ble, be submitted by the claimant or his authorized agent to the commanding officer or officer-in-charge of the military activity, installation, or unit nearest to the point of delivery of the goods or where investigation of the facts and circumstances can most conveniently be made. As an alternative, the claim may be submitted to the commanding officer or officer-incharge of the activity, installation, or unit to which the claimant belongs or is attached. Acceptance of a claim for filing will not be refused even though the claim does not appear to be within the scope of these regulations or could have been filed with another activity. Commanding officers and officers-incharge will accept claims made by civilians, members of another armed force, veterans, or on behalf of a deceased person.

(a) Air Force claim. Claims of Air Force personnel and civilian employees of the Air Force will be investigated and processed up to the point of adjudication and then forwarded directly to the nearest Air Force installation.

(b) Army claim. Claims of Army personnel and civilian employees of the Army will be investigated and processed up to the point of adjudication and then forwarded directly to the nearest Army installation.

(c) Demands on carriers. Demands on carriers will be the responsibility of the claimant's parent service.

§ 751.20 Investigation of claims.

Upon receipt of a claim filed in accordance with the provisions of this part, the commanding officer shall refer the claim, with all available information relating thereto, to the 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. Direct correspondbetween investigating officers and commands or other naval personnel is authorized for the purpose of tracing the location or disposition of missing baggage or effects. With regard to the requirements of the Privacy Act of 1974 (5 U.S.C. 552a) as it pertains to obtaining personal information from claimants or witnesses, § 751.17, as well as appropriate parts of 32 CFR Part 750.

ence

[38 FR 6040, Mar. 6, 1973, as amended at 43 FR 25426, June 13, 1978]

§ 751.21 Recovery action in transportation and storage losses.

(a) Filing of concurrent claims against carriers, contractors, and insurers. Upon submission of a claim against the Government, the claims investigating officer will prepare and submit the claim to the appropriate carrier, contractor, and/or insurer for damage, loss, or destruction of household and personal effects being shipped pursuant to authorized travel orders.

(b) Concurrent claims against carriers, contractors, and insurers. The claimant should provide the claims investigating officer with all documents, papers, and other evidence needed to press the claim against the carrier, contractor, and/or insurer. In return, the claims investigating officer shall advise the claimant that the claim will be monitored to final settlement. The claimant will notify the claims investigating officer promptly of any communication received from the carrier, contractor, or insurer, particularly if it involves settlement, partial settlement, or denial of liability. Any subsequent correspondence with the carrier, contractor, and/or insurer shall be identi

fied properly with the company's claim or reference symbols.

(c) Approval or denial of concurrent claim by carrier, contractor, or insurer. (1) The claims investigating officer shall report any denial of a claim by a carrier, contractor, or insurer to the command where the claim has been forwarded for adjudication.

(2) Upon receipt of approval of the claim by a carrier, contractor, or insurer, the claims investigating officer shall determine that the offered settlement is representative of the contractual liability for which the claim has been made, then forward the settlement to the adjudicating authority. The adjudicating authority will review the settlement and forward it for deposit to the appropriate account.

(i) If the claim filed with the Government has been forwarded to the adjudicating authority and the recovery received from the carrier, contractor, or insurer is considered to be sufficient, then the claims investigating officer should advise the claimant to accept the award. Upon acceptance of the award, the claims investigating officer shall notify the adjudicating authority (a suggested speed-letter format is shown in appendix section A-21(e).1

(ii) If the claimant has already received full payment from the Government, he will pay the proceeds received from the carrier, contractor, and/or insurer to the United States by endorsing the check to the Treasurer of the United States and delivering it to the command or to the claims investigating officer. If the amount to be refunded, as determined according to § 751.13, is less than the amount received, remittance may be made by personal check or money order payable to the Treasurer of the United States.

(d) Nonconcurrent claims. If an independent claim has been filed against a carrier, contractor, and/or insurer, the claimant will be asked, at the time the claim is filed with the Government, to certify whether or not he has obtained any recovery from any other party. A sample certificate is contained in appendix section A-21(f).1 If

'Filed as part of original document.

any recovery has been obtained, appropriate comment indicating the amount recovered shall be made by the claims investigating officer on the claim being forwarded to the adjudicating authority. If action by the carrier, contractor, and/or insurer is still pending, the claimant will advise them to address all correspondence to him in care of the claims investigating officer of the command, unit, or activity at which the claim was filed, Attention: Claims Investigating Officer. The claimant shall be advised to notify the claims investigating officer promptly as to any offer of settlement or denial of liability. Forwarding of the claim to the appropriate adjudicating authority will not be delayed pending action of a carrier, contractor, and/or insurer unless it is apparent that final action by the carrier, contractor, and/or insurer will be immediately forthcoming.

(e) Failure of carrier, contractor, and/or insurer to respond. Normally an acknowledgement, or perhaps even final action, will be received from the carrier, contractor, and/or insurer within 10 days after the claim is submitted to them. In the event a response is not received to the claim or to subsequent correspondence, the matter should be reported to the origin transportation officer as a matter bearing upon the adequacy of contractual performance. The origin transportation officer will render assistance in obtaining action from the company and report the actions taken to the claims investigating officer who will monitor the claim against the carrier, contractor, or insurer until a reply has been received from the origin transportation officer.

