Setoff of Navy Claims Against Insurance Companies

An opinion was requested as to the validity of proposed revisions to the Manual of the Judge Advocate General which would permit reduction in the amount of insurance company subrogation claims under the Federal Tort Claims Act by the amount of certain Navy affirmative claims. The following should be considered: (1) settlement or award of tort claims must be made before debt due the government may be set off; (2) the amount of a government claim setoff must be deposited into miscellaneous receipts of the Treasury; and (3) payment of awards in excess of $2,500 must be made by the Comptroller General to whom setoff authority against such awards is reserved.