost of repair. If it is to be credited toward the cost of repair, it is
not compensable regardless of whether the claimant chooses to have the
work done. When an estimate fee is claimed, the file must reflect
whether the fee is to be credited.
Sec. 751.7 Claims not payable.
(a) Losses in unassigned quarters in the United States. Claims for
property damaged or lost at quarters occupied by the claimant within the
United States that are not assigned or otherwise provided by the
Government.
(b) Currency or jewelry shipped or stored in baggage. Claims for
lost money, currency, or jewelry shipped or stored in baggage are not
payable. Coin or paper money included in collections is payable only if
listed on an inventory prepared at origin.
(c) Enemy property or war trophies. This includes only property that
was originally enemy property or a war trophy that passed into the hands
of a collector and was then purchased by a claimant.
(d) Unserviceable or Worn-Out Property.
(e) Loss or Damage to Property to the Extent of any Available
Insurance Coverage as Set Forth in Sec. 751.26 of this part.
(f) Inconvenience or loss of use. Expenses arising from late
delivery of personal property, including but not limited to the expenses
for food, lodging, and furniture rental, loss of use, interest, carrying
charges, attorney's fees, telephone calls, additional costs of
transporting claimant or family members, time spent in preparation of
claim, or cost of insurance are not compensable. While such claims do
not lie against the Government, members should be referred to the
Personal Property Office for assistance in filing their inconvenience
claims against the commercial carriers (NAVSUP Publication 490,
Transportation of Personal Property).
(g) Items of speculative value. Theses, manuscripts, unsold
paintings, or a similar creative or artistic work done by the claimant,
friend, or a relative is limited to the cost of materials only. The
value of such items is speculative.
[[Page 412]]
Compensation for a utilitarian object made by the claimant, such as a
quilt or bookcase, is limited to the value of an item of similar
quality.
(h) Loss or damage to property due to negligence of the claimant.
Negligence is a failure to exercise the degree of care expected under
the circumstances that is the proximate cause of the loss. Losses due,
in whole or in part, to the negligence of the claimant, the claimant's
spouse, child, houseguest, employee, or agent are not compensable.
(i) Business property. Losses of items acquired for resale or use in
a private business are not compensable. If property is acquired for both
business and personal use, compensation will not be allowed if business
use is substantial, or is the primary purpose for which the item was
purchased, or if the item is designed for professional use and is not
normally intended for personal use.
(j) Motor vehicles. Collision damage is not payable unless it meets
the criteria for payment as property used for the benefit of the
Government as established in Sec. 751.6(c)(1).
(k) Violation of law or directives. Property acquired, possessed, or
transported unlawfully or in violation of competent regulations or
directives. This includes vehicles, weapons, or property shipped to
accommodate another person, as well as property used to transport
contraband.
(l) Sales tax. Sales taxes associated with repair or replacement
costs will not be considered unless the claimant provides proof that the
sales tax was actually paid.
(m) Appraisal fees. An appraisal, as distinguished from an estimate
of replacement or repair, is defined as a valuation of an item provided
by a person who is not in the business of selling or repairing that type
of property. Normally, claimants are expected to obtain appraisals on
expensive items at their own expense.
(n) Quantities of property not reasonable or useful under the
circumstances are not compensable. Factors to be considered are
claimant's living conditions, family size, social obligations, and any
particular need to have more than average quantities, as well as the
actual circumstances surrounding the acquisition and loss.
(o) Intangible Property, such as Bankbooks, Checks, Promissory
Notes, Stock Certificates, Bonds, Bills of Lading, Warehouse Receipts,
Baggage Checks, Insurance Policies, Money Orders, and Traveler's Checks
are not Compensable.
(p) Property Owned by the United States, Except where the Claimant
is Responsible to an Agency of the Government other than the DON.
(q) Contractual coverage. Losses, or any portion thereof, that have
been recovered or are recoverable pursuant to contract are not
compensable.
Sec. 751.8 Adjudicating authorities.
(a) Claims by Navy personnel. (1) The following are authorized to
adjudicate and authorize payment of personnel claims up to $40,000.00:
(1) The Judge Advocate General;
(ii) Deputy Judge Advocate General;
(iii) Any Assistant Judge Advocate General;
(iv) The Deputy Assistant Judge Advocate General (Claims and Tort
Litigation); and
(v) Commanding officers of Naval Legal Service Offices.
(2) The Staff Judge Advocate attached to Naval Supply Center,
Oakland is authorized to adjudicate and pay claims up to $25,000.00.
(3) The Staff Judge Advocate attached to Naval Station, Panama Canal
is authorized to adjudicate and pay claims up to $10,000.00.
(4) The following are authorized to adjudicate and authorize payment
of personnel claims up to $5,000.00:
(i) Officers in charge of Naval Legal Service Office Detachments;
(ii) The Staff Judge Advocate attached to Naval Station, Keflavik;
and
(iii) Any personnel attached to a Naval Legal Service Office when
specifically designated by the commanding officer of that Naval Legal
Service Office.
(5) Any individual, when personally designated by the Judge Advocate
General, may be authorized to adjudicate and authorize payment of
personnel claims up to any delegated amount, not to exceed $40,000.00.
(b) Claims by Marine Corps personnel. (1) The following individuals
are authorized to adjudicate and authorize
[[Page 413]]
payment of personnel claims up to $40,000.00:
(i) Commandant of the Marine Corps;
(ii) Deputy Chief of Staff, Manpower and Reserve Affairs Department;
(iii) Director, Human Resources Division;
(iv) Head, Personal Affairs Branch;
(v) Deputy Head, Personal Affairs Branch;
(vi) Head, Personnel Claims Section; and
(vii) Any individual, when personally designated by the Commandant
of the Marine Corps, may be authorized to adjudicate and authorize
payment of personnel claims up to any delegated amount, and not to
exceed $40,000.00.
(2) The following individuals are authorized to adjudicate and
authorize payment of personnel claims up to $25,000.00:
(i) Head, Adjudication Unit;
(ii) Head, Carrier Recovery Unit; and
(iii) Head, Administration Unit.
Sec. 751.9 Presentment of claim.
(a) General. A claim shall be submitted in writing and, if
practicable, be presented to the claims office or personal property
office serving the installation where the claimant is stationed, or
nearest to the point where the loss or damage occurred. If submission in
accordance with the foregoing is impractical under the circumstances,
the claim may be submitted in writing to any installation or
establishment of the Armed Forces which will forward the claim to the
appropriate Navy or Marine Corps claims office for processing. To
constitute a filing under this regulation, a claim must be presented in
writing to one of the military departments. Claims that are incomplete
will not be refused and shall be logged in as received. Claimants
submitting such claims, however, shall be informed in writing that
properly completed forms or necessary substantiation must be received
within a fixed period of time (normally 30 days), otherwise the claim
will be denied or paid only in the amount substantiated.
(b) Statute of limitations. A claim must be presented in writing to
a military installation within 2 years after it accrues. This
requirement is statutory and may only be waived if a claim accrues
during armed conflict, or armed conflict intervenes before the 2 years
have run, and good cause is shown. In this situation, a claim may be
presented not later than 2 years after the end of the armed conflict. A
claim accrues on the day the claimant knows or should know of the loss.
For losses that occur in shipment of personal property, normally the day
of delivery or the day the claimant loses entitlement to storage at
Government expense (whichever occurs first) is the day the claim
accrues. If a claimant's entitlement to Government storage terminates,
but the property is later delivered at Government expense, the claim
accrues on delivery. In computing the 2 years, exclude the first day
(day of delivery or incident) and include the last day. If the last day
falls on a non-workday, extend the 2 years to the next workday.
(c) Substantiation. The claimant is responsible for substantiating
ownership or possession, the fact of loss or damage, and the value of
property. Claimants are expected to report losses promptly. The greater
the delay in reporting a loss, the more substantiation the claimant is
expected to provide.
(1) Obviously damaged or missing inventory items that are not
reported at delivery. Claimants are expected to list missing inventory
items and obvious damage at time of delivery. Claimants who do not
should be questioned. Obviously some claimants will simply not notice
readily apparent damage. If, however, the claimant cannot provide an
explanation or lacks credibility, payment should be denied based on lack
of evidence that the item was lost or damaged in shipment.
(2) Later-discovered shipment loss or damage. A claimant has 70 days
to unpack, discover, and report loss and damage that is not obvious at
delivery. In most cases, loss and damage that is discovered later and
reported in a timely manner should be deemed to have been incurred in
shipment.
(3) Damage to POV's in shipment. Persons shipping POV's are expected
to list damage on DD Form 788 (Private Vehicle Shipping Document for
Automobile) when they pick up the vehicle. Obvious external damage that
is not listed is not payable. Damage the claimant could reasonably be
expected
[[Page 414]]
not to notice at the pickup point should be considered if the claimant
reports the damage to claims personnel within a short time, normally a
few days, after arriving at the installation.
(4) Credibility. Most claimants are honest. Most claimants
objectively attempt to claim only what is due them. These persons are
entitled to the presumption that what they list is honest, although it
may not be correct. Some claimants lack credibility and their claims
require careful scrutiny. Factors that indicate a claimant's credibility
is questionable include amounts claimed that are exaggerated in
comparison with the cost of similar items, insignificant or almost
undetectable damage, very recent purchase dates for most items claimed,
and statements that appear incredible. Such claimants should be required
to provide more evidence than is normally expected.
(5) Inspections. Whenever a question arises about damage to
property, the best way to determine a proper award is to examine the
item closely to determine that nature of the damage. For furniture,
undersurfaces and the edges of drawers and doors should be examined to
determine whether the material is solid hardwood, fine quality veneer
over hardwood, veneer over pressed wood, or other types of material. If
the inspection is conducted at the claimant's quarters, the general
quality of property should be determined. Claimants should routinely be
directed to bring in vehicles and small broken items of value such as
figurines for inspection, and inspections should be conducted on all
large claims. Observations by repairmen and transportation inspectors
are very valuable, but on occasion, claims personnel must go out of the
office and inspect items themselves. Such inspections are necessary to
reduce the number of reconsiderations and fraudulent claims and are
invaluable in enabling claims personnel to understand the facts in many
situations.
Sec. 751.10 Form of claim.
The claim should be submitted on DD Form 1842 (Claim for Personal
Property) accompanied by DD Form 1844 (List of Property). If DD Forms
1842 and 1844 \1\ are not available, any writing will be accepted and
considered if it asserts a demand for a specific sum and substantially
describes the facts necessary to support a claim cognizable under these
regulations. The claim must be signed by a proper claimant (see
Sec. 751.5) or by a person with a power of attorney for a proper
claimant. A copy of the power of attorney must be included with the
claim.
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\1\ Copies of these forms may be obtained by contacting the claims
office or personal property office serving the installation where the
claimant is stationed, or nearest to the point where the loss or damage
occurred.
