Title 10Armed ForcesRelease 119-73

§2740 Property loss: reimbursement of members and civilian employees for full replacement value of household effects when contractor reimbursement not available

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART IV— - SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 163— - MILITARY CLAIMS › § 2740

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Defense and the military department secretaries can pay service members or civilian employees the full cost to replace household goods lost or damaged when they pay a claim under section 3721 of title 31, but only if the carrier cannot reimburse under section 2636a. They may do this in three situations: when the move was under a contract that required the carrier to pay full replacement value but the carrier is not liable for the loss; when the loss happened while an ocean carrier working under a DoD ocean contract had the goods and the land legs were under contracts that require land carriers to pay full replacement value; and when at least one contract required a carrier to pay full replacement value, the goods passed through more than one independent contractor, and a claim to the carrier who delivered the goods was denied because the loss occurred while a prior carrier or the government had them.

Full Legal Text

Title 10, §2740

Armed Forces — Source: USLM XML via OLRC

The Secretary of Defense and the Secretaries of the military departments, in paying a claim under section 3721 of title 31 arising from loss or damage to household goods stored or transported at the expense of the Department of Defense, may pay the claim on the basis of full replacement value in any of the following cases in which reimbursement for the full replacement value for the loss or damage is not available directly from a carrier under section 2636a of this title:
(1)A case in which—
(A)the lost or damaged goods were stored or transported under a contract, tender, or solicitation in accordance with section 2636a of this title that requires the transportation service provider to settle claims on the basis of full replacement value; and
(B)the loss or damage occurred under circumstances that exclude the transportation service provider from liability.
(2)A case in which—
(A)the loss or damage occurred while the lost or damaged goods were in the possession of an ocean carrier that was transporting, loading, or unloading the goods under a Department of Defense contract for ocean carriage; and
(B)the land-based portions of the transportation were under contracts, in accordance with section 2636a of this title, that require the land carriers to settle claims on the basis of full replacement value.
(3)A case in which—
(A)the lost or damaged goods were transported or stored under a contract or solicitation that requires at least one of the transportation service providers or carriers that handled the shipment to settle claims on the basis of full replacement value pursuant to section 2636a of this title;
(B)the lost or damaged goods have been in the custody of more than one independent contractor or transportation service provider; and
(C)a claim submitted to the delivering transportation service provider or carrier is denied in whole or in part because the loss or damage occurred while the lost or damaged goods were in the custody of a prior transportation service provider or carrier or government entity.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 111–383, div. A, title III, § 354(b), Jan. 7, 2011, 124 Stat. 4195, provided that: “Section 2740 of title 10, United States Code, as added by subsection (a), shall apply with respect to losses incurred after the date of the enactment of this Act [Jan. 7, 2011].”

Reference

Citations & Metadata

Citation

10 U.S.C. § 2740

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73