(f) Unjustified denials by the carrier, contractor or insurer—(1) Government bill of lading carriers.—(i) Action by the claims investigating officer. If a Government bill-of-lading carrier or its insurer has refused to acknowledge or respond to a claim within a reasonable time (normally 30 days if applicable regulations or agreements do not specify another time limit), if the claims investigating officer considers a valid claim to have been denied or no adequate settlement offered, or if there has been a delay in settlement of a claim beyond 120 days, then, in

addition to initiation of administrative action as appropriate under Interstate Commerce Commission Regulations, military tender of service, or other applicable regulation or agreement, the matter shall be referred to the adjudicating authority who paid the claim. The referral shall contain a statement of the facts, copies of pertinent correspondence and documents, and the claims investigating officer's opinion as to liability. A copy of the referral letter with enclosures will be sent to the origin-transportation officer. The carrier should be notified of this action by a copy of the referral or by separate correspondence.

(ii) Action by the adjudicating authority. The adjudicating authority shall review the entire file and shall make a final demand on the carrier when liability is clear. The final demand shall set forth the exact amount of liability, in view of the supporting evidence, owed by the carrier under the terms of the Government bill of lading, the basis for the determination of the amount demanded, and notification that the demand is a final demand and that the file will be forwarded for involuntary collection by withholding amounts due from the Navy if payment is not received within 30 days. If, after 30 days from the date of the final demand, reimbursement from the carrier has not been received, the case file should be forwarded to the Navy Regional Finance Center, Code FF330, Washington, D.C. 20371, requesting that the amount demanded by the final demand be setoff against subsequent Government bill of lading earnings. The amount of withholding requested must be the amount of the final demand. If the amount of the final demand is in error, a new 30-day final demand must be made. In general, a carrier should not be permitted to continue negotiations after a final demand has been made. If a misunderstanding between the claims investigating officer and the carrier is obvious from the file, negotiation prior to a final demand may be desirable. Under normal circumstances, however, if the claims investigating officer and the carrier have been unable to reach agreement, a final-demand amount should be determined and a final

demand made. The carrier should not be permitted to further delay payment of his legal liability by meaningless negotiation.

(2) Nontemporary storage warehousemen—(i) Action by the claims investigating officer. If a nontemporary warehouseman or his 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 there has been a delay in settlement of a claim beyond 120 days, the matter shall be referred to the adjudicating authority who paid the claim. The referral shall contain a statement of the facts, copies of pertinent correspondence and documents, and the claims investigating officer's opinion as to liability. The warehouseman should be notified of this action by a copy of the referral letter or by separate correspondence.

(ii) Action by the adjudicating authority. The adjudicating authority shall review the entire file and shall make a further demand on the warehouseman or his insurer when liability seems clear. If recovery is not affected within 30 days from this demand, or negotiations likely to result in an adequate recovery are not underway at that time, the file will be forwarded to the appropriate area Military Traffic Management Command (MTMC) Headquarters for final determination of liability by the officer administering the warehouseman's basic agreement.

(iii) Pack-and-crate contractors. When the origin Navy personnel property office, or the destination claims investigating officer on a shipment originating at a non-Navy transportation office, fails to receive adequate response or recovery from a pack-andcrate contractor within 60 days or when a claim is denied by the contractor without sufficient justification, the matter should be referred immediately to the officer administering the contract under which the services were performed. In the case of a shipment originating at a non-Navy transportation office, the referral should be made via the origin transportation office. Each referral will include a full

statement, with supporting evidence, substantiating that the contractor's denial of the claim is unjustified or that the settlement offer is inadequate. Due to the relatively short duration of pack-and-crate contracts, it is desirable to expedite processing of unjustified denials.

(iv) Other carriers, contractors, or insurers. Unjustified denial by other carriers, contractors, or insurers will be referred by the claims investigating officer to the adjudicating authority. The adjudicating authority will review the entire file and shall make a further demand on the carrier, contractor, or insurer when liability seems clear. If recovery is not received within 30 days from the date of this demand, or negotiations likely to result in an adequate recovery are not underway

at that time, the file will be forwarded to the Judge Advocate General for additional recovery action.

(g) Processing of carrier checks. On occasion, a carrier will send a check for an amount less than the adjudicated amount of the claim against the carrier, and which contains a standard liability release statement on the reverse thereof. Such a check should not be deposited. The check should be returned to the carrier with a demand for the full amount due. Language as follows is appropriate:

Your check in the amount of $(amount) in response to our letter (date) is hereby returned as not being an acceptable settlement offer. The adjudicated amount of your liability in this case is $(amount), and demand is hereby made for the full amount. Unless your check for the full amount is received within 30 days, the full amount will be set off from the amounts otherwise due to you.

[38 FR 6040, Mar. 6, 1973, as amended at 39 FR 22421, June 24, 1974; 43 FR 25426, June 13, 1978; 43 FR 33241, July 31, 1978]

§ 751.22 Preparation of claims investigating officer's report.

