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(CD Delight )Tj
/TT0 1 Tf
(as)Tj
/Span<>> BDC
( )Tj
EMC
(a somewhat typical secondary Internet market.)Tj
-23.174 -1.375 Td
(Our review of the current)Tj
/Span<>> BDC
( )Tj
EMC
10.412 0 Td
(catalogue from )Tj
/TT1 1 Tf
6.275 0 Td
(CD Delight)Tj
/TT0 1 Tf
( indicates that not all artists and albums)Tj
/Span<>> BDC
( )Tj
EMC
20.691 0 Td
(are available.)Tj
0 0 1 rg
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(\(4\))Tj
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0 g
12 0 0 12 539.8589 421.5 Tm
( We are not)Tj
-43.655 -1.125 Td
(aware of any common)Tj
/Span<>> BDC
( )Tj
EMC
9.163 0 Td
(household item where a service member is expected to seek replacement th\
rough a)Tj
/Span<>> BDC
( )Tj
EMC
33.348 0 Td
(used,)Tj
-42.511 -1.125 Td
(secondary market, and it is not appropriate to force a service member to\
)Tj
/Span<>> BDC
( )Tj
EMC
28.989 0 Td
(replace CDs that a carrier has lost through such)Tj
-28.989 -1.125 Td
(a market, especially when that)Tj
/Span<>> BDC
( )Tj
EMC
12.384 0 Td
(market appears to be spotty at best.)Tj
/Span<>> BDC
-12.384 -2.125 Td
( )Tj
EMC
T*
(The relevancy of the version of the State Farm Depreciation Guide that N\
CS)Tj
/Span<>> BDC
( )Tj
EMC
30.907 0 Td
(offers is questionable. For purposes of this)Tj
-30.907 -1.125 Td
(appeal, we assume that the)Tj
/Span<>> BDC
( )Tj
EMC
10.94 0 Td
(popularity of the music may effect its value. But, NCS does not indicate\
when)Tj
/Span<>> BDC
( )Tj
EMC
31.493 0 Td
(State Farm)Tj
-42.434 -1.125 Td
(published this Guide. It appears to us that this Guide was published)Tj
/Span<>> BDC
( )Tj
EMC
27.191 0 Td
(at the beginning of 1988, more than six years before)Tj
-27.191 -1.125 Td
(this shipment moved. CDs are)Tj
/Span<>> BDC
( )Tj
EMC
12.332 0 Td
(not mentioned in the Guide, yet admittedly they incur less wear and tear\
than)Tj
/Span<>> BDC
( )Tj
EMC
31.074 0 Td
(some other)Tj
-43.406 -1.125 Td
(media such as vinyl records. We would not question the relevancy of)Tj
/Span<>> BDC
( )Tj
EMC
27.853 0 Td
(depreciation guides issued by the major insurers of)Tj
-27.853 -1.125 Td
(household goods \(like State)Tj
/Span<>> BDC
( )Tj
EMC
11.332 0 Td
(Farm\) that were effective around the time of loss and included music CD\
s.)Tj
/Span<>> BDC
-11.332 -2.125 Td
( )Tj
EMC
T*
(Finally, we find no justification in this record to depreciate the CDs i\
n this claim by a flat 50 percent from replacement)Tj
0 -1.125 TD
(value. For purposes of this claim, we will accept the NCS assumption tha\
t loss of popularity of a CD is the main basis)Tj
T*
(for its loss of value. We compared the total replacement cost of the 23 \
CDs claimed by the service member \($276, or an)Tj
T*
(average of $12 each\), that were presumably based on 1995 prices, with t\
oday's total replacement cost for)Tj
/Span<>> BDC
( )Tj
EMC
42.137 0 Td
(the 23 using)Tj
-42.137 -1.125 Td
(prices quoted on)Tj
/TT1 1 Tf
6.609 0 Td
( Amazon.Com)Tj
/TT0 1 Tf
(.\(www.amazon.com\). )Tj
/TT1 1 Tf
(Amazon.Com)Tj
/TT0 1 Tf