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Sec. 751.11 Investigation of claim.
Upon receipt of a claim filed under the Personnel Claims Act, the
claim shall be stamped with the date and receiving office, and be
referred to a claims investigating officer. The investigating officer
shall consider all information and evidence submitted with the claim and
shall conduct such further investigation as may be necessary and
appropriate.
Sec. 751.12 Computation of award.
The Judge Advocate General will periodically publish an Allowance
List-Depreciation Guide specifying rates of depreciation and maximum
payments applicable to categories of property. The Allowance List-
Depreciation Guide will be binding on all DON claims personnel. The
value of the loss is determined and adjusted to reflect payments,
repairs, or replacement by carriers or insurers, or lost potential
insurance or carrier recoveries.
(a) Repair of items. For items that can be economically repaired,
the cost of repair or an appropriate loss in value is the measure of the
loss. The cost of repair may be the actual cost, as demonstrated by a
paid bill, or reasonable estimated costs, as demonstrated by an estimate
of repair prepared by a person in the business of repairing that type of
property.
(1) Loss of value (LOV)--(i) Minor damage not worth repairing. An
LOV, rather than replacement cost, should be awarded when an item
suffers minor
[[Page 415]]
damage that is not economical to repair but the item remains useful for
its intended purpose. An LOV is particularly appropriate when the item
is not of great value and has preexisting damage (PED). An LOV is also
appropriate to compensate claimants for minor damage, such as a chip or
surface crack to a figure or knickknack. For example, if an inexpensive,
fiberboard coffee table with extensive PED is scratched, repair of the
scratch would exceed the value of the table. Under the circumstances,
LOV is appropriate.
(ii) Damage to upholstered furniture. If damage can be repaired
imperceptibly by cleaning or reweaving, the claimant is only entitled to
repair cost. If repairs would be somewhat noticeable but the damage is
to an area not normally seen, repair costs plus an LOV would be
appropriate. Alternatively, if repairs would be somewhat noticeable but
the item is of no great value and has already suffered PED, repair costs
and LOV would be appropriate even if the damage is in an obvious area.
If, however, repairs would be so noticeable as to destroy the usefulness
of the item, the item should be reupholstered or replaced. What is
noticeable will depend on the nature and value of the item, and the
nature of the damage, and claims personnel should exercise sound
judgment to avoid being too lenient or too harsh.
(iii) Cosmetic damage to nondecorative items. LOV should also be
awarded to compensate claimants for cosmetic damage to items that were
not purchased for purposes of display or decoration. For example, the
casing of a washing machine is dented. The washing machine is not
decorative in nature and still functions perfectly. An LOV, rather than
replacement of the washing machine or the casing, is the appropriate
measure of the claimant's loss.
(2) PED to repairable items. PED is damage to an item that predates
the incident giving rise to a claim. PED is most commonly identified by
the use of symbols on household goods shipment inventories. Whenever PED
is listed on an inventory, claims personnel must determine whether the
PED did in fact exist and whether the cost of repairing the item
includes repairing PED. The fact that a claimant signed the inventory
that listed PED is conclusive evidence that PED did exist unless the
member has taken written exceptions on the inventory to the carrier's
description of PED. These findings are essential for recovery purposes.
Often inspecting the item or calling the repairman who prepared the
estimate is the only way to make an effective determination.
(i) Estimates that do not include repair of PED. If the estimate
does not include repair of PED, even if PED is listed on the inventory,
no deduction should be made. This fact should be recorded on the
chronology sheet and on carrier recovery documents.
(ii) Estimates that include repair of PED. If repair of PED is
included in the estimate, the percentage attributable to repair of PED
is deducted.
(3) Mechanical defects. The Personnel Claims Act only provides
compensation for losses incurred incident to service. Damage resulting
from a manufacturer's defect or from normal wear and tear is not
compensable. Damage to the engine or transmission of an old vehicle
during shipment is probably due to a mechanical defect. Internal damage
to appliances, such as old televisions, is also often due to a
mechanical defect, particularly when their is no external damage to the
item. Claims for internal damage to small appliances that are not
normally repaired, such as toasters or hair dryers, should be assessed
based on damage to other items in the carton and the shipment, the age
of the item, the honesty of the claimant, and whether there are loose
parts inside. If the evidence suggests rough handling caused the damage,
a claim for the item should be paid. Internal damage to larger items
such as televisions or stereos should be evaluated by a repairman.
Evidence that suggests rough handling, such as smashed boards, provides
a basis for payment. Evidence that suggests a fault in the item, such as
burned-out circuits, does not. Deterioration because an item in storage
was not used for a long time, rather than because the item was
mishandled or the conditions of storage were improper, is also
considered due to a mechanical defect.
[[Page 416]]
(4) Wrinkled clothing. Clothing wrinkled in shipment presents
special problems. Normally, unless the wrinkling is so severe as to
amount to actual damage, the cost to press wrinkles out of clothing
after a move is not compensable. The mere fact that clothing was
``wadded up'' or ``used as packing material'' is not in itself
sufficient. The wrinkling must be such that professional pressing is
necessary to make the clothing usable. This determination will depend on
the wrinkling and the nature of the material.
(5) Wet and mildewed items. A claimant has a duty to mitigate
damages by drying wet items to prevent further deterioration. Items that
have been wet are not necessarily damaged and claimants who throw them
away have difficulty substantiating that a loss has occurred. Although a
deeply seated mildew infestation is almost impossible to remove
completely, items lightly infested can often be cleaned.
(b) Replacement of items. A claimant is entitled to the value of
missing and destroyed items. An item that has sustained damage is
considered destroyed if it is no longer useful for its intended purpose
and the cost of repairing it exceeds its value. Value is measured in the
following ways:
(1) Similar used items. If there is a regular market for used items
of that particular type, the loss may be measured by the cost of a
similar item of similar age. Prices obtained from industry guides or
estimates from dealers in this type of property are acceptable to
establish value. There is a regular market on used cars and the value of
a used automobile is always measured according to the N.A.D.A. Official
Car Guide rather than the depreciated replacement cost. Similarly, the
Mobile Home Manufactured Housing Replacement Guide may be used to value
a destroyed mobile home. Where there is no regular market in a
particular type of used item, however, estimates from dealers in
``collector's items'' should be avoided.
(2) Depreciated replacement cost. This is the normal measure of a
claimant's loss. A catalog or store price for a new item similar in size
and quality is depreciated using the Allowance List-Depreciation Guide
to reflect wear and tear on the missing or destroyed item. The
replacement cost for identical items--particularly decorative items--
should be used whenever the item is readily available in the local area,
but a claimant who is eligible to use the Navy Exchange (NEX) and the
NEX Mail Order Catalog should not be allowed a higher replacement cost
of an item, such as a television, from a specialty store when the NEX
carries an item comparable in size, quality, and features from another
manufacturer.
(3) ``Fair and reasonable'' (F&R) awards. A fair and reasonable
award should be used sparingly when other measures would compensate the
claimant appropriately. Overuse of such awards impedes carrier recovery
and ``F&R'' should never be used when a more precise measure of damages
is available. An F&R award for a missing or destroyed item should
reflect the value of an item similar in quality, description, age,
condition, and function to the greatest extent possible. An F&R award
for a damaged item should reflect either the amount a firm would charge
for repair or the reduced value to the greatest extent possible.
Whenever such an award is made, the basis for the award should be
explained on the chronology sheet, in the comments block of DD Form 1844
(List of Property), or in a separate memorandum. A fair and reasonable
award may be considered in the following instances:
(i) The item is obsolete and a simple deduction of a percentage for
obsolescence is not appropriate.
(ii) The claimant cannot replace the item in the local area.
(iii) The claimant cannot replace the item at any cost.
(iv) Repair costs or replacement costs are excessive for the item
and an LOV is not appropriate.
(v) The claimant has substantiated a loss in some amount but has
failed to substantiate a loss in the amount claimed.
(c) Depreciation. The Personnel Claims Act is only intended to
compensate claimants for the fair market value of their loss. Except in
unusual cases, a used item that has been lost or destroyed is worth less
than a new item of the same type. The price of a
[[Page 417]]
new replacement item must be depreciated to award the claimant the value
of the lost or destroyed item. Average yearly and flat rates of
depreciation have been established to determine the fair value of used
property in various categories. These rates are listed in the Allowance-
List Depreciation Guide. The listed depreciation rate should be adjusted
if an item has been subjected to greater or lesser wear and tear than
normal or if the replacement cost the claimant provides is for a used
item rather than a new one. Yearly depreciation is not taken during
periods of storage and normally no depreciation is taken on repair costs
or on replacement cost for items less than 6 months old, excluding the
month of purchase and the month the claim accrued (but see
Sec. 751.12(c)(3)).
(1) Depreciating replacement parts. No depreciation should be taken
on replacement parts for damaged items unless these are parts separately
purchased or normally replaced during the useful life of these items.
The replacement cost for these latter items should be depreciated. For
example, the glass top to a table is not normally replaced during the
useful life of the table and should not be depreciated.
(2) Depreciating fabric for reupholstery. Fabric is normally
replaced during the useful life of upholstered furniture. When
upholstered furniture is reupholstered because the damage is too severe
to be repaired and an LOV is not appropriate, the cost of new fabric is
depreciated at a rate of 5 percent per year. If the item has been
reupholstered since it was purchased, depreciation is measured from the
date the item was last reupholstered, rather than from the date the item
was originally purchased. Labor costs are allowed as claimed. If the
estimate does not list separate costs for fabric and labor, the labor
costs may be assumed to be 50 percent of the total bill.
(3) Rapidly depreciating items. Tires, most clothing items, and most
toys rapidly lose their value, as the high depreciation rate for these
items reflects. Depreciation should be taken on such items even when
they are less than 6 months old. As a rule of thumb, half of the normal
yearly or flat rate depreciation should be taken on such items when they
are between 3 and 6 months old at the time of loss.
(4) Obsolescence. Even though depreciation is not taken during
periods of storage, obsolescence should be claimed on those items that
have lost value because of changes in style or technological
innovations.
(5) Military uniforms. Normally, no depreciation should be taken on
military uniforms. Depreciation, however, should be taken on military
uniform items that are being phased out or that belong to persons
separating from the service. Socks and underwear are not considered
military uniform items.
(d) Salvage value. Whenever a claimant has been fully compensated
for a destroyed item that still has some value, the claimant has the
option of either retaining the item and having the claims office deduct
an amount for the salvage value, or turning the item over to the
Government or to the carrier if the carrier will fully reimburse the
Government.
