Encl. (1) to COMDTINST 4610.6
(4) Concealed Damage. When there is no visible damage to a container upon delivery,
giving a clear delivery receipt to the carrier does not always relieve it of liability.
Claims of carrier liability for concealed damage constitute one of the biggest
problems in the Coast Guard freight claims system, as they are among the hardest to
prove. Concealed damage claims require almost undeniable proof of carrier
responsibility for the damage, especially if any significant amount of time has elapsed
between the delivery and the discovery of the damage. Carriers, generally, will refuse
to accept liability for concealed damage reported after an apparent clear delivery.
Carriers can claim that the property was damaged by consignee personnel after
delivery, since property is often moved by the consignee from the unloading dock to
another area before concealed damage is discovered. Considerable weight can be
attached to that position. The burden of proof is upon the owner of the property to
overcome the evidence of the clear delivery receipt. This can be done only by
development of the most complete factual data to establish where, how, and in whose
possession the property was when the damage occurred. Signed statements or
affidavits by transportation or materiel shipping and in-checking personnel giving
complete details about the time, place, and circumstances of delivery acceptance at
origin and concealed damage discovery at destination are required to support a claim
of carrier liability. The Coast Guard must:
(a) Prove the property was delivered to the carrier at origin in good condition or, at
least, in better condition than it was when received at destination.
(b) Offer credible proof the damage occurred while the property was in the
possession of the carrier.
(c) Establish neither the shipper nor the consignee could have been responsible for
the damage.
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