('s)Tj
/TT1 1 Tf
/Span<>> BDC
( )Tj
EMC
/TT0 1 Tf
(prices tend to be lower than many local retail stores,)Tj
-6.609 -1.125 Td
(and the prices we)Tj
/Span<>> BDC
( )Tj
EMC
7.219 0 Td
(used do not include )Tj
/TT1 1 Tf
8.054 0 Td
(Amazon.Com)Tj
/TT0 1 Tf
('s standard domestic shipping cost of)Tj
/Span<>> BDC
( )Tj
EMC
20.317 0 Td
($.95 per CD plus $3.00 per)Tj
-35.591 -1.125 Td
(shipment. Thus, we believe that )Tj
/TT1 1 Tf
12.969 0 Td
(Amazon.Com's )Tj
/TT0 1 Tf
(prices)Tj
/Span<>> BDC
( )Tj
EMC
(are a conservative index of a CD's value. We were unable to)Tj
-12.969 -1.375 Td
(determine the price)Tj
/Span<>> BDC
( )Tj
EMC
7.968 0 Td
(for four of the CDs, but the total replacement cost for the other 19 was\
)Tj
/Span<>> BDC
( )Tj
EMC
28.436 0 Td
($246.31.)Tj
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9.75 0 0 9.75 494.8516 118.5 Tm
(\(5\))Tj
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11.369 0 l
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0 g
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( If the)Tj
-40.852 -1.125 Td
(replacement cost for each of)Tj
/Span<>> BDC
( )Tj
EMC
11.577 0 Td
(the other four averaged $7.42, then the total replacement cost today for\
the 23)Tj
/Span<>> BDC
( )Tj
EMC
31.377 0 Td
(CDs would)Tj
-42.955 -1.125 Td
(be about equal to the member's replacement cost of 5 years ago.)Tj
/Span<>> BDC
( )Tj
EMC
25.81 0 Td
(oreover, we found no basis for NCS' comment that even)Tj
-25.81 -1.375 Td
(the "classics")Tj
/Span<>> BDC
( )Tj
EMC
("are often the very ones that you find in the $4.99 bin at Best Buy or)Tj
/Span<>> BDC
( )Tj
EMC
33.245 0 Td
(usicland.")Tj
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ET
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11.369 0 l
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( We do not detect any)Tj
-38.183 -1.125 Td
(loss of)Tj
/Span<>> BDC
( )Tj
EMC
(popularity for the claimant's selection of music.)Tj
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/Span<>> BDC
( )Tj
EMC
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-19.936 -1.125 Td
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/TT1 1 Tf
23.991 0 Td
(See)Tj
/TT0 1 Tf
( )Tj
/TT1 1 Tf
(Resource)Tj
/Span<>> BDC
( )Tj
EMC
(Protection)Tj
/TT0 1 Tf
9.83 0 Td
(, B-266114, April 12, 1996; )Tj
/TT1 1 Tf
(aff'd)Tj
/TT0 1 Tf
-33.821 -1.125 Td
(DOHA Claims Case No.)Tj
/Span<>> BDC
( )Tj
EMC
(96081208 \(December 20, 1996\). )Tj
/TT1 1 Tf
23.413 0 Td
(See also)Tj
/TT0 1 Tf
( DOHA Claims Case No. 98061502)Tj
/Span<>> BDC
( )Tj
EMC
(\(June 16, 1998\).)Tj
/Span<>> BDC
-23.413 -2.125 Td
( )Tj
EMC
0 -2.125 TD
(NCS contends that the Settlement Certificate in the present claim was is\
sued)Tj
/Span<>> BDC
( )Tj
EMC
30.881 0 Td
(in error because our adjudicators merely)Tj
-30.881 -1.125 Td
(cited prior Comptroller General and)Tj
/Span<>> BDC
( )Tj
EMC
14.634 0 Td
(DOHA decisions without responding to the "myriad of new information")Tj
/Span<>> BDC
( )Tj
EMC
29.479 0 Td
(that it)Tj
-44.112 -1.125 Td
