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B-142268, MAY 6, 1960

B-142268 May 06, 1960
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TO TULSA ARMY AND NAVY STORE: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED APRIL 16. YOU WILL ENDEAVOR TO WORK OUT A FAIR AND EQUITABLE SETTLEMENT TO PRESENT TO US. MAY NOT BE RECOGNIZED HERE SINCE THE GENERAL ACCOUNTING OFFICE IS AUTHORIZED ONLY TO SETTLE CLAIMS IN STRICT ACCORDANCE WITH THE LEGAL PRINCIPLES APPLICABLE THERETO AND IT HAS NO AUTHORITY OR JURISDICTION TO ALLOW CLAIMS BASED SOLELY ON MORAL GROUNDS. OUR OFFICE HAS NO AUTHORITY TO COMPROMISE CLAIMS AGAINST THE UNITED STATES AND IS THEREFORE UNABLE TO ACT UPON YOUR PROPOSAL TO NEGOTIATE SUCH COMPROMISE.

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B-142268, MAY 6, 1960

TO TULSA ARMY AND NAVY STORE:

RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED APRIL 16, 1960, IN FURTHER REFERENCE TO OUR DECISION OF APRIL 1, 1960, REGARDING YOUR CLAIM FOR $655.61 UNDER CONTRACT NO. N228S-42834 COVERING THE PURCHASE BY YOU OF A QUANTITY OF SURPLUS BED HAMMOCKS FROM THE NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA.

YOUR LETTER RECOGNIZES THAT LEGALLY YOUR CLAIM CANNOT BE SUSTAINED BUT YOU TAKE THE POSITION THAT THE GOVERNMENT HAS THE DUTY TO FURTHER CONSIDER THE MATTER ON MORAL OR EQUITABLE GROUNDS. YOU STATE THAT AT LEAST THE GOVERNMENT SHOULD BE AGREEABLE TO NEGOTIATING A COMPROMISE IN ACASE OF THIS KIND AND, IF SO, YOU WILL ENDEAVOR TO WORK OUT A FAIR AND EQUITABLE SETTLEMENT TO PRESENT TO US.

THE FACT THAT THERE MAY RESULT SOME BURDENS OR HARDSHIPS TO CONTRACTORS IN FULFILLING THEIR OBLIGATIONS UNDER CONTRACTS WHICH OTHERWISE MIGHT APPEAR TO CONTAIN SOME ELEMENTS WORTHY OF EQUITABLE CONSIDERATION, AS SUGGESTED BY YOU IN THE INSTANT CASE, MAY NOT BE RECOGNIZED HERE SINCE THE GENERAL ACCOUNTING OFFICE IS AUTHORIZED ONLY TO SETTLE CLAIMS IN STRICT ACCORDANCE WITH THE LEGAL PRINCIPLES APPLICABLE THERETO AND IT HAS NO AUTHORITY OR JURISDICTION TO ALLOW CLAIMS BASED SOLELY ON MORAL GROUNDS. LIKEWISE, OUR OFFICE HAS NO AUTHORITY TO COMPROMISE CLAIMS AGAINST THE UNITED STATES AND IS THEREFORE UNABLE TO ACT UPON YOUR PROPOSAL TO NEGOTIATE SUCH COMPROMISE.

IN VIEW OF THE FOREGOING, AND OF THE PREVIOUS DETERMINATION BY OUR OFFICE AS TO THE LEGAL EFFECT OF BOTH THE DISCLAIMER OF WARRANTY AND THE INSPECTION CLAUSES IN A CONTRACT OF SALE OF THIS KIND, WE FIND NOTHING IN THE RECORD TO WARRANT ANY CHANGE IN THE MATTER.

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