Apollo Sues Mass. Agency in GSA Flap

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WASHINGTON -- Apollo Travel Services sued Travel Centre, a small agency in Danvers, Mass., that went out of business in December 1996, for $105,511.14 in damages. In a complaint filed in U.S. District Court in Chicago, Apollo said Travel Centre failed to pay a $2,250 bill in October 1996, so the CRS terminated its contract the next month, resulting in the total damages.

The complaint was filed on Dec. 24 "as my Christmas present," said Fred Morahan, who ran Travel Centre with his wife for 25 years before dissolving his corporation. "I was just served with a copy because I guess they had trouble finding me," said Morahan, now operating as a one-man independent contractor.

Morahan is the agent who went to war against the General Services Administration for yanking his only government contract, an account that covered federal employees in Maine and New Hampshire, in June 1996. He contended that the GSA's action forced him to incur extraordinary expenses and wind down his business. Last Thanksgiving, Morahan won a major skirmish when the GSA's Board of Contract Appeals ruled that the GSA acted in "bad faith," and told him to file by Jan. 23 an itemized list of expenses he thinks the GSA should pay him.

Morahan said he was puzzled by the timing of Apollo's suit because he has kept in touch with the CRS about the progress of his government case, and said he has told Apollo that he will include the $105,000 among the damages he wants from the GSA. "I'm willing to turn over whatever I get from the government that's allocated to Apollo," he said.

Morahan, who refers to himself as "a stubborn Irishman," said he hired a Washington attorney in 1996 to handle his case against the GSA. More recently, he hired a retired government auditor to draft his itemized proposal for damages in the particular format required by the government. "Now I have to get another lawyer in Illinois to respond to the court complaint," he said.

Morahan said his former agency started its relationship with Apollo in 1978. "I was one of the first Apollo agents in the country. We had good relations, and I don't think this is a very nice way to treat me."

A Galileo International spokeswoman said the lawsuit and the government case are unrelated "and the outcome of one doesn't affect the other."

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