(provided to support its theory that a 50 percent flat rate of)Tj
/Span<>> BDC
( )Tj
EMC
23.382 0 Td
(depreciation should be applied. NCS requests our specific)Tj
-23.382 -1.125 Td
(review of four items:)Tj
/Span<>> BDC
( )Tj
EMC
8.664 0 Td
(the State Farm Depreciation Guide, which it offered to prove the theory \
that)Tj
/Span<>> BDC
( )Tj
EMC
30.657 0 Td
("obsolescence" is)Tj
-39.321 -1.125 Td
(important; a letter by David Maloney, a certified)Tj
/Span<>> BDC
( )Tj
EMC
19.687 0 Td
(member of the International Society of Appraisers, dated June 26,)Tj
-19.687 -1.125 Td
(1996;)Tj
/Span<>> BDC
( )Tj
EMC
("the establishment that the carrier's legal liability is actual cash)Tj
/Span<>> BDC
( )Tj
EMC
27.941 0 Td
(value;" and "evidence of a used market for CDs.")Tj
-27.941 -1.125 Td
(In its July 29,)Tj
/Span<>> BDC
( )Tj
EMC
(1999, letter to DOHA, NCS also asked us to consider the used CD market o\
n the)Tj
/Span<>> BDC
( )Tj
EMC
38.245 0 Td
(Internet, and it provided)Tj
-38.245 -1.375 Td
(a printout of albums and prices from )Tj
/TT1 1 Tf
14.857 0 Td
(CD Delight.)Tj
0 0 1 rg
/TT0 1 Tf
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(\(3\))Tj
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( Prior correspondence in the record amplifies)Tj
/Span<>> BDC
( )Tj
EMC
18.299 0 Td
(NCS's position in two)Tj
-38.992 -1.125 Td
(respects. First, based on the opinion of Mr. Maloney and)Tj
/Span<>> BDC
( )Tj
EMC
22.913 0 Td
(Resource Protection's expert in DOHA Claims Case No.)Tj
-22.913 -1.125 Td
(96081208, )Tj
/TT1 1 Tf
(supra)Tj
/TT0 1 Tf
(,)Tj
/Span<>> BDC
( )Tj
EMC
(NCS believes that economic obsolescence is the "greatest factor" in)Tj
/Span<>> BDC
( )Tj
EMC
34.586 0 Td
(value reduction of CDs because)Tj
-34.586 -1.125 Td
(music passes its popularity peak. Even some CDs)Tj
/Span<>> BDC
( )Tj
EMC
20.081 0 Td
(that NCS describes as "classics" "are often the very ones that)Tj
/Span<>> BDC
( )Tj
EMC
24.634 0 Td
(you find)Tj
-44.715 -1.125 Td
(in the $4.99 bin at Best Buy or Musicland." Second, in absence of)Tj
/Span<>> BDC
( )Tj
EMC
26.626 0 Td
(any agreement, the "actual cash value" of a CD is the)Tj
-26.626 -1.125 Td
(limit on the)Tj
/Span<>> BDC
( )Tj
EMC
4.861 0 Td
(carrier's liability for a particular item.)Tj
-4.861 -5.375 Td
(The most important "new information" NCS offers is Mr. Maloney's)Tj
/Span<>> BDC
( )Tj
EMC
27.632 0 Td
(letter. Most of Mr. Maloney's comments involve)Tj
-27.632 -1.125 Td
(property generally, but he added)Tj
/Span<>> BDC
( )Tj
EMC
13.217 0 Td
(a few key observations concerning CDs. He stated that two issues are imp\
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/Span<>> BDC
( )Tj
EMC
32.158 0 Td
(in)Tj
-45.375 -1.125 Td
(appraising CDs: proper handling to prevent damage and the popularity of \
the)Tj
/Span<>> BDC
( )Tj
EMC
31.047 0 Td
(CD. Mr. Maloney noted that a CD is)Tj
-31.047 -1.125 Td
(subject to damage like vinyl phonographic)Tj
/Span<>> BDC
( )Tj
EMC
17.273 0 Td
(records, but not to the same degree as the vinyl record. And like vinyl)Tj
-17.273 -1.125 Td
