Payment of Compromise Settlement for Tort Claim Arising Under Activities of the Postal Service

A decision was requested as to whether the cost of a compromise settlement in an accident case involving a Postal Service contract motor carrier should be paid from Postal Service funds or from the permanent indefinite appropriation for the payment of judgments and settlements against the United States. The Postal Service is responsible for paying settlements arising from its activities; this settlement arose from its activities since the accident resulted from the contractor's failure to comply with Federal safety regulations in accordance with the Postal Service contract, and the Department of Transportation did not assume responsibility for safety inspection of postal carriers until after the accident.