Brown v. United States

United States Court of Federal Claims·Decided August 29, 2025·No. 24-536·Unpublished

Opinion

In the United States Court of Federal Claims No. 24-536 Filed: August 29, 2025

________________________________________ ) JAMES MATTHEW BROWN, ) ) Plaintiff, ) ) v. ) ) THE UNITED STATES, ) ) Defendant. ) ________________________________________ )

James Matthew Brown, pro se.

Laurel Don Havens III, United States Department of Justice, Civil Division, for the United States.

OPINION AND ORDER

When a servicemember retires, the Department of Defense (DOD) moves his or her belongings from the servicemember’s final duty station to his or her “home of selection.” While this may be in the United States, retiring servicemembers may have their belongings shipped overseas as well. That is what Staff Sergeant James Brown and his wife chose to do; they chose Manila, Philippines as their home of selection. But a series of problems turned their move into a nightmare.

Mr. Brown served for twenty years in the Army until his honorable discharge in 2018. When he and his wife decided to move to the Philippines, the Army advised Mr. Brown that he would be responsible for any duties, taxes, and demurrage fees. But Mr. Brown’s wife would not have to pay the duties because she is a Philippine national. Mr. Brown thus chose to have her listed as the consignee to receive their shipment in Manila. But the paperwork that a contractor completed was not correct; it listed Mr. Brown as the consignee. Upon learning of this, Mr. Brown and the contractor began the process of changing the consignee to his wife to avoid the import duties. There were, however, four other contractors involved in the shipment and things bogged down. In the meantime, the shipping containers carrying Mr. Brown’s belongings arrived at the port in Manila. Without the proper paperwork, they sat in the port. And sat. They sat for so long that they started incurring demurrage charges, which increased each day the containers sat. Before long, the demurrage charges ran into the tens of thousands of dollars, which Mr. Brown could not afford. But even though Mr. Brown got the paperwork corrected, the Philippine government would not allow the shipping containers to clear customs until the demurrage fees were paid. Mr. Brown now contends that these fees total more than $600,000, which he wants the Government to pay so that he can get his belongings. He alleges a breach of contract. But the agreement is clear—Mr. Brown was responsible for all duties, taxes, and demurrage charges. The court therefore grants the Government’s motion to dismiss.

I. Background

Mr. Brown served honorably in the Army for twenty years. ECF No. 1 at 2. Shortly after his retirement from the Army, Mr. Brown initiated the process to ship his belongings to the Philippines. He submitted an Application for Shipment And/Or Storage of Personal Property (DD Form 1299) to ship his belongings from Myrtle Beach, S.C. to Manila. Id.; ECF No. 12-1 at Appx 100. This application provides that the “Member/Employee is responsible for all applicable Import Customs, Duties, and Taxes.” ECF No. 12-1 at Appx 100.

There was also certain counseling that DOD provided Mr. Brown regarding the shipment, although the parties disagree on what this counseling entailed. ECF No. 12 at 2; cf. ECF No. 14 at 1-2. Obviously, this court cannot resolve that dispute at this stage. Nor does it need to. The issue is whether the Army provided Mr. Brown guidance that he would be responsible for demurrage fees. In his communications with DOD, Mr. Brown admitted that he “was advised before my shipment left and that [he] was responsible for the demurrage charges.” ECF No. 12- 1 at Appx 114 (cleaned up). 1

After he submitted his DD 1299, the Army issued a Global Bill of Lading (GBL) for Mr. Brown’s shipment. Id. at Appx 97. A GBL serves as the contract between the Army and the Transportation Service Provider (TSP). Cent. Transp. Int’l, LLC v. United States, 63 Fed. Cl. 336, 338 (2004). “Each GBL serve[s] as the contract between the parties, establishing their respective rights with regard to the transportation services procured and provided.” Dalton v. Sherwood Van Lines, Inc., 50 F.3d 1014, 1016 (Fed. Cir. 1995). In this case, the TSP was American Vanpac Carriers, Inc. (AAVP). Like the DD 1299, the GBL provided that “Member/Employee is responsible for all applicable Import Customs, Duties, and Taxes[.]” ECF No. 12-1 at Appx 97. Mr. Brown advised AAVP that he wanted his wife listed as the consignee for the shipment because she was a Philippine citizen and would not be charged the import duties. Id. at Appx 2.

AAVP sent Mr. Brown an initial email that included various attachments regarding shipping into the Philippines. Id. at Appx 98-99. It also informed him that Nilson Van & Storage would be his Origin Agent. Nilson picked up Mr. Brown’s belongings from him in Myrtle Beach.

Once things were ready, The Pasha Group, which was the port agent in the United States, picked up Mr. Brown’s belongings from Nilsen and transported them to Charleston, S.C. for

1 Mr. Brown relies on his communications with the DOD in his complaint, see ECF No. 1 at 2-4, so the court can rely upon them when resolving this motion to dismiss.

2 loading. There was an initial issue because Mr. Brown’s belongings would not fit into two forty- foot shipping containers. They had already loaded one forty-foot container and needed a forty- five-foot container for the remainder of Mr. Brown’ belongings. But The Pasha Group did not have one available, so it arranged to get a forty-five-foot container from Maersk for shipment later.

Both containers arrived in Manila in late 2018. But the paperwork was still causing issues, and they could not clear customs in the Philippines without proper paperwork or Mr. Brown paying the import duties as the consignee. In late January 2019, Asian Tigers, the destination port agent, worked with Mr. Brown and his wife to correct the paperwork to identify her as the consignee and exempt their shipment from import duties. ECF No. 12-1 at Appx 67- 68. Asian Tigers advised Mr. Brown demurrage 2 charges were accumulating and that he should pay the taxes and fees, which accumulated on a daily basis. Id. at Appx 68. At that time, Asian Tigers estimated that the total amount due for the import duties and then-accrued demurrage charges would have been around $6,000. Id. at Appx 65. Mr. Brown did not do so.

In mid-March, things remained unresolved and demurrage charges kept accruing. Even though they had been working with the shipping companies to correct the Ocean Bills of Lading to list Mr. Brown’s wife as the consignee, the changes were never made. Id. at Appx 53-60. There was a bit of infighting and finger pointing among the various companies. Id. By April 1, 2019, the OBLs had been corrected. Id. at Appx 44-46, 58-59. In late April, AAVP advised Mr. Brown that it was working to lower the demurrage fees and that they would now begin the process of clearing customs in the Philippines. Id. at Appx 43. Unable to get their belongings, Mr. Brown and his wife returned to the United States. ECF No. 1 at 3.

Upon their return, Mr. Brown initiated a Congressional inquiry through his congressman regarding the demurrage fees. Id.; ECF No. 12-1 at Appx 3. Shortly after, Asian Tigers sent Mr. Brown a summary of the outstanding fees and advised that he could get the shipment released if he paid the balance. ECF No. 12-1 at Appx 39. Mr. Brown chose to wait for the outcome of the Congressional inquiry. Id. The Army responded that although it was sympathetic to Mr. Brown’s plight, it was not responsible for the costs. According to the Army, there were two issues. First, the issue with Mr. Brown listed as the consignee rather than his wife on the paperwork. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Brown v. United States, (uscfc 2025).

Brown v. United States (Brown v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Charles B. Godwin v. United States
338 F.3d 1374 (Federal Circuit, 2003)
Central Transport International, Inc. v. United States
63 Fed. Cl. 336 (Federal Claims, 2004)
Spodek v. United States
73 Fed. Cl. 1 (Federal Claims, 2006)