(1) Turn-in to the Government. On all claims, except CONUS domestic
shipments, if the claimant does not choose to retain the items and
accepts a reduction in the amount paid on the claim for salvage value,
the claims office will require the claimant to turn them into a disposal
unit designated by the Personal Property Office. Normally, the amount
that the Government may obtain from selling such items is very low. If
the claims office determines that the salvage value is less than $25.00,
the claimant may be advised to dispose of the items by other means,
either by throwing the item away or by turning it over to a charitable
organization. Claimants may also be directed to make alternative
disposition of items that have been refused by the designated disposal
unit. This alternate disposition must be noted on the chronology sheet
that is kept as part of the claims file. Claims personnel will not
divert such items to personal use or use them to furnish Government
offices. In determining whether an item has salvage value, the size of
the item and the distance the claimant must travel to turn it in should
be considered. A claimant must
[[Page 418]]
make his own arrangements to transport salvageable items prior to
payment. Claims personnel should ask the claimant's command to make
transportation available to assist the claimant in appropriate cases,
particularly when the item is large or bulky. Sound discretion prohibits
requiring a claimant living far from a designated disposal unit to turn
in an item of relatively slight value.
(2) Turn-in to the carrier. On CONUS domestic shipments, the carrier
may choose to pick up items for which it will fully reimburse the
Government. Pursuant to a Joint Military-Industry Memorandum on Salvage,
items that are hazardous to keep around, such as mildewed items or
broken glass (except items such as figurines and crystal with a per item
value of more than $50.00), may be disposed of as the claimant chooses.
Claimants must retain other items for a maximum of 120 days from the
date of delivery to allow the carrier to pick them up. Pursuant to this
memorandum of understanding, the carrier has until the end of the
inspection period or 30 days after receipt of the demand, whichever is
greater, to identify such items. Claims offices must identify files in
which the carrier is entitled to salvage and must process these claims
for recovery action within 30 days so that the claimant does not dispose
of salvageable items before the end of the period allotted for carrier
pick-up.
(3) Maximum allowances. If the claimant will not be fully
compensated for an item because a maximum allowance is applied, he will
not be required to turn in the item.
(e) Standard abbreviations. The claims examiner's intent should be
clear and unmistakable to anyone reviewing the remarks section of DD
Form 1844. The following standardized abbreviations are used in
completing the remarks section. Other abbreviations should not be used.
Whenever one or more of these abbreviations will not adequately explain
how the claimant has been compensated, a brief explanation should be
inserted in the remarks section, in the comments section on the bottom
of DD Form 1844, or on the chronology sheet that is kept in each claims
file.
(1) AC: Amount claimed. The amount claimed was awarded to the
claimant. This abbreviation is not used if the claimant has presented an
estimate of repair.
(2) AGC: Agreed cost of repairs. The claimant did not present an
estimate but instead, after discussing the matter with claims personnel,
entered an amount that represents the claimant's guess as to how much it
would cost to repair the damaged item. The claims office may accept this
amount as a fair estimation of the cost of repair based on the amount of
damage, the value of the item, and the cost of similar repairs in the
area. A claimant may be allowed up to $50.00 as an AGC without an
inspection and between $50.00 and $100.00 if claims personnel have
inspected the item. The use of AGC is an integral part of small claims
procedures.
(3) CR: Carrier recovery. The claimant was paid this amount by the
carrier for the item. The payment is recorded in the remarks column, and
the total carrier payment is deducted at the bottom of DD Form 1844 in
the same manner as insurance recovery.
(4) D: Depreciation. Yearly depreciation was taken on the destroyed
or missing item in accordance with the appropriate depreciation guide in
effect at the time of the loss. Deviations from standard rates must be
explained.
(5) DV: Depreciated value. A claimant's repair costs exceeded the
value of the item, so the depreciated value was awarded instead.
Whenever a claimant claims a repair cost that is very high, relative to
the age and probable replacement cost, the replacement cost should be
obtained and the depreciated value determined.
(6) ER: Estimate of repair. The claimant provided an estimate of
repair that was used to value the loss. If multiple estimates were
provided, they should be numbered and referred to as exhibits.
(7) EX: Exhibit. When numerous documents have been provided to
substantiate a claim, they should be numbered and referred to as
exhibits.
(8) FR: Flat rate depreciation. Flat rate depreciation was taken on
an item in accordance with the Depreciation Guide in effect at the time
of the loss.
[[Page 419]]
Deviations from the normal rate must be explained.
(9) F&R: Fair and reasonable. A fair and reasonable award was made
(see Sec. 751.12(b)(3)).
(10) LOV: Loss of value. An LOV was awarded (see Sec. 751.5(a)(1)).
(11) MA: Maximum allowance. The adjudicated value, listed in the
``Amount Allowed'' column, exceeds a maximum allowance. The amount in
excess of the maximum allowance is subtracted at the bottom of the DD
Form 1844.
(12) N/P: Not payable. The item is not payable. The reason for this
comment should be noted (i.e., ``not substantiated'').
(13) OBS: Obsolescence. A percentage was deducted for obsolescence.
(14) PCR: Lost potential carrier recovery. A deduction was made for
lost PCR.
(15) PED: Preexisting damage. A deduction was made for PED.
(16) PP: Purchase price. The purchase price was used to value the
loss. Normally, the purchase price is not an adequate measure of the
claimant's loss. If, however, the claimant used the replacement cost of
a dissimilar item or otherwise failed to substantiate the replacement
cost, a recent purchase price may be used at the discretion of claims
personnel, if a true replacement cost is not available.
(17) NEX: Navy Exchange replacement cost. A replacement from the NEX
was used.
(18) RC: Replacement cost. A replacement cost was used. The store or
catalog from which the replacement cost was taken should be listed.
(19) SV/N: Item has no salvage value. A destroyed item was
determined to have no salvage value.
(20) SV/R: Salvage value, item retained. A destroyed item was
determined to have salvage value and the claimant chose to keep the
item. Accordingly, a deduction was made for the salvage value.
(21) SV/T: Salvage value, item turned in. A destroyed item was
determined to have salvage value and the claimant chose not to keep the
item. If the item is part of a CONUS domestic shipment, the claimant
must keep it for the carrier to pick up. Otherwise, the claimant must
turn the item in prior to payment on the claim.
(f) Sets. Normally, when component parts of a set are missing or
destroyed, the claimant is only entitled to the replacement cost of the
missing or destroyed components. In some instances, however, a claimant
would be entitled to replacement of the entire set or to an additional
LOV. Some claimants will assert that all of the items in a room are part
of a set. Pieces sold separately, however, are ordinarily not considered
parts of a set, and pieces that merely complement other items, such as a
loveseat purchased to complement a particular hutch, are never
considered part of a set. When a component part of a set is missing or
destroyed and cannot be replaced with a matching item, or has to be
repaired so that it no longer matches other component parts of the set,
the following rules apply:
(1) The set is no longer useful for its intended purpose. When a set
is no longer useful for its intended purpose because component parts are
missing or destroyed the entire set may be replaced. Note that several
firms will match discontinued sets of china and crystal and that
replacement of the set is not authorized if replacement items can be
thus obtained. Generally, with china and crystal the value of the set as
a whole is not destroyed unless more than 25 percent of the place
settings are unusable. Exceptions may be made if the claimant can
demonstrate a particular need for a certain number of place settings
because of family size or social obligations. In those rare instances
when an entire set is replaced, the claimant will be required to turn in
undamaged pieces.
(2) The set is still useful for its intended purpose. When missing
pieces cannot be matched and there is measurable decrease in the value
of the set, but the set is still useful for its intended purpose, the
claimant is awarded the value of the missing pieces plus an amount for
the diminution in value of the set as a whole. The amount awarded as an
LOV will vary depending on the exact circumstances.
(3) Mattresses and upholstered furniture are recovered. A mattress
and box spring set is covered during normal
[[Page 420]]
use. Such sets are still useful for their intended purpose if one piece
of the set has to be recovered in a different fabric. No award will be
made for the undamaged piece. When one piece of a set of upholstered
furniture suffers damage that cannot be repaired or recovered in
matching fabric, recovering the entire set or recovering the damaged
piece plus LOV should be considered. Factors to take into account
include the value of the set, PED to the set, the nature of the current
damage, and the extent to which the claimant's furniture is already
mismatched.
(g) Mobile homes. Mobile homes present special problems. Most mobile
homes, particularly larger ones, are not built to withstand the stress
of multiple long moves. While the Mobile Home One-Time Only rate
solicitation program, effective 1 November 1987, may have reduced the
incidence of loss and damage by encouraging carriers to use extra axles
when necessary, mobile home shipments can result in enormous,
uncompensated losses for servicemembers and present unusual difficulties
for claims adjudicators. Because the risk is so great, claims offices
must coordinate with their servicing transportation offices to ensure
both that servicemembers shipping mobile homes are advised of the risk
and of their responsibilities, and that the transportation office does
not authorize shipment of a mobile home that has not been placed in a
fit condition to be shipped.
(1) Transportation counseling prior to shipment. Servicemembers
should be advised of the following:
(i) They are responsible for placing the mobile home and its tires,
tubes, frames, and other parts in fit condition to ship and for loading
the mobile home to withstand the stresses of normal transportation. They
will not be compensated for any damage that results either from a latent
defect in the construction of the mobile home (except when the carrier
is aware of the defect and the servicemember is not) or from their
failure to place the mobile home in fit condition to ship.
(ii) They are responsible for paying for necessary repairs en route.
Such repairs can amount to several hundred or even several thousand
dollars, and some mobile homes have been left in storage at the
servicemember's expense hundreds of miles from destination because the
owner could not pay for necessary repairs.
(iii) They are responsible for resealing the roof and
weatherproofing the mobile home after delivery. The cost of this is not
compensable, nor is any damage caused by the servicemember's failure to
have it done.
(iv) They are responsible for removing obstructions, grading the
roadway, or otherwise preparing the site to make it accessible for the
carrier's equipment at both origin and destination.
(v) Because of the risk that damage will result for which they
cannot be compensated, servicemembers should strongly consider
purchasing private insurance coverage. A claimant usually must purchase
separate insurance for property shipped inside the mobile home and most
mobile home carriers will sell some sort of insurance coverage for
damage to the mobile home itself. Often, when a mobile home has been
moved repeatedly, the risk of uncompensated loss is so high that the
servicemember should consider selling the home rather than attempting to
ship it.
(2) Inspection Prior to Shipment. Transportation personnel should
inspect the home prior to shipment in all instances. All defects should
be recorded. In particular:
(i) A mobile home should not be shipped with a servicemember's
furniture and other household goods inside. The maximum safe weight of
appliances and additional property is very low. An overweight mobile
home tends to blow tires and break apart during shipment. Servicemembers
should be advised long before shipment that they will have to make other
arrangements for shipping such items at their own expense.
(ii) A mobile home should never be shipped with defects in the steel
frame or tow hitch.
