B-129946, FEB. 4, 1957

B-129946: Feb 4, 1957

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IT IS UNDERSTOOD INFORMALLY THAT THE CHECKS IN SATISFACTION OF THE JUDGMENT WERE REFUSED FOR THE REASON THAT NO INTEREST WAS ALLOWED IN THE SETTLEMENT. YOUR DEMAND FOR INTEREST AND THE REFUSAL TO ACCEPT THE CHECKS WILL BE CONSIDERED AS A REQUEST FOR REVIEW OF THE SETTLEMENT ISSUED BY OUR CLAIMS DIVISION. THERE WERE NO FUNDS AVAILABLE FOR THE PAYMENT OF JUDGMENTS RENDERED AGAINST THE UNITED STATES AND IT WAS NECESSARY THAT THE AMOUNT OF THE JUDGMENT BE CERTIFIED TO THE CONGRESS FOR A SPECIFIC APPROPRIATION FOR PAYMENT. THAT SECTION PROVIDES: "THERE ARE APPROPRIATED. 000 IN ANY ONE CASE) RENDERED BY THE DISTRICT COURTS AND THE COURT OF CLAIMS AGAINST THE UNITED STATES WHICH HAVE BECOME FINAL.

B-129946, FEB. 4, 1957

TO KLONSKY AND STEINMAN, COUNSELLORS AT LAW:

YOUR LETTERS OF OCTOBER 31 AND NOVEMBER 14, 1956, AND JANUARY 2 AND 21, 1957, MAKE DEMAND FOR PAYMENT OF INTEREST ON THE JUDGMENT IN THE ABOVE ENTITLED CASE FROM JUNE 16, 1955, TO DATE OF THE APPROPRIATION ACT. OUR CLAIMS DIVISION, PURSUANT TO SECTION 1302 OF THE SUPPLEMENTAL APPROPRIATION ACT OF 1957, PUBLIC LAW 814, APPROVED JULY 27, 1956, 70 STAT. 694, ISSUED A CERTIFICATE OF SETTLEMENT IN THE AMOUNT OF THE JUDGMENT (WITHOUT INTEREST), PLUS COSTS, AND FORWARDED THE CHECKS TO THE UNITED STATES ATTORNEY, NEW YORK, NEW YORK, FOR DELIVERY TO THE PARTIES ENTITLED. IT IS UNDERSTOOD INFORMALLY THAT THE CHECKS IN SATISFACTION OF THE JUDGMENT WERE REFUSED FOR THE REASON THAT NO INTEREST WAS ALLOWED IN THE SETTLEMENT. YOUR DEMAND FOR INTEREST AND THE REFUSAL TO ACCEPT THE CHECKS WILL BE CONSIDERED AS A REQUEST FOR REVIEW OF THE SETTLEMENT ISSUED BY OUR CLAIMS DIVISION.

GENERALLY SPEAKING, PRIOR TO ENACTMENT OF SECTION 1302 OF PUBLIC LAW 814 INTO LAW, THERE WERE NO FUNDS AVAILABLE FOR THE PAYMENT OF JUDGMENTS RENDERED AGAINST THE UNITED STATES AND IT WAS NECESSARY THAT THE AMOUNT OF THE JUDGMENT BE CERTIFIED TO THE CONGRESS FOR A SPECIFIC APPROPRIATION FOR PAYMENT. SECTION 1302 ESTABLISHED A PERMANENT APPROPRIATION FOR THE PAYMENT OF JUDGMENTS (NOT IN EXCESS OF $100,000) AND INTEREST THEREON INCERTAIN CASES. THAT SECTION PROVIDES:

"THERE ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE APPROPRIATED, AND OUT OF POSTAL REVENUES, RESPECTIVELY, SUCH SUMS AS MAY HEREAFTER BE NECESSARY FOR THE PAYMENT, NOT OTHERWISE PROVIDED FOR, AS CERTIFIED BY THE COMPTROLLER GENERAL, OF JUDGMENTS (NOT IN EXCESS OF $100,000 IN ANY ONE CASE) RENDERED BY THE DISTRICT COURTS AND THE COURT OF CLAIMS AGAINST THE UNITED STATES WHICH HAVE BECOME FINAL, TOGETHER WITH SUCH INTEREST AND COSTS AS MAY BE SPECIFIED IN SUCH JUDGMENTS OR OTHERWISE AUTHORIZED BY LAW: PROVIDED, THAT, WHENEVER A JUDGMENT OF A DISTRICT COURT TO WHICH THE PROVISIONS OF SECTION 2411 (B) OF TITLE 28, U.S.C. APPLY, IS PAYABLE FROM THIS APPROPRIATION, INTEREST SHALL BE PAID THEREON ONLY WHEN SUCH JUDGMENT BECOMES FINAL AFTER REVIEW ON APPEAL OR PETITION BY THE UNITED STATES, AND THEN ONLY FROM THE DATE OF THE FILING OF THE TRANSCRIPT THEREOF IN THE GENERAL ACCOUNTING OFFICE TO THE DATE OF THE MANDATE OF AFFIRMANCE * * *.'