(a) General. The claims investigating officer will prepare a written report of investigation including his recommendations. Sufficient copies will be prepared so that the original and two copies may be forwarded to the appropriate adjudicating authority and one copy retained at the command. Only one set of supporting papers, docu

ments, and exhibits need be forwarded to the adjudicating authority. The claims investigating officer may, at his discretion, utilize DD Form 1844 (see appendix A-21 (h))1 as a worksheet in appropriate cases and attach a copy of the form to his report.

(b) Regular claims procedure. The claims investigating officer's report shall include a statement of all additional facts and circumstances not pointed out by the claimant, including any facts overlooked or incorrectly stated by the claimant in his statement of the facts and circumstances of the incident, and specific recommendations regarding any items for which reimbursement in an amount less than the full amount claimed, less normal

depreciation, if applicable, is recom

as

mended due to preexisting damage, inflated estimates of repair, economically repairable property claimed beyond repair, salvage value of property, or other factors. Specific recommendations shall also include designation of those repair and replacement costs for which written estimates have been waived in accordance with § 751.17(b) and an explanation of any unusual circumstances justifying nonroutine processing of the claim. Any convenient format can be used for the written report as long as all relevant information is included. Appendix section A-21-g1 shows a sample report. The claims investigating officer will complete and sign part III of DD Form 1842 (see appendix section A21c(2)) when investigation of the claim is complete. Report control symbol JAG 5890-2 is assigned to this report.

(c) Claims arising from the same incident. A separate report shall be prepared on each claim filed. However, where separate claims arise from the same incident, the claims investigating officer may avoid duplication of effort by completing one detailed report of investigation with all necessary exhibits and documents. He may then incorporate this report and its supporting exhibits by reference. A brief reference to the case (name, case number, date, etc.) in which the detailed report

'Filed as part of original document.

and exhibits may be found shall be included.

(d) Small-claims procedure. When the total amount claimed is $500 or less and the claims investigating officer has determined that all damage or loss claimed was actually incurred, that the amounts claimed are accurate and reasonable, and that the full amount claimed, limited by normal depreciation where applicable, should be allowed, he may complete part II of DD Form 1842 (see appendix section A-21c(3))1 in lieu of making a more detailed written report. Preparation of DD Form 1842, part II, for certification and signature by the adjudicating authority shall constitute a finding that the claim is properly presented and substantiated and a recommendation for payment in full less normal depreciation, if applicable.

(e) Forwarding of claim. For all claims not including enlisted uniform items to be replaced in kind, a claims investigating officer representing a Navy Personal Property Office or Marine Corps Transportation Office may, with the permission of his Commanding Officer, forward the claim file and claims investigating officer's report directly to the cognizant adjudicating authority. All other claims should be forwarded to the cognizant adjudicating authority via the Commanding Officer.

(f) Privacy Act requirements. It is essential that each investigative report reflect that a good faith effort was made to comply with the Privacy Act of 1974 (5 U.S.C. 552a) and Secretary of the Navy Instruction 5211.5 series (32 CFR Part 701 Subparts F and G). Any indication of noncompliance shall be explained either in the investigative report on the forwarding endorsement and, when required, remedied in accordance with section 0308 of the Manual of the Judge Advocate General. The claims adjudicating authority has the responsibility to ensure that remedial action is taken to rectify noncompliance indicated in the investigative report prior to forwarding the report to the Judge Advocate General.

1Filed as part of the original document.

[38 FR 6040, Mar. 6, 1973, as amended at 39 FR 22422, June 24, 1974; 43 FR 25427, June 13, 1978]

§ 751.23 Action by commanding officer.

Items of military clothing and related articles which have been lost or destroyed incident to service may be replaced in kind. (See § 751.24(e).) The items issued need not be new and unused, provided they are in at least as good condition as the lost or destroyed items immediately prior to the accident or incident causing the loss or damage. If items which were initially issued to the claimant by the Government have been lost or damaged incident to service and replacement in kind cannot be effected, because items are not available for issue, monetary compensation is payable for those items replaced or to be replaced by the claimant at his own expense. The amount allowable normally will be the reasonable cost of replacement with no deduction for depreciation (in order that the claimant will not be required to bear an expense which he would not have incurred if the items had been available for replacement in kind). If military items were initially acquired by the claimant at his own expense, and replacement in kind cannot be effected or the claimant is unwilling to accept replacement in kind because the lost or destroyed items were of a better quality than those available for issue, monetary compensation may be allowed for the loss or destruction of the items involved.

(a) Examination and approval of report. The commanding officer, the chief of staff, chief staff officer, or executive officer, or judge advocate shall review the file and determine whether the findings of the investigating officer are complete, whether the facts and evidence are clearly stated, and whether the recommendation of the investigating officer is supported by adequate evidence. In proper cases he may refer such report back to the investigating officer for further investigation and the inclusion of additional data. The commanding officer, chief of staff, chief staff officer, executive officer, or judge advocate shall then by first endorsement to the investigat