BNUMBER:  B-270007
DATE:  June 20, 1996
TITLE:  Allied Van Lines-Claim for Reimbursement of Amounts
Collected by Setoff for Lost Computer and Software

**********************************************************************

Matter of:Allied Van Lines-Claim for Reimbursement of Amounts 
          Collected by Setoff for Lost Computer and Software

File:     B-270007

Date:June 20, 1996

DIGEST

1.  A prima facie case of carrier liability is established where lost 
items bear a reasonable relationship to items shown on the inventory 
as having been packed in the carton containing the lost items.  A main 
computer unit, associated peripheral equipment, and software that are 
compatible parts of a single personal computer arrangement bear such a 
reasonable relationship to each other.

2.  Where specific items are listed on the DD Form 1840, the fact that 
the shipper may have mistakenly failed to identify the correct box 
number in which the allegedly lost items were located does not negate 
otherwise timely notice of the loss.

DECISION

Allied Van Lines, through its agent, Resource Protection, requests 
reconsideration of our Claims Settlement Z-151685(95), September 5, 
1995, to the extent the settlement disallows reimbursement of the 
offset from funds otherwise due Allied.  The setoff arose from loss 
during storage and shipment of the household goods of Odis Braxton, 
government bill of lading No. 768-577.  We affirm the Claims 
Settlement.

The record shows that the carrier picked up the shipment of household 
goods on April 8, 1992, from San Pedro, California.  On April 10, 
1992, the shipment, while in temporary storage in San Diego, was 
broken into, and some items were stolen.  The remainder of the 
shipment was delivered to Memphis, Tennessee, on September 25, 1992.

The Army paid the shipper for items lost in the theft and filed a 
claim with Allied for $4,946.  Allied offered to pay $2,672.  The Army 
offset the entire $4,946 and Allied requested a refund of $2,719.  Our 
Claims Settlement allowed refund of $739 for a color scanner and fax 
modem which had been claimed by the shipper, based on a finding that 
the evidence of tender of those items to the carrier was deemed 
insufficient.  The settlement denied reimbursement for the balance of 
the offset, $1,980.  Allied requests refund of that amount.

According to the Military-Industry Memorandum of Understanding, (MOU) 
upon delivery, a carrier is responsible for providing the member a 
copy of the Joint Notice of loss or damage at Delivery (DD Form 1840, 
hereafter referred to as the 1840).  The reverse side of this form is 
the Notice of Loss or Damage (DD Form 1840R, hereafter referred to as 
the 1840R) which is used to report damage discovered after delivery.  
The MOU provides that the carrier will accept written notice on the 
1840R as overcoming the presumption that the delivery receipt was 
correct so long as the form is dispatched to the carrier within 75 
days of delivery.  The carrier then has 45 days from the dispatch date 
to inspect the loss or damage.  The shipper then fills out a List of 
Property and Claims Analysis Chart (Form 1844) which is completed by 
the claims office and which is dispatched to the carrier with the 
Demand on Carrier/Contractor (Form 1843).

At issue in this case is inventory item No. 63, a box, 3 cubic feet in 
size, which is listed as missing on the 1840.  Box No. 63 is 
identified on the 1840 as containing "Pack Bell Print/K board, 
software."  At a later date, on the 1844, the shipper claimed that the 
computer, keyboard, laser printer, a color scanner, mouse, modem and 
22 software programs were shipped in that box.[1]

The main issue raised by the carrier is that since it would be 
physically impossible to place all the items listed by the shipper in 
a box of that size, either the items were not tendered or were not 
missing, and thus the carrier is not liable.  The Army asserts that 
the computer is listed on the 1840, and that the carrier was on notice 
from the 1840 that the entire computer system was missing.  In 
addition, the Army asserts that all of the items listed were not in 
one box, but were divided between boxes No. 62, 63 and 136.  A 
statement from Mr. Braxton, dated July 17, 1995, indicates that he 
mistakenly identified all the items as having been in box No. 63, when 
he should have noted that some of the items were missing from box No. 
136.  Allied asserts that since it received no notice that box No. 136 
was missing during the applicable 75 day time period, the notification 
is not timely.

The Army argues that since the items themselves were identified on the 
1840, the fact that Mr. Braxton may not have identified the correct 
box does not relieve the carrier from liability.  The Army found 
evidence of tender of the remaining items.  The computer, keyboard and 
printer are listed on the inventory.  The software and mouse, while 
not listed, bear a reasonable relationship to the computer system and 
might reasonably be shipped in the same cartons.  This Office has held 
that a prima facie case of carrier liability is established where 
items allegedly lost, bear a reasonable relationship to the items 
shown on the inventory as the carton's contents.  Andrews Forwarders, 
Inc., B-255697, Apr. 22, 1994.  A main computer unit, associated 
peripheral equipment, and software that are compatible parts of a 
single personal computer arrangement, even if some of the smaller 
components are not individually listed, bear such a reasonable 
relationship to each other.  Since the carrier packed the shipment and 
was responsible for preparing the inventory, it is reasonable to 
conclude from the carrier's own labeling and inventory documentation 
that items specified on the inventory were tendered, and that related 
items were also included in the shipment.

The carrier's allegation that the items listed as lost could not all 
have fit in a single carton is supposition only.  A large component of 
the computer system, its monitor, was apparently packed in a separate 
box; the other components, including the main unit, printer, keyboard, 
and software, may have fit into a single box.  However, even if these 
items were packed in more than one box, their listing on the 1840 
establishes they were missing on delivery.  Our reading of the items 
listed in abbreviated fashion on this form is that the missing items 
included a main unit (listed as "Pack Bell"), a printer (listed as 
"Print"), a keyboard (listed as "K board"), and software (listed as 
"software").

Although the carrier and the Army disagree about some facts in this 
case, we conclude that the Army has established a prima facie case of 
liability, and that Allied has not provided evidence sufficient to 
relieve itself of liability.  McNamara-Lunz Van and Warehouses, Inc., 
57 Comp. Gen. 415 (1978).  Accordingly, we affirm the Claims 
Settlement and deny further refund to the carrier.

/s/Seymour Efros
for Robert P. Murphy
General Counsel

1. The computer monitor is listed on the inventory and 1840 in Box No. 
62.