Settlements proceed for maritime damages - American Auto Logistics Inc. settles claims for damage to automobiles - Brief Article

Translog: Journal of Military Transportation Management, March-April, 2001 by Leesha Galery

Settlements have been completed with a majority of service members who had vehicles damaged on the Faust. American Auto Logistics, Inc., has settled claims with 161 of 165 owners.

The vehicles were damaged Nov. 5 aboard the MV Faust when it was contaminated with diesel oil during an English Channel storm.

"We are working resolutely to settle the claims with the service members affected," said Bill Antonelli, Vice President of the Monroe, N.Y. firm. "We know this situation is a great hardship on them."

Claims are expected to reach $3 million.

Due to safety considerations, the company has judged all vehicles a total loss.

The company believes the four outstanding claim cases will be resolved in the next few days, said Antonelli.

With most claims settled, the firm has moved two adjusters from Germany back to their home office.

"We've decided to have our adjusters return to the States to complete the remaining settlement and follow-up work," said Greg Wellstead, Manager, Vehicle Processing Center Logistics.

The rapid compensation has drawn praise from the Military Traffic Management Command.

"Not many companies would volunteer to pay for 165 vehicles," said Charlie Helfrich, MTMC's coordinator for privately owned vehicle movement.

"This was American Auto Logistics' call."

The compensation price offered or the desire of some individuals to physically retain their vehicles has led to some settlement delays.

"We had two members refuse to turn in their vehicles," said Antonelli.

"One took his vehicle on a long trip. The car started to smell to the point he had to get out for fear it would catch on fire."

"This is exactly the type of situation we don't want," said Helfrich.

Antonelli agreed.

"This sort of example supports our decision to total the vehicles," said Antonelli. "If we err on this issue, we would much rather err on the side of safety."

American Auto Logistics has exceeded contractual obligations repeatedly in order to assist service members who lost their vehicles. Assistance includes: Payment of the vehicles' U.S. Blue Book value; payments in excess of the $20,000 limitation; and free use of a rental car for 30 days, or $1,000 in lieu of a rental car.

Yet another compensation to service members was a special break negotiated through the Overseas Military Car Sales offices.

Affected service members who have not yet settled their claims should contact:

Rich Holland-Moritz, (201) 505-4091, e-mail: rmoritz@wlhinet.com; or Jim Nicholson, (201) 505-4062, e-mail: jnicholson@wlhinet.com.

The adjusters are located at 85 Chestnut Ridge Road, Suite #119, Montvale, N.J., 07645. The facsimile number is (201) 307-0634.

Leesha Galery
Legislative Liaison
Command Affairs Office