Aero Mayflower Transit Company, Inc., Loss and Damage Claim

Aero Mayflower Transit Company, Inc., has claimed money otherwise due them which was deducted by the government as a subrogee to compensate for loss and damage to household goods owned by a member of the military. The elements required to establish a prima facie case of carrier liability exist in relation to Mayflower. Mayflower contended that its defense of the claim was compromised by administrative delay, alleging that the prolonged delay in the prosecution of the claim by the Air Force substantially curtailed their ability to properly allocate the liability and to receive compensation from the proper parties.

The administrative record indicates that a copy of the contracting officer's report and claim analysis was presented to Mayflower 14 months after delivery of the damaged goods, rather than the 19 months claimed by Mayflower. The delay in prosecution of this claim was caused by the government's attempts to ensure a correct administrative determination as to who should bear the liability and two abortive attempts to collect from the serviceman's insurer. The government's actions were correct and proper and for the carrier's protection. Through its agents, the carrier had knowledge of the existence of the claim, and all pertinent facts pertaining to the claim were in its possession. Mayflower had sufficient knowledge and time to take whatever actions were required to ensure that the parties it thought responsible would bear the liability. The government cannot bear the consequences of the carrier's internal business relationships.