(records, the popularity of a CD will affect its value. Mr. Maloney obser\
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/Span<>> BDC
( )Tj
EMC
30.269 0 Td
(that new CDs sell for about $16 at popular)Tj
-30.269 -1.125 Td
(retail establishments in the)Tj
/Span<>> BDC
( )Tj
EMC
10.942 0 Td
(Washington, DC, area. But, there are two main secondary markets: estate \
sales)Tj
/Span<>> BDC
( )Tj
EMC
31.767 0 Td
(where CDs)Tj
-42.709 -1.125 Td
(sell for about $4 each; and secondary retail outlets which specialize)Tj
/Span<>> BDC
( )Tj
EMC
27.24 0 Td
(in selling used CDs for about $7 each.)Tj
/TT2 1 Tf
/Span<>> BDC
-3.208 -2.125 Td
( )Tj
EMC
-2.126 -2.125 Td
(Discussion)Tj
/TT0 1 Tf
-21.906 -2.125 Td
(There is no support for the inference that NCS is trying to draw from Mr\
.)Tj
/Span<>> BDC
( )Tj
EMC
29.549 0 Td
(aloney's letter. Mr. Maloney's comments about)Tj
-29.549 -1.125 Td
(a secondary market for CDs in)Tj
/Span<>> BDC
( )Tj
EMC
12.496 0 Td
(the Washington, DC, area may not be relevant to any market that may or m\
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/Span<>> BDC
( )Tj
EMC
32.823 0 Td
(have)Tj
-45.319 -1.125 Td
(existed in 1995 at destination in San Antonio. \(Later, we will address \
the)Tj
/Span<>> BDC
( )Tj
EMC
29.411 0 Td
(effect of any secondary market that may now)Tj
-29.411 -1.125 Td
(exist as a result of sales through)Tj
/Span<>> BDC
( )Tj
EMC
13.025 0 Td
(the Internet.\) More significantly, based on Mr. Maloney's brief discuss\
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/Span<>> BDC
( )Tj
EMC
29.757 0 Td
(about a)Tj
-42.782 -1.125 Td
(secondary market for CDs in the Washington area, NCS wants us to find)Tj
/Span<>> BDC
( )Tj
EMC
29.327 0 Td
(that the measure of damage for a CD)Tj
-29.327 -1.125 Td
(lost/damaged in a household shipment is)Tj
/Span<>> BDC
( )Tj
EMC
16.498 0 Td
(actual cash value. NCS urges us to look to estate sales and wholesale us\
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-16.498 -1.125 Td
(markets to determine that actual cash value.)Tj
/Span<>> BDC
T*
( )Tj
EMC
T*
(NCS ignores our finding in DOHA Claims Case No. 96081208 that it was err\
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/Span<>> BDC
( )Tj
EMC
32.08 0 Td
(to measure a household goods owner's)Tj
-32.08 -1.125 Td
(measure of loss by reference to a used)Tj
/Span<>> BDC
( )Tj
EMC
15.494 0 Td
(household goods market. Due to its fundamental importance, we repeat her\
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-15.494 -1.125 Td
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/Span<>> BDC
T*
( )Tj
EMC
T*
("On the other hand, the appraiser started her analysis from a faulty)Tj
/Span<>> BDC
( )Tj
EMC
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-26.871 -1.125 Td
(household goods and effects owned)Tj
/Span<>> BDC
( )Tj
EMC
14.524 0 Td
(and kept for personal use. The courts recognize that actual value to the\
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/Span<>> BDC
( )Tj
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