THE RECORD HERE SHOWS THE ORIGINAL JUDGMENT OF THE DISTRICT COURT WAS DATED JUNE 16, 1955, THAT THE GOVERNMENT APPEALED AND THAT THE CIRCUIT COURT OF APPEALS, SECOND CIRCUIT, ON JUNE 6, 1956, AFFIRMED THE DISTRICT COURT JUDGMENT. THE CLAIM, WAS NOT OF A TYPE WHICH DRAWS INTEREST AS A MATTER OF LAW NOR DOES THE JUDGMENT SPECIFY INTEREST SHOULD BE ALLOWED. INTEREST IS PAYABLE ON THE JUDGMENT ONLY BY VIRTUE OF 28 U.S.C. 2411 (B). AS TO JUDGMENT PROPERLY PAYABLE UNDER SECTION 1302 OF PUBLIC LAW 814, INTEREST FORMERLY AUTHORIZED UNDER 28 U.S.C. 2411 (B) IF LIMITED AND RESTRICTED BY THE LANGUAGE OF THE SECTION AND THE INTENT OF THE CONGRESS IN ENACTING IT.

SECTION 1302 APPROPRIATES SUCH MONEYS AS THEREAFTER MAY BE NECESSARY TO PAY JUDGMENTS, LESS THAN $100,000 IN ANY CASE, RENDERED BY THE DISTRICT COURTS AGAINST THE UNITED STATES WHICH HAVE BECOME FINAL. THE JUDGMENT IN THE INSTANT CASE IS IN AN AMOUNT LESS THAN $100,000, WAS RENDERED BY A DISTRICT COURT AGAINST THE UNITED STATES AND HAS BECOME FINAL. THERE APPEARS TO BE NO ROOM FOR DOUBT THAT IT WAS HENCE PROPERLY PAYABLE FROM THE APPROPRIATION MADE BY SECTION 1302.

THE INTENT AND EFFECT OF THE PERTINENT LANGUAGE OF 1302 WAS TO CHANGE THE PROCEDURE WITH RESPECT TO DISTRICT COURT JUDGMENTS, PAYABLE FROM THE APPROPRIATION, SO AS TO PERMIT THE PAYMENT OF INTEREST ON JUDGMENTS, TO WHICH THE PROVISIONS OF 28 U.S.C. 2411 (B) APPLY, ONLY IN CASES APPEALED BY THE UNITED STATES AND AFFIRMED ON APPEAL. ALSO, THE PROVISO GENERALLY PERMITS PAYMENTS IN SUCH CASES ONLY FROM THE DATE OF FILING OF THE TRANSCRIPT OF JUDGMENT WITH THE GENERAL ACCOUNTING OFFICE TO THE DATE OF MANDATE OF AFFIRMANCE BY THE APPELLATE COURT. HOWEVER, IT IS RECOGNIZED THAT AT THE TIME THE ORIGINAL DISTRICT COURT JUDGMENT WAS RENDERED THERE WAS NO REQUIREMENT THAT JUDGMENTS BE FILED HERE AND AS THERE WAS NO ACTION WE PROPERLY COULD TAKE DURING THE PENDENCY OF THE APPEAL, IT IS LIKELY THE JUDGMENT WOULD HAVE BEEN RETURNED IF IT HAD BEEN FILED. ACCORDINGLY, AND AS EXCEPT FOR SUCH NONFILING, THE STANDARDS ESTABLISHED BY SECTION 1302 FOR PAYMENT OF INTEREST DURING THE PENDENCY OF THE APPEAL HAVE BEEN SATISFIED, WE HAVE TODAY AUTHORIZED OUR CLAIMS DIVISION TO ALLOW INTEREST ON THE JUDGMENT FROM DATE OF THE ORIGINAL COURT JUDGMENT, JUNE 16, 1955--- WHICH ASSUMES THE FILING IN THIS OFFICE, ON THE DATE OF ENTRY OF THE ORIGINAL JUDGMENT--- TO THE DATE OF THE MANDATE OF AFFIRMANCE. UPON OUR OBTAINING FROM THE CLERK, UNITED STATES COURT OF APPEALS, SECOND CIRCUIT, INFORMATION AS TO THE DATE OF THE MANDATE OF AFFIRMANCE TO THE DISTRICT COURT, A SUPPLEMENTAL SETTLEMENT FOR SUCH INTEREST, IF OTHERWISE CORRECT, WILL ISSUE, THAT AMOUNT TOGETHER WITH THE AMOUNT PREVIOUSLY PAID TO BE IN FULL AND FINAL SETTLEMENT OF THE JUDGMENT, INTEREST, AND COSTS, PAYABLE THEREUNDER.

WE BELIEVE THAT YOU WILL UNDERSTAND, FROM WHAT IS SET OUT ABOVE, THAT NO INTEREST PROPERLY CAN BE ALLOWED FOR ANY PERIOD AFTER THE DATE OF THE MANDATE OF AFFIRMANCE.

A COPY OF THIS DECISION IS BEING TRANSMITTED TO THE DEPARTMENT OF JUSTICE IN ORDER THAT THE UNITED STATES ATTORNEY CONCERNED MAY BE APPROPRIATELY ADVISED AND AUTHORIZED TO RELEASE THE CHECKS WHICH IT APPEARS WERE PREVIOUSLY REFUSED, TOGETHER WITH THE SUPPLEMENTARY CHECKS COVERING THE INTEREST.

Nov 20, 2017

Nov 16, 2017

  • HBI-GF, JV
    We deny the protest.
    B-415036
  • Epsilon Systems Solutions, Inc.
    We dismiss the protest because it raises a matter of contract administration over which we do not exercise jurisdiction.
    B-414410.4

Nov 15, 2017

Nov 14, 2017

Nov 9, 2017

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