(iii) The condition of all tires should be checked and recorded.
Some carriers submit huge bills for ``blown'' tires during shipment.
(iv) Structural changes to the interior of the home, particularly
those
[[Page 421]]
that involve cutting through beams, should be examined closely and a
civil engineer should be called in to render an opinion. Frequently, it
is not safe to ship mobile homes in which the claimant has altered the
interior framing.
(3) Latent Defects. Many carriers will attempt to escape liability
by attributing all damage to latent manufacturing defects. A loss due to
such a defect, like a loss due to any other mechanical defect, is not
considered incident to service. When an engineer's report or other
evidence shows that damage was indeed caused by a defect rather than by
the carrier's failure to take the necessary care, the following rules
apply:
(i) If both the carrier and the claimant knew or should have known
of the defect, and if the claimant took no corrective action and had the
mobile home shipped anyway, the claim is not payable.
(ii) If the carrier knew or should have known of the defect, and the
claimant could not reasonably have been expected to know of it, the
claim is payable and liability should be pursued against the carrier.
(iii) If neither the claimant nor the carrier could reasonably be
expected to know of the defect, the claim is not payable.
(4) Substantiation of a claim. Prior to adjudication of such claims,
the mobile home should be inspected and the following evidence obtained,
if possible:
(i) DD Form 1800 (Mobile Home Shipment Inspection at Destination).
This document shows the condition of the home at origin prior to
shipment. This document is prepared by the Transportation Office (TO)
and is signed by the servicemember, the carrier's representative, and
the Government inspector. It is vital and a claim should not be paid
without it. At destination, damages noted at delivery should be
annotated and the form dated and signed by the driver and the
servicemember. Damages may be listed on this form or on the DD Form 1840
(Joint Statement of Loss or Damage at Delivery).
(ii) DD Form 1863 (Accessorial Services-Mobile Home). For shipments
after 1 November 1987, DD Form 1863 lists all services the carrier is
required to provide, including line-haul, payment of tolls,
overdimension charges, permits and licenses, provision of anti-sway
devices, axles with wheels and tires, temporary lights, and escort
services. All costs and services may not appear on the GBL. For
shipments prior to 1 November 1987, damages may also be listed on this
form.
(iii) DD Form 1840/1840R. Beginning 1 November 1987, later-
discovered damages must be listed on DD Form 1840R and dispatched to the
carrier within 75 days of delivery. Timely notice on mobile home
shipments differs slightly from such notice on other shipments. Item 306
of the carrier's rate solicitation provides that ``upon delivery by the
carrier, all loss of or damage to the mobile home shall be noted on the
delivery document, the inventory form, the DD Form 1800, and/or the DD
Form 1840. Late discovered loss or damage, including personal property
within the mobile home, will be noted on the DD Form 1840R not later
than 75 days following delivery and shall be accepted by the carrier as
overcoming the presumption of correctness of delivery receipt.''
(iv) DD Form 1412 (Inventory of Items Shipped in Housetrailer).
Prior to 1 November 1987, the servicemember prepared DD Form 1412. After
1 November 1987, the carrier is required to prepare this in coordination
with the servicemember.
(v) DD Form 1841. If a Government representative does not inspect
the mobile home at delivery, an inspection should be requested.
(vi) Driver's statement. The mobile home carrier should be requested
to provide (within 14 days) a statement from the driver of the towing
vehicle explaining the circumstances surrounding the damage as well as
detailed travel particulars. If the mobile home carrier does not
respond, the file should be so annotated. Such statements are often
self-serving and should be reviewed critically to determine whether the
carrier is attributing damage to a latent defect.
(vii) Owner's statement. The claimant should provide a statement
concerning the age of the mobile home, the date and place purchased, any
prior damage or repairs, all prior moves, and prior claims.
[[Page 422]]
(viii) Estimates of repair. When possible, the claimant should
obtain two estimates of repair from firms in the business of repairing,
rather than selling, mobile homes. Such estimates should list the
approximate value of the home before and after damage, a detailed
breakdown of the repairs needed and their cost, and the cause of damage.
(ix) Engineer's statement. Where the facts indicate the possibility
of a latent defect, the claimant should be assisted in obtaining a
statement from a qualified engineer or vehicle maintenance professional
with expertise in mobile homes explaining the cause of damage. The
claims office should coordinate in advance with facilities engineers or
with local reserve units with engineering expertise to provide such
inspection where possible.
(5) Compensable damage. In adjudicating the claim, the claimant may
be paid for loss of or damage to the mobile home except when the damage
is due to a latent defect, to the servicemember's failure to place the
home in fit condition to ship, or to the servicemember's failure to have
the roof resealed. The servicemember may also be compensated for the
reasonable cost of repair estimates provided by firms in the business of
mobile home repair and of opinions prepared by qualified engineers. The
claimant may not be compensated for services the carrier failed to
perform or performed improperly or for other incidental expenses. The
claimant should be referred to the transportation office for these. Such
services (listed on DD Form 1843 and the GBL correction notice) include:
(i) Escort or pilot services, ferry fees, tolls, permits,
overdimension charges, or taxes.
(ii) Storage costs or parking fees en route.
(iii) Expand charges and charges for anti-sway devices, brakes and
brake repairs, or adding or replacing axles, tubes, or tires.
(iv) Wrecker service.
(v)Connecting or disconnecting utilities.
(vi) Blocking, unblocking, or removing or installing skirting.
(vii) The cost of separating or reassembling and resealing a double-
wide mobile home.
(6) Carrier liability and attempted waivers. In the absence of
additional coverage, the carrier's maximum liability for personal
property shipped with the mobile home is $250.00. The carrier is fully
liable for damages to the mobile home itself. Carriers are also liable
for damage caused by third parties with whom they contract, such as
wrecker services. Some carriers may still try to obtain waivers, from
the servicemember. A waiver signed by the servicemember, however, is not
binding on the United States. The Navy is the contracting party and the
owner has not authority to sign a waiver agreement or any other document
purporting to exempt the carrier from the liability imposed under the
GBL.
Sec. 751.13 Payments and collections.
Payment of approved personnel claims and deposit of checks received
from carriers, contractors, insurers, or members will be made by the
Navy or Marine Corps disbursing officer serving the adjudicating
authority. Payments will be charged to funds made available to the
adjudicating authority for this purpose. Credit for collections will be
to the accounting data specified in Navy Comptroller Manual section
046370, paragraph 2 or in superseding messages, if applicable.
Sec. 751.14 Partial payments.
(a) Partial payments when hardship exists. When claimants need funds
to feed, clothe, or house themselves and/or their families as a result
of sustaining a compensable loss, the adjudicating authority may
authorize a partial payment of an appropriate amount, normally one-half
of the estimated total payment. When a partial payment is made, a copy
of the payment voucher and all other information related to the partial
payment shall be placed in the claim file. Action shall be taken to
ensure the amount of the partial payment is deducted from the
adjudicated value of the claim when final payment is made.
(b) Marine hardship payments. The Marine claimant's Transportation
Management Office (TMO) shall ensure
[[Page 423]]
compliance with all requirements of Sec. 751.14(a), and may request
authority for payment by message from the Commandant of the Marine Corps
(MHP-40).
(c) Effect of partial payment. Partial payments are to be subtracted
from the adjudicated value of the claim before payment of the balance
due. Overpayments are to be promptly recouped.
Sec. 751.15 Reconsideration and appeal.
(a) General. When a claim is denied either in whole or in part, the
claimant shall be given written notification of a the initial
adjudication and of the right to submit a written request for
reconsideration to the original adjudicating authority within 6 months
from the date the claimant receives notice of the initial adjudication
of the claim. If a claimant requests reconsideration and if it is
determined that the original action was erroneous or incorrect, it shall
be modified and, when appropriate, a supplemental payment shall be
approved. If full additional payment is not granted, the file shall be
forwarded for reconsideration to the next higher adjudicating authority.
The next higher adjudicating authority may be the commanding officer of
the Naval Legal Service Office if a properly delegated subordinate has
acted initially on the claim. For claims originally adjudicated by the
commanding offer, the files will be forwarded to the Judge Advocate
General for final action. The claimant shall be notified of this action
either by letter or by copy of the letter forwarding the file to higher
adjudicating authority. The forwarding letter shall include a synopsis
of action taken on the file and reasons for the action or denial, as
well as a recommendation of further action or denial.
(b) Files forwarded to JAG. For files forwarded to JAG in accordance
with Sec. 751.15(a), the forwarding endorsement shall include the
specific reasons why the requested relief was not granted and shall
address the specific points or complaints raised by the clamant's
request for reconsideration.
(c) Appeals procedure for claims submitted by Marine Corps
personnel. Where any of the Marine Corps adjudication authorities listed
in Sec. 751.8(b) fail to grant the relief requested, or otherwise
resolve the claim the satisfaction of the claimant, the request for
reconsideration shall be forwarded together with the entire original
file and the adjudicating authority's recommendation, to the Judge
Advocate General.
Secs. 751.16-751.20 [Reserved]
Subpart B--Demand On Carrier, Contractor, or Insurer
Sec. 751.21 Scope of subpart B.
Subpart B addresses the recovery process for loss or damage
occurring during the storage or transport of household goods and other
personal property for which military personnel and civilian employees
were paid under the provisions of 31 U.S.C. 3721. The authority for
pursuing recovery action is found at 31 U.S.C. 3711.
Sec. 751.22 Carrier recovery: In general.
(a) Responsibility. Recovery of amounts due for personal property
lost or damaged while in transit or in storage at Government expense is
a joint Personal Property Office/Naval Legal Service Office
responsibility. In order to establish liability and to effectively
pursue a recovery claim against a carrier, warehouseman, or other third
party, it is essential that all required action be accomplished in an
expeditious manner. Failure of the property owner or any Government
agent to exercise diligence in the performance of duties may render
collection of the claim impossible and thereby deprive the Government of
rightful revenue. Claims approving and settlement authorities will
ensure that all actions required of the property owner and naval
personnel are accomplished promptly.
(b) Elements of collection. There are four elements in the
successful assertion and collection of a recovery claim. They are:
(1) Proving that a transit loss occurred;
(2) Determining who had responsibility for the goods at the time of
the transit loss;
(3) Calculating the amount of damages; and
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(4) Pursuing the responsible party or parties vigorously.
Sec. 751.23 Responsibilities.
(a) Notice of loss. Claims office personnel must ensure that Notice
of Loss or Damage, DD Form 1840R, is properly completed and dispatched
to the liable third party or parties within 75 days of delivery of the
property.
(b) Counseling of claimant. Claims office personnel should
coordinate with the local personal property office to ensure proper
counseling regarding potential claim procedures.
(c) Documents. Claims office personnel must obtain from the claimant
or from the transportation office the following documents needed to
process recovery actions:
(1) A copy of the GBL or other document used for shipment or
storage.
