§2740 — Title 10 Armed Forces | U.S. Code

Summary

The Secretary of Defense and the military department secretaries can pay the full replacement cost for household goods lost or damaged during moves paid for by the Department of Defense when the carrier cannot pay. They may do this in three situations: when the contract required the carrier to pay full replacement but the carrier is not legally liable; when an ocean carrier lost the goods under a DoD ocean contract and the land legs were under contracts that require full replacement; and when more than one independent contractor handled the shipment, at least one contract required full replacement, and the delivering carrier denied the claim because the loss happened while the goods were with an earlier carrier or government entity.

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.

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].”

§2740 Property Loss: Reimbursement of Members and Civilian Employees for Full Replacement Value of Household Effects When Contractor Reimbursement Not Available

Summary

Title 10, §2740

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata