B-135607, JUN. 21, 1963

B-135607, JUN. 21, 1963

TO SCHINDEL AND COOPER:

WE MAKE REFERENCE TO YOUR LETTER OF MAY 20, 1963, WHICH WAS ACKNOWLEDGED MAY 27, CONCERNING OUR CLAIM OF $1,692.24 AGAINST THE RED TOP TRANSFER COMPANY, INC., AND YOUR CLIENT, THE UNITED STATES FIRE INSURANCE COMPANY, A/C APPLETON AND COX, INC.

CONCERNING THE EQUITIES OF OUR CLAIM, RAISED IN YOUR LETTERS OF JANUARY 29 AND MAY 20, 1963, THIS OFFICE IS AUTHORIZED ONLY TO SETTLE CLAIMS BASED ON APPLICABLE LEGAL PRINCIPLES, AND NO AUTHORITY OR JURISDICTION EXISTS TO SETTLE CLAIMS ON THE BASIS OF ANY MORAL OR EQUITABLE OBLIGATION OF THE GOVERNMENT. YOUR ATTENTION IS INVITED TO THE CASE OF PACIFIC HARDWARE AND STEEL CO. V. UNITED STATES, 49 CT.CL. 327, 335, IN WHICH THE COURT SAID:

"IT IS UNQUESTIONABLY TRUE THAT AN OFFICIAL OF THE GOVERNMENT IS NOT AUTHORIZED TO GIVE AWAY OR REMIT A CLAIM DUE THE GOVERNMENT. THIS RULE IS GROUNDED IN A SOUND PUBLIC POLICY AND IS NOT TO BE WEAKENED * * *.'

ALSO, SEE BAUSCH AND LOMB OPTICAL CO. V. UNITED STATES, 78 CT.CL. 584, 607; 14 COMP. GEN. 897; 19 COMP. GEN. 48, 51.

WE REGRET THE FACT THAT THE RED TOP TRANSFER COMPANY, INC., FAILED TO NOTIFY YOUR CLIENT OF THE DAMAGED PROCESSING BLUEPRINT MACHINE; HOWEVER, WE REITERATE THAT THE RED TOP TRANSFER COMPANY WAS HELD LIABLE IN A COURT ACTION IN WHICH A JUDGMENT OF $5,230.07 WAS RENDERED BY THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA IN CIVIL ACTION NO. 883. THE JUDGMENT DID INCLUDE AN ALLOWANCE OF $1,692.24 FOR THE DAMAGED MACHINE.

SINCE YOU HAVE RAISED THE ISSUES OF UNREASONABLE DELAY AND LIMITATION OF ACTIONS, WE REFER TO THE ESTABLISHED PRINCIPLE OF PUBLIC POLICY THAT LACHES IS NOT IMPUTABLE TO THE GOVERNMENT, AND THAT THE UNITED STATES IS NOT BOUND BY STATE STATUTES OF LIMITATION UNLESS CONGRESS HAS CLEARLY MANIFESTED ITS INTENTION THAT IT SHOULD BE SO BOUND. UNITED STATES V. SUMMERLIN, 310 U.S. 414, 16; GUARANTY TRUST CO. V. UNITED STATES, 304 U.S. 126, 132; JACKSONVILLE PAPER CO. V. TOBIN 206 F.2D 333, 334; E. I. DU PONT DE NEMOURS AND CO. V. DAVIS 264 U.S. 456, 462. REGARDING YOUR REFERENCE TO THE UNITED STATES AS "A THIRD PARTY WHO IS NOT PRIVY TO THE CONTRACT OF INSURANCE," SEE THE COMPLETE ANSWER TO THAT CONTENTION ON PAGES ONE AND TWO OF OUR PRIOR LETTER TO YOU DATED MAY 8, 1963, B-135607.

THE INSURANCE COMPANY'S REMITTANCE, MADE PAYABLE TO THE UNITED STATES GENERAL ACCOUNTING OFFICE, SHOULD BE SENT HERE PROMPTLY TO AVOID THE NECESSITY FOR FURTHER COLLECTION PROCEEDINGS.