(2) A copy of the inventory.
(3) A copy of the DD Form 1840 and DD Form 1840R.
(4) Where storage in transit was extended from 180 days to 270 days,
a copy of the authorization from the transportation office allowing this
extension at Government expense.
(5) Where storage converted from Government paid storage to storage
at owner's expense, a copy of the claimant's contract with the
warehouse.
(6) When necessary, a copy of DD Form 1164, Service Order for
Personal Property, from the transportation office.
(7) When necessary, DD Form 619-1, Statement of Accessorial Services
Performed, from the transportation office.
(d) Carrier inspection. Claims office personnel should inform
claimants that the carrier has the right to inspect damaged goods within
75 days of delivery, or 45 days of dispatch of DD Form 1840R, whichever
is later, and that damaged items must be held out for carrier inspection
during that period. Essential items such as washer, dryer, television
etc., may be repaired prior to that time if necessary.
(e) Repair estimates. Claims personnel must ensure that repair
estimates describe the specific location and damage claimed and that the
same damage is claimed on DD Form 1844, Schedule of Property and Claims
Analysis Chart. Repair estimates that merely note ``refinished'' or
``repaired'' are not acceptable.
(f) DD Form 1844. Claims personnel must ensure that DD Form 1844 is
properly completed with the nature and extent of the loss or damage to
each item fully described, the correct inventory numbers supplied, and
correct item weights utilized from the Military-Industry Table of
Weights (when these weights are required for the code of service
involved).
(g) Demands on third parties. Claims personnel must ensure that
written demands against appropriate third parties are prepared as
described in Sec. 751.26 and Sec. 751.27. No demand will be made where
it conclusively appears that the loss or damage was caused solely by
Government employees or where a demand would otherwise be clearly
improper under the circumstances. If it is determined that a demand is
not required, a brief written statement setting forth the basis for this
determination will be included on the chronology sheet. Pursuant to the
Joint Military-Industry Agreement on Claims of $25.00 or Less, claims of
$25.00 or less will not be pursued because administrative costs outweigh
recovery proceeds.
Sec. 751.24 Notice of loss or damage.
(a) Exceptions. The claimant is required to take exceptions and note
any loss of damage at the time of delivery on the DD Form 1840 (Joint
Statement of Loss or Damage at Delivery). Later discovered damage must
be noted on the DD Form 1840R (Notice of Loss or Damage) and delivered
to the claims office or Personal Property Office within 70 days of
delivery. Failure to take exceptions at delivery and note and report
later discovered damage will result in deduction on any lost potential
carrier recovery from payment of the claim. Failure to note on the DD
Form 1840 items missing at the time of delivery may result in denial of
claims for those items.
(b) DD Form 1840/1840R. The DD Form 1840/1840R is printed in carbon
sets of five with DD Form 1840 on the front side and DD Form 1840R on
the reverse side. DD Form 1840/1840R is provided by the carrier to the
member at delivery. Carriers were required to use this revised DD Form
1840/1840R beginning 15
[[Page 425]]
August 1988 for international shipments and 15 September 1988 for
domestic shipments. This is the only document the carriers will accept
for reporting loss and damage to household goods. The requirement to
list all know loss and damage at the time of delivery on the DD Form
1840 is a joint responsibility of the claimant and the carrier. If the
carrier fails to give the claimant a DD Form 1840 at the time of the
delivery, the carrier is liable for all damage and does not have to be
notified in the 75-day timeframe
(c) Military-Industry Memorandum of Understanding on Loss and Damage
Rules. The Military-Industry Memorandum of Understanding on Loss and
Damage Rules became effective in 1985 with the implementation of the new
DD Form 1840/1840R. This document should be thoroughly studied and
completely understood.
Sec. 751.25 Types of shipments and liability involved.
(a) Codes 1 and 2 (domestic including Alaska). Increased released
valuation, also referred to as ``Basic Coverage,'' became effective
within CONUS and Alaska on 1 April 1987 for intrastate shipments
(shipments within a single State), and on 1 May 1987 for interstate
shipments (shipments from one State to another). For Codes 1 and 2
shipments picked up after these dates, the carrier's released valuation
(the carrier's maximum liability for loss and damage) increased from
$.60 per pound per article to $1.25 multiplied by the net weight of the
shipment ($2.50 for shipments to and from Alaska). For Codes 1 and 2
shipments picked up prior to these dates, carrier liability remains at
$.60 per pound per article and is calculated the same as for Code 4
shipments. There are also two higher levels of coverage available in
which the owner pays the difference between the basic coverage and the
higher level requested: High or higher increased released valuation
(Option 1) and full replacement protection (Option 2). These higher
carrier released valuation rates only apply to Codes 1 and 2 shipments
and they do not affect the liability of a non-temporary storage (NTS)
warehouse which remains at $50.00 per line item.
(1) Increased Released Valuation (IRV). IRV is the basic valuation
for service Codes 1 and 2 and is fully paid by the Government. If the
claimant is due additional recovery money, the words ``claimant due
carrier recovery'' must be added on the claims file to ensure the
recovered amount is provided to the claimant if eligible. IRV is not
reflected on the GBL by an special language. For Codes 1 and 2 shipments
picked up after the effective dates mentioned above, the carrier's
released valuation is $1.25 multiplied by the new weight of the shipment
($2.50 multiplied times the net weight of the shipment for shipments to
and from Alaska). For example, if the weight of an IRV shipment moved
from Kansas to New York is 10,000 pounds, the most the carrier could be
held liable for would be $12,500 (10,000 pounds times $1.25=$12,500). If
the same shipment was moved from Alaska to New York, the maximum carrier
liability would instead be $25,000 (10,000 pounds times $2.50=$25,000).
(2) Higher Increased Released Valuation (Option 1). This type of
coverage may be purchased by an owner who desires protection for items
whose value exceeds a maximum allowance or for a shipment whose value
exceeds the statutory maximum. If the claimant is due additional
recovery money, the words ``claimant due carrier recovery'' must be
added in the claims file. Option 1 must be annotated on the original
GBL. A GBL correction notice is acceptable only if the carrier or his
agent has notice of the correction before pick-up. Option 1 may be
listed in block 27 or block 30 either as a lump sum, such as ``Option 1-
-$30,000,'' or as a multiple, such as ``Option 1--$3.00 times the net
weight.'' The carrier's maximum liability is whatever higher valuation
the claimant places on the shipment. For example: The owner of a 10,000
pound shipment requests Option 1 coverage of $30,000.00 and has this
listed on the GBL. The carrier's maximum liability is $30,000.00. Under
basic coverage, the carrier's maximum liability for this shipment would
only be $12,500.00. The claimant must initially file a claim with the
carrier. The Government will only accept a claim if the carrier denies
the claim, if delay would
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cause hardship, or if the carrier fails to satisfactorily settle the
claim within 30 days. The claim is adjudicated in the normal fashion,
applying depreciation and maximum allowances. Demand is then made on the
carrier for the full value of the item lost or damaged. When recovery is
effected, the Government keeps an amount equal to that paid to the
claimant and disperses the remaining recovery to the claimant.
(3) Full Replacement Protection (Option 2). This type of coverage
may be purchased by an owner who desires protection for items whose
value exceeds a maximum allowance, for a shipment whose value exceeds
the statutory maximum, or because the claimant does not wish to have the
replacement cost of destroyed or missing items depreciated to their fair
market value. The minimum coverage available under Full Replacement
Protection is $21,000.00 or $3.50 times the net weight of the shipment,
whichever is greater. A member who chooses this coverage must initially
file a claim with the carrier, allowing the carrier the right to repair
or replace items. The Government will only accept a claim if the carrier
denies the claim, if delay would cause hardship, or if the carrier fails
to satisfactorily settle the claim within 30 days. If a claim is
submitted to the Government, the claim is adjudicated normally, applying
depreciation and maximum allowances. The claimant should be informed
that any additional amount will be forwarded after recovery action is
effected against the carrier. Option 2 must be annotated on the original
GBL. A GBL correction notice is acceptable only if the carrier or his
agent receives notice of the correction before pick-up. Option 2 may be
listed in block 27 or block 30 either as a lump sum, such as ``Full
Replacement Protection--$50,000.00,'' or as a multiple, such as ``Full
Replacement Protection--$3.50 times the net weight.'' The carrier's
maximum liability is the higher valuation the claimant places on the
shipment. For example: The owner of a 10,000 pound shipment requests
full replacement protection of $3.50 times the net weight of the
shipment and has this listed on the GBL. The carrier's maximum liability
is $35,000.00 (10,000 pounds times $3.50=$35,000.00). Under basic
coverage, the carrier's maximum liability for this shipment would only
be $12,500.00.
(4) Calculating liability on IRV, Option 1, and Option 2 shipments.
(i) Under IRV and Option 1, the carrier's maximum liability for loss or
damage to a single item is limited to the repair cost or depreciated
replacement cost of the item. Under Option 2, the carrier's maximum
liability for a single item is the repair cost or the undepreciated
replacement cost of the item. The carrier's maximum liability for the
entire claim is limited to the released valuation, which is either the
lump sum declared by the owner or the net weight of the shipment times
the applicable multiplier. The net weight of the shipment is normally
listed in block 4 of DD Form 1840 (block 3 of DD Form 1840 dated
September 84). If the net weight is missing, it should be obtained from
the transportation office.
(ii) In completing the carrier liability section of DD Form 1844,
ignore the Joint Military-Industry Table of Weights. Assert the amount
adjudicated on each item for which the carrier is liable in the carrier
liability column. Where the Government payment was limited by
application of a maximum allowance (or by depreciation on full
replacement cost claims), assert the full, substantiated value. Total
the amounts for which the carrier is liable in the carrier liability
column. If this total exceeds the maximum carrier liability for the
entire claim, the maximum carrier liability should be entered on DD Form
1843 as the amount demanded. Do not, however, change the total of the
amounts for which the carrier is liable on the DD Form 1844.
(iii) If the amount the claimant receives from the Government is
limited by application of a maximum allowance (or by depreciation on
full replacement protection claims) leaving the claimant with an
uncompensated loss, the claimant may be due reimbursement from recovery
money after recovery is effected on the claim. Claimants with
uncompensated losses who have basic coverage are only entitled to
reimbursement from recovery money if the amount recovered exceeds the
amount paid by the Government (unless the loss was in excess of the
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statutory maximum). Claimants with uncompensated losses who purchased
Option 1 or Option 2 are entitled to reimbursement up to the value of
their additional coverage. Such files should be marked: ``claimant due
carrier recovery.'' The claimant should be informed that recovery from
the carrier is dependent on the amount and quality of the substantiation
the claimant provided, and that the actual recovery may be less than
anticipated. The claimant should further be informed that considerable
time will elapse before recovery is effected and reimbursement made.
