DOD Settles Shippers' Suit Over Unpaid Surcharges

Law360, New York (September 7, 2011, 4:52 PM EDT) -- The U.S. Department of Defense agreed Tuesday to settle a suit brought by companies that transport household goods for military personnel alleging the DOD failed to reimburse them for congestion fees paid to subcontractors.

Without admitting liability, the department filed a stipulation saying it had agreed to pay $376,270 to resolve a lawsuit lodged in the U.S. Court of Federal Claims by five shippers over unpaid surcharges billed to the department's Surface Deployment and Distribution Command.

The DOD said that to settle the complaint, it would...
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