Such claims should be processed for recovery action as expeditiously as
possible.
(b) Codes 4 and 6 (International and Hawaii). On Codes 4 and 6,
international GBL shipments, carrier liability is computed at $.60 per
pound multiplied by the weight of the article or carton as prescribed by
the Joint Military-Industry Table of Weights. In cases where the entire
shipment is lost or damaged, liability will be computed on the net
weight of the shipment times $.60 per pound. The net weight of the
shipment may be obtained from the origin transportation office.
(c) Codes 5 and T (International and Hawaii). (1) A Code 5 shipment
is the movement of household goods in Military Traffic Management
Command (MTMC) approved door-to-door shipping containers (wooden boxes)
and where a carrier provides line-haul service from origin residence to
a military ocean terminal. The Government, through the Military Sealift
Command (MSC), provides ocean transportation to the designated port of
discharge, and the carrier provides line-haul service to the destination
residence.
(2) A Code T shipment is the movement of household goods where the
carrier provides containerization at origin and transportation to the
designated Military Airlift Command (MAC) terminal. MAC provides
terminal services at both origin and destination, and air transportation
to a designated MAC terminal. The carrier provides transportation to the
destination residence.
(3) On Code 5 and T shipments, it is often difficult to decide
whether the Government or the carrier was in actual custody of the
shipment at the time of loss or damage. In order to reduce liability
disputes in such situations, a 50-percent compromise agreement between
industry and the military has been reached.
(4) When the 50-percent compromise is appropriate or applicable, the
DD Form 1844 is prepared in the normal fashion utilizing weights
indicated in the Military-Industry Table of Weights multiplied by $.60
per pound. Two different sums should be listed for carrier liability at
the bottom of the DD Form 1844, the amount of liability due under the
50-percent compromise and the full amount that will be offset if carrier
fails to pay, e.g., ``$100.00 Code T, $200.00 Full Liability.'' This
same computation should be reflected in the ``amount of claim'' box on
DD Form 1843 (Demand on Carrier/Contractor). If a carrier refuses to
make a satisfactory settlement or fails to make a timely response to the
demand, the carrier's full liability will be collected.
(d) Codes 7, 8, and J (Unaccompanied Baggage Shipments). Gross
Weight Rules. Government payment to the carrier for transportation of
unaccompanied baggage (Codes 7, 8, and J) is based upon gross weight of
the shipment. Unless the inventory is prepared as a ``Proper Household
Goods Descriptive Inventory,'' computation of carrier liability for loss
or damage incurred in a Code 7, 8, or J shipment will also be based upon
gross weight. Gross weight is defined as the total weight of all
articles, including necessary packing materials and packing containers.
The shipping container is the external crate (tri-wall or other
Government approved container) into which individual articles and/or
packing cartons are placed. For the majority of claims, liability will
be asserted on gross weight of the container.
(2) Baggage shipments prepared using a ``Proper Household Goods
Descriptive Inventory.'' The Joint Military/Industry Table of Weights
will apply to Code 7, 8, or J unaccompanied baggage shipments if the
inventory has been prepared as a ``Proper Household Goods Descriptive
Inventory,'' in accordance with Paragraph 54 of the Tender of Service
for Personal Property Household Goods and Unaccompanied Baggage (DOD
4500.34-R, appendix A). A
[[Page 428]]
properly prepared inventory should reflect the size of each individual
carton, give a general description of carton contents, and note
preexisting damage. The complete inventory, not just a portion, must
have been prepared as a proper household goods inventory. If an
inventory is only partially prepared as a proper household goods
descriptive inventory, gross weight will be used.
(e) Local moves and NTS. There are basically two types of NTS
shipments: A direct delivery from NTS by the same company that stored
the property and a delivery from NTS which was picked up at the
warehouse by a GBL carrier. Direct deliveries of household goods from
NTS are often erroneously construed as local moves. It is sometimes
difficult to tell the difference between the two since a shipment
delivered from NTS by the warehouseman is usually also a short distance
(local) move. The type of contract involved determines whether or not
the shipment is considered a local move, a direct delivery from NTS, or
a carrier delivery picked up from NTS. These distinctions are important
since different liability is involved.
(1) Local move. A local move is a shipment performed under a local
contract that authorizes property to be moved from one residence to
another within a specified area (usually a move from off base to on
base, or the reverse). The contract for a local move is the purchase
order prepared by the transportation office which lists the services
required of the carrier in accordance with the provisions of the Federal
Acquisition Regulation (FAR). The purchase order usually includes
packing and picking up the goods at origin residence or from storage,
transporting the goods within a designated distance, and delivering and
unpacking the goods at destination. All these services are performed
under the authority of one purchase order and will usually be
accomplished the same day or within a few days of pickup. Timely notice
must exist in order to pursue carrier recovery and liability is usually
based on a released valuation of $.60 per pound per article. The Joint
Military/Industry Table of Weights is used to calculate liability. There
is no insurance coverage required on local contractors; if the local
contractor is no longer in business or bankrupt, the file may be closed.
(2) Direct delivery from NTS. In circumstances where one contractor
is responsible for pick-up, NTS, and delivery of the shipment, liability
for loss or damage is assessed against that carrier. Nontemporary
storage of household goods requires completion of DD Form 1164 (Service
Order for Personal Property) in accordance with the provisions of the
Basic Ordering Agreement (BOA). The ``handling-in'' portion of the
shipment is accomplished by issuance of the Initial Service Order, DD
Form 1164. The goods are usually stored for a period of 6 months to 4
years. The ``handling-out'' and post-storage services are accomplished
by a supplemental service order. These are usually long term storage,
short distance moves processed under the authority of at least two
documents: the initial service order and the supplemental service order.
The BOA states that the contractor shall be liable ``in an amount not
exceeding fifty dollars ($50.00) per article or package listed on the
warehouse receipt or inventory form'' (i.e., $50.00 per inventory line
item).
(3) Carrier delivery picked up from NTS. The NTS portion of the
shipment requires completion of an Initial Service Order, DD Form 1164,
to accomplish the ``handling-in'' of the goods into the warehouse for
storage, as prescribed by the provisions of the BOA. When storage is
terminated, the ``handling-out'' and post-storage services are
accomplished by issuance of a GBL in accordance with the tender of
service. The GBL may be issued to a different company or in some cases
to the same company that stored the goods. These are long-term storage,
long-distance moves processed under the authority of two documents: the
initial service order and the GBL. Liability is assessed entirely
against the delivering carrier at whatever rate is appropriate for the
code of service involved, unless the carrier prepares an exception sheet
(rider) noting damage or loss at the time the goods are picked up from
the warehouse. The exception sheet must be signed by a warehouse
representative.
[[Page 429]]
If a valid exception sheet exists, liability for items noted on the
exception sheet is assessed against the NTS warehouse at $50.00 per
inventory line item. An exception sheet should be prepared by the GBL
carrier who picks up the goods from NTS even if that carrier is the same
company that stored the goods. This is necessary in order to relieve the
carrier from liability as a carrier. If either the carrier alone, or
both the carrier and the NTS facility, fail to pay their proper
liability, the file is forwarded to the Naval Material Transportation
Office, (NAVMTO), Norfolk, Virginia for offset action.
(f) Direct Procurement Method (DPM). (1) A DPM move is a method in
which the Government manages the shipment from origin to destination.
Contracts are issued to commercial firms for packing, containerization,
local drayage, and storage services, or Government facilities and
employees provide these services. Separate arrangements are made with
carriers and separate documents are issued for each segment throughout.
DPM contractors are also known as packing and crating (P&C) contractors,
as local drayage contractors, or just as local contractors.
(2) GBL's for DPM shipments are usually only issued to motor freight
carriers.
(i) Block 3 on the GBL entitled ``service code'' will contain the
letters A, B, H, or V, followed by a second letter A, H, K, N, P, R, W,
X, or Y. These two letter codes identify the GBL as a DPM contract.
(ii) Block 18, ``consignee,'' and Block 19, ``from,'' on the GBL
contain the name and address of another carrier or transportation office
rather than the name and address of the claimant.
(iii) Block 27, ``description of shipment,'' on most GBL's contains
the statement, ``household goods released at a value of 10 cents per
pound per article.'' This refers to the motor freight carrier's
liability only. The origin and destination contractors' liability is
still $.60 per pound times the weight of the article or carton, as
indicated in the Joint Military/Industry Table of Weights.
(iv) If liability lies against the motor freight carrier, the term
``article'' is defined as the weight of each packed item, such as the
weight of a broken dish within a carton rather than the net weight of a
carton, as used against the origin and destination contractors.
Liability is computed against the motor freight carrier at a rate of
$.10 per pound times the weight of the article.
(3) Since 1 January 1981 the destination contractor has been held
liable for loss and damage unless it can prove that it is not at fault,
i.e., took exceptions prior to receipt of goods. The motor freight
carrier is liable for any damage or loss noted against it during its
portion of the move. If the motor freight carrier has noted specific
damage when it received the shipment, liability is charged against the
origin contractor at $.60 per pound times the weight of the article or
carton. Damage noted against the origin contractor or motor freight
carrier should be indicated on a valid shipping document and generally
involves distinct damage to or missing containers. These documents must
be signed by all parties involved in the transfer of the goods.
(4) The destination contractor must receive timely notice of loss or
damage via DD Form 1840/1840R and a demand packet. If exceptions were
taken against the origin contractor or motor freight carrier on a
transfer document, they should receive only demand packets.
(5) In determining destination or origin contractor's liability, the
term ``article'' has been defined as each shipping carton or container
and the contents thereof, less any exterior crate or shipping carton.
The net weight of each article (carton or box) packed within the
exterior crate or carton may be used to determine the contractor's
liability for a damaged or missing item originating out of that carton.
(6) Claims offices should obtain a copy of the DPM contract from the
local contracting office or transportation office in order to identify
which company has the DPM contract and verify the limits of the
liability clause. Contracts are awarded on a calendar-year basis.
(g) Mobile homes. Mobile home claims represent such a small
percentage of claims received that claims personnel
[[Page 430]]
are often unfamiliar with the requirements and documentation necessary
to process such claims. For an explanation of the adjudication of such
claims and the forms used to effect shipment, see Sec. 751.12(g) above.
(1) Carrier liability--(i) For damage to the mobile home. Carrier
liability for damage to a mobile home is generally the full cost of
repairs for damage incurred during transit. A mobile home carrier is
excused from liability when the carrier can introduce substantial proof
that a latent structural defect (one not detectable during the carrier's
preliminary inspection) caused the loss or damage.
(ii) For damage to contents. The carrier's liability for loss or
damage to household or personal effects inside the mobile home (such as
clothing and furniture. or furnishings which were not part of the mobile
home at the time it was manufactured) is limited to $250.00 unless a
greater value is declared in writing on the GBL. Under the Mobile Home
One-Time-Only (MOTO) rate system, effective for shipments after 1
November 1987 the owner no longer prepares his own inventory. Under the
MOTO system, the carrier in coordination with the owner is required to
prepare a legible descriptive inventory on DD Form 1412, Inventory of
Articles Shipped in House Trailer.
(iii) Agents of the mobile home carrier. If the shipment is
transferred to another mobile home carrier for transport, the first
carrier will continue to be shown on the GBL and is responsible for the
mobile home from pickup to delivery. The carrier is also responsible for
damage caused by third parties it engages to perform services such as
auxiliary towing and wrecking.
(iv) Water damage. Water damage to a double-wide or expando-type
mobile home is usually due to the carrier's failure to provide
sufficient protection against an unexpected rainstorm. Carriers will
often assert that this damage is due to an ``act of God'' and attempt to
avoid liability. It is, however, the carrier's responsibility to ensure
safe transit of the mobile home from origin to destination. Not only
should carriers be aware of the risk of flash floods and storms in
certain locales during certain seasons, but a carrier is supposed to
provide protective covering over areas of the mobile home exposed to the
elements. Carrier recovery should be pursued for water damage to these
types of mobile homes.
(v) Waivers signed by the claimant. The carrier may attempt to
escape liability by having the owner execute a waiver of liability. Such
waivers are not binding upon the United States.
(vi) Extensions of storage in transit (SIT). The extension of SIT
past 180 days is only applicable to household goods and holdbaggage
shipments. It is not applicable to the shipment of mobile homes. If a
mobile home remains in SIT past 180 days, storage is at the owner's
expense.
(2) Notice. Item 306 of the carrier's rate solicitation states that:
``Upon delivery by the carrier, all loss of or damage to the mobile home
shall be noted on the delivery document, the inventory form, the DD Form
1800, and/or the DD Form 1840. Late(r) discovered loss or damage,
including personal property within the mobile home, will be noted on DD
Form 1840R not later than 75 days following delivery and shall be
accepted by the carrier as overcoming the presumption of correctness of
delivery receipt.'' Notification to the carrier may be made on any of
the documents. Claims personnel will dispatch the DD Form 1840R in
accordance with Sec. 751.14.
(3) Preparation of demands. The carrier is liable for the full
amount of substantiated damage to the mobile home itself (less estimate
fees), plus up to $250.00 for loss or damage to contents (unless the
claimant purchased increased released valuation on the contents).
Prepare a demand for this amount. In addition to the DD Form 1843 and DD
Form 1844, the demand packet should include the following documents:
(i) DD Form 1800, Mobile Home Inspection Record;
(ii) DD Form 1863, Assessorial Services, Mobile Home;
(iii) DD Form 1840/1840R, Joint Statement of Loss or Damage at
Delivery/Notice of Loss;
(iv) DD Form 1412, Inventory of Items Shipped in House Trailer;
(v) DD Form 1841, Government Inspection Report;
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(vi) Driver's statement, from the driver of the towing vehicle;
(vii) Claimant's statement concerning previous moves;
(viii) Estimates of repair, preferably two, from firms in the
business of repairing mobile homes; and
(ix) Engineer's statement, or statement by other qualified
professionals.
(4) References. Chapter 3 and Appendix E of DOD 4500.34-R, pertain
to mobile home shipment and contain much valuable information. Another
source is NAVSUP 490, Chapter 10 ``Mobile Homes of Military Personnel.''
Sec. 751.26 Demand on carrier, contractor, or insurer.
(a) Carrier. When property is lost, damaged, or destroyed during
shipment under a GBL pursuant to authorized travel orders, the claims
investigating officer or adjudicating authority (whichever can more
efficiently perform the task) shall file a written claim for
reimbursement with the carrier according to the terms of the bill of
lading or contract. This demand shall be made against the last carrier
known to have handled the goods, unless the carrier in possession of the
goods when the damage or loss occurred is known. In this event, the
demand shall be made against the responsible carrier. If it is apparent
the damage or loss is attributable to packing, storing or handling while
in the custody of the Government, no demand shall be made against the
carrier.
(b) Marine Corps claimants. For Marine Corps claimants, the claims
investigating officer will prepare the claim against the carrier,
contractor, and/or insurer and will mail it (together with the DD Form
1842 claim package) to the Commandant of the Marine Corps (MHP-40), who
will submit and assume the responsibility of monitoring the claim
against the carrier.
(c) NTS warehousemen. Whenever property is lost, damaged, or
destroyed while being stored under a basic agreement between the
Government and the warehouseman, the claims investigating officer, or
appropriate Naval Legal Service Command (NLSC) activity, shall file a
written claim for reimbursement with the warehouseman under the terms of
the storage agreement.
(d) Insurer. When the property lost, damaged, or destroyed is
insured, the claimant must make a demand against the insurer for payment
under the terms of the insurance coverage within the time provided in
the policy. If the amount claimed is clearly less than the policy
deductible, no demand need be made. Failure to pursue a claim against
available insurance will result in reducing the amount paid on the claim
by the amount which could have been recovered from the insurer. When an
insurer makes a payment on a claim in which the Government has made a
recovery against the carrier or contractor, the insurer shall be
reimbursed a pro rated share of any money recovered.
Sec. 751.27 Preparation and dispatch of demand packets.
Demand on a carrier or contractor shall be made in writing on DD
Form 1843 (Demand on Carrier) with a copy of the adjudicated DD Form
1844 (Schedule of Property) attached.
(a) Demand packets. A demand is a monetary claim against a carrier,
contractor, or insurer, to compensate for loss or damage incurred to
personal property during shipment or storage. DD Form 1843 represents
the actual demand. The demand packet is a group of documents, stapled
together and sent to the liable third party. More than one demand packet
should be prepared when more than one party is deemed to be liable. Do
not use original documents. Demand packets should be mailed in official
DON envelopes. No demand packet should be prepared for claim files that
have been closed or when potential recovery is $25.00 or less. In those
cases the outside of file folders in the upper left-hand corner should
be marked ``CLOSED.'' A demand packet will include the following:
(1) DD Form 1843, Demand on Carrier/Contractor;
(2) DD Form 1844, Schedule of Property and Claim Analysis Chart;
(3) DD Form 1841, Government Inspection Report (if available);
(4) DD Form 1164, Service Order for Personal Property (when
applicable);
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(5) Copies of all repair estimates (translated from foreign
languages); and
(6) Copies of all other supporting documents deemed appropriate.
(b) Dispatch of demand packets. (1) The demand packets are directly
dispatched by the appropriate personal property office or the Naval
Legal Service Office to the third party.
(2) Privately Owned Vehicles (POV's). Demands for loss or damage to
POV's will not be made directly against ocean carriers operating under
contract with the MSC. After payment is made to the claimant, one copy
of the complete claim file will be forwarded directly to Commander, MSC.
Each file shall include the following:
(i) The payment voucher;
(ii) The completed personnel claim forms;
(iii) The estimated or actual cost of repair;
(iv) A document indicating the conditions of the items upon delivery
to the carrier; and
(v) a document indicating the forwarding condition of the POV upon
its return to Government control.
The letter of transmittal should identify the vessel by name,
number, and if available, the sailing date.
Sec. 751.28 Assignment of claimants rights to the government.
The claimant shall assign to the Government, to the extent of any
payment made on the claim, all rights and interest the claimant may have
against any contractor, carrier, or insurer or other party arising out
of the incident on which the claim is based. The claimant shall also
furnish such evidence as may be required to enable the Government to
enforce its claim. If the claimant refuses to cooperate, steps may be
taken to ensure return of monies paid on the item which the Government
is trying to collect.
Sec. 751.29 Recoveries from carrier, contractor, or insurer.
(a) Recoveries. If a claimant receives payment from the Government
under this instruction and also receives compensation from a carrier,
contractor, or insurer for the same loss, the Government shall collect
from the claimant the amount necessary to prevent the claimant from
being compensated twice for the same loss. If the amount payable on a
claim is less than the adjudicated value of the claim, excess recoveries
from carriers, and other third parties shall be paid to the member as
long as the total amount paid does not exceed the value of the claim as
adjudicated.
(b) Recovered property. When lost property is found, the claimant
may, at his option, accept all or part of the property and return the
full payment or a pro-rated share of the payment received from the
Government on the claim for the recovered property. Surrendered property
shall be disposed of under applicable salvage and disposal procedures.
Sec. 751.30 Settlement procedures and third party responses.
(a) Settlement procedures. In the interest of expeditious office
administration, correspondence to carriers and contractors should be
kept to a minimum. Normally, one rebuttal to a third party's denial of
liability is sufficient, unless the carrier or contractor raises new
arguments or provides new information.
(1) Checks from third parties. Accept checks for the amount demanded
from carriers and contractors. If a carrier or contractor forwards a
check for less than the amount demanded, review the carrier's arguments
for reducing liability to determine if they are acceptable. If the third
party's basis for reducing liability is acceptable in the light of all
evidence, deposit the check and dispatch the unearned freight letter, if
applicable. Mark the front upper left-hand corner of the file as
``CLOSED.''
(2) Third party offers of settlement. If a carrier or contractor
offers to settle the claim, review the carrier's arguments for reducing
liability to determine if they are acceptable. If the third party's
basis for reducing liability is acceptable in light of all evidence,
inform the carrier that the offer is accepted, but that offset action
will be initiated if a check for that amount is not received within 45
days. If a check
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in the amount acceptable to the Government is received, deposit it and
dispatch the unearned freight letter, if applicable. Mark the front
upper left-hand corner of the file as ``CLOSED.'' If a check in the
proper amount is not received within 45 days, send the request to
NAVMTO, Norfolk (or appropriate contract officer) for offset action (see
Sec. 751.32 of this part).
(3) Unacceptable third party checks and offers of settlement. If a
third party's basis for denying liability is not valid, respond to that
carrier or contractor. Return unacceptable checks. Explain the reasons
for not accepting the check or offer, and request the amount that is
justified under the circumstances in the light of all the evidence. If a
release was included, amend the release to the revised amount and sign,
date, witness, and return it. Warn the carrier or contractor that the
claim will be forwarded for offset action if a check for the amount
justified under the circumstances is not received within 45 days.
Suspend the file for 45 days and if a check in the proper amount is
received, deposit it and dispatch the unearned freight letter, if
applicable. If a check in the proper amount is not received within 45
days, request NAVMTO, Norfolk (or appropriate contract officer) to take
offset action.
(4) Third party denials of liability. Upon receipt, review the
carrier or contractor's basis for denying liability in the light of all
the evidence.
(i) Acceptable third party reasons for denial. Mark the front upper
left-hand corner of such files as ``CLOSED.''
(ii) Partially acceptable and unacceptable third party reasons for
denial. If the carrier or contractor's basis for denying liability is
acceptable only in part or is completely unacceptable, follow the
procedures in subparagraph (3) above, requesting the amount that is
justified under the circumstances in the light of all the evidence. If a
response is not received within 45 days, or if the third party's reply
is not responsive, request NAVMTO, Norfolk (or appropriate contract
officer) take offset action as described above.
(b) Depreciation. In determining payments to claimants, the
depreciation rates from the Allowance List--Depreciation Guide are used.
In determining third party liability, however, a different depreciation
guide, the Joint Military/Industry Depreciation Guide is used instead.
In most instances, the depreciation rates are the same in both guides,
and claims personnel are not required to consult the Joint Military/
Industry Depreciation Guide or alter the depreciation taken on items
prior to dispatching demands. If, however, a carrier or contractor
objects to the depreciation rate utilized for certain items, consult the
Joint Military/Industry Depreciation Guide and use the depreciation rate
found in that guide if it differs from the rate in the Allowance List-
Depreciation Guide.
Sec. 751.31 Common reasons for denial by carrier or contractor.
The following are common reasons given for denial of an entire
claim, or for individual items on a claim. Each reason for denial is
followed by a short discussion of the validity of such a denial.
(a) The carrier alleges that valid exceptions were made at the time
of pickup from the NTS facility. When a carrier provides an exception
sheet it contends was made at time of transfer, this exception sheet
must bear the signature of a representative of the NTS facility. Without
a signed exception sheet there is no evidence that the NTS facility was
made aware of these exceptions and given the opportunity to confirm or
deny the alleged condition of the items in question. The burden of proof
is on the carrier to provide the valid exception sheet and establish its
freedom from liability.
(b) The carrier denies liability for missing or damaged item packed
in cartons because it did not pack the shipment and the cartons did not
show outside damage. When a carrier accepts a shipment in apparent good
order, it is responsible for damage to packed items, unless it can prove
that the packing was improper and was the sole cause of the damage.
(c) The carrier contends that the mildew damage occurred in NTS and
not during its transport of the shipment. Mildew formation is more
likely to occur in NTS than in transport. Unsupported by evidence,
however, an allegation that mildew formation occurred during NTS
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does not rebut the established prima facie case of a carrier liability.
A carrier must prepare an exception sheet and note any mold or mildew
damage when the items were picked up from the NTS facility. The burden
of proof is on the carrier to show that it was free from negligence and
that the damage was due solely to the formation of mildew or mold during
the NTS storage.
(d) The carrier claims that damage is due to ``inherent vice.''
Although the carrier may allege that damage was due to ``inherent
vice,'' the mere allegation of ``inherent vice'' is insufficient to
relieve the carrier of liability. The burden of proof is on the carrier
to establish that an ``inherent vice'' existed and that it was the sole
cause of the damage claimed. Since the carrier can rarely establish this
burden of proof, denial due to ``inherent vice'' is seldom acceptable.
(e) The carrier contends that it was denied the right to inspect.
Often a carrier will state that it made several attempts to make an
inspection, but the shipper failed to keep the appointment. If such a
case exists, the proper procedure for the carrier to follow is to
contact the claims office for assistance in accomplishing the inspection
within a timely manner. A carrier's efforts to obtain the inspection
should be documented in the file by claims personnel. Lack of an
inspection alone, however, does not relieve the carrier of liability and
is insufficient to rebut a well-established prima facie case of
liability.
(f) The carrier denies liability on missing items because the items
do not appear on the new inventory made at pickup from the NTS facility.
When a carrier picks up a shipment from NTS and chooses to prepare a new
inventory, it must use identical or cross-referenced numbers. If an
article such as a chair or a lawnmower is missing, it must be indicated
as ``missing'' on the new inventory. Whether or not a new inventory is
made, an exception sheet must be prepared and the missing articles must
be noted thereon. To relieve the carrier of liability, both the new
inventory and the exception sheet must be signed by representatives of
the NTS facility and the carrier.
(g) The carrier denies liability due to ``act of God.'' An act of
God is an event that could not have been prevented by human prudence. It
is generally seen as an occurrence in which human skill or watchfulness
could not have foreseen the disaster. The burden of proof is on the
carrier to establish that an ``act of God'' existed and that it was the
sole cause of the damage claimed. Since the carrier can rarely establish
this burden of proof, denial due to an ``act of God'' is generally not
acceptable. The carrier cannot avoid liability if it has been negligent
in exposing the goods to potential danger or if it failed to take
reasonable steps to reduce the extent of the injury once the danger was
discovered.
(h) The carrier contends that the claimant's repair estimate is
excessive and that its own repair firm can do the job cheaper. A
claimant has the right to select a repair firm provided the cost is
reasonable and not in excess of the item's value. The carrier is liable
for the reasonable cost of repairing damaged merchandise that includes
labor, material, overhead, and other incidental expenses incurred in
reconditioning or putting the goods in salable condition. If the carrier
did not provide the claims office with an acceptable, lower estimate to
use in adjudicating the claim, and if the claimant's estimate is
reasonable, then the carrier is liable for the amount paid the claimant.
(i) The carrier contends that liability should have been predicated
on the agreed weight of a sofa and not a hide-a-bed. This argument only
applies when carrier liability is based on weight. At the time the
inventory is prepared, the carrier's driver must establish whether a
sofa is merely a sofa, or one that converts into a bed. Failure to
properly identify the item on the inventory does not relieve the carrier
of liability for the greater weight of a sofa bed.
(j) The carrier argues that it is not responsible for warpage, rust,
etc., due to climatic changes. This argument does not relieve a carrier
of liability unless the carrier offers substantial evidence to show that
the damages resulted solely from unusual circumstances beyond its
control, as with an ``act of God,'' or that it occurred while the
property was in the hands of another contractor, as reflected upon a
valid NTS exception sheet. The burden of
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proof is on the carrier to establish that the damage was not due to its
negligence and that circumstances beyond its control were the sole cause
of the loss. Because the carrier can rarely establish this, denial due
to ``climatic changes'' is rarely acceptable.
Sec. 751.32 Forwarding claims files for offset action.
(a) General. Claim files are forwarded with a recommendation for
offset action when 120 days have passed since a demand and a response
has not been received from the carrier or contractor. Files are also
forwarded for offset action when an impasse is reached. An impasse
occurs when legitimate efforts to collect the fully justified amount
demanded have reached a standstill and the carrier has no valid basis
for denial. Prior to forwarding files for offset action, claims
personnel must ensure that timely notice has been given, that all
necessary documents are included, and that the demand and any
correspondence were mailed to the proper carrier or contractor at its
correct address. When applicable, claims personnel must also ensure that
an unearned freight packet is included.
(b) Claim files forward to local contracting offices. Claims
forwarded to local contracting offices for offset action include claims
involving local moves and DPM shipments in which the origin and/or
destination contractor is determined to be liable. When the contractor
fails to reply to a demand within 120 days or fails to make an
acceptable offer, the file should be forwarded to the local contracting
office with a request for offset action.
(c) Unjustified denials and inadequate settlement offers by carrier
or contractor--(1) GBL carriers. If a GBL carrier or insurer has refused
to acknowledge or respond to a demand within a reasonable time (usually
30 days), if the claims investigating officer considers a valid claim to
have been denied or not adequate settlement offered, or if settlement
has been delayed beyond 120 days (see Sec. 751.32(a)), the claim shall
be forwarded to the NLSC activity serving the geographical location
recommending that set-off action be taken against the carrier or
contractor. The 120-day period begins to run on the date initial demand
is made on the carrier. The NLSC activity shall review the file and if
the carrier liability is correctly computed, forward a copy of the GBL,
copies of the DD Forms 1843 and 1844, SCAC code, and final demand on
carrier to the Commanding Officer, Naval Material Transportation Office,
Code 023, Bldg. Z-133-5, Naval Station, Norfolk, VA 23511 directing set-
off action against the carrier or contractor.
(2) Nontemporary warehousemen. If a warehouseman or insurer has
refused to acknowledge or respond to a claim within a reasonable time,
if the claims investigating officer considers a valid claim to have been
denied or no adequate settlement offered, or if settlement has been
delayed beyond 120 days, the claim shall be referred to the NLSC
activity serving the geographic location recommending set-off action be
taken against the contractor. The 120-day time period begins to run on
the date the initial demand was made. The NLSC activity shall review the
file and if the warehouseman's liability is correctly computed, forward
the file to the appropriate MTMC Regional Storage Management Office for
set-off.
Sec. 751.33 Unearned freight packet.
(a) Preparation. An unearned freight packet should be prepared when
the loss or destruction of an item in shipment is attributable to a GBL
carrier. Unearned freight packets should be addressed to the carrier,
and not to the agents of GBL carriers, NTS contractors, or other
contract movers. An unearned freight packet is required when a mobile
home is lost or completely destroyed. An unearned freight packet
includes:
(1) A Request For Deduction of Unearned Freight Charges;
(2) A copy of DD Form 1843;
(3) A copy of DD Form 1844; and
(4) A copy of the GBL.
(b) Dispatch. The unearned freight packet is not dispatched to the
NAVMTO, Norfolk until the carrier has paid its agreed liability or when
offset has been accomplished.
Sec. 751.34 GAO appeals.
(a) General. Sections 1 through 12 and 52 through 65 of Title 4, GAO
Manual,
[[Page 436]]
Policy and Procedures Manual for Guidance of Federal Agencies, and 4 CFR
parts 30-32 set forth procedures for carriers to appeal setoff action.
Before a carrier can appeal a setoff action to GAO, the command
requesting setoff action must make an administrative report to GAO.
(b) Procedures for appeals. (1) The carrier must request appeal from
the command requesting setoff action and request a GAO review.
(2) The command requesting setoff action will review the appeal and
if it is determined the setoff action was appropriate, will do an
administrative report and notify the carrier when this has been
accomplished.
(3) The administrative report and complete claims file will be
forwarded to the NLSC activity serving the geographic location for
review prior to forwarding to GAO.
(4) The complete claims package, including all correspondence with
the carrier, will then be forwarded to GAO.
(c) The administrative report and enclosures must support the setoff
action.
(d) GAO Manual. All NLSC activities have been provided a copy of a
manual published by the Claims Group General Government Division, U.S.
General Accounting Office entitled Procedures of the U.S. General
Accounting Office for Household Goods Loss and Damage Claims. Other
commands dealing with carrier recoveries should get a copy of the manual
from the NLSC activity servicing the local area.
Sec. 751.35 Forms and instructions.
Copies of all of the forms and instructions discussed in this part
may be obtained if needed, from the Commanding Officer, Naval
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA
19120.