B-145712, JUN. 2, 1964
Highlights
WAS FINALLY ALLOWED BY OUR SETTLEMENT OF APRIL 23. YOU FEEL YOU ARE ENTITLED TO INTEREST THEREON. DISALLOWED THE CLAIM FOR THE REASON THAT INTEREST IS PAYABLE ONLY WHEN PROVIDED FOR IN LEGAL AND PROPER CONTRACTS OR WHERE AUTHORIZED BY STATUTE. YOU SAY THAT YOU ARE ENTITLED TO INTEREST INASMUCH AS THE GOVERNMENT EXACTS INTEREST FROM CITIZENS FOR TARDY PAYMENTS DUE FROM THEM. THE RECORD SHOWS THAT CONSIDERABLE DIFFICULTY WAS ENCOUNTERED IN LOCATING YOUR OLD PAY RECORDS OR SECURING VERIFICATIONS THEREOF WHICH WE WERE REQUIRED TO DO BEFORE THE CLAIM FOR COMPENSATION COULD BE ALLOWED. INDIVIDUALS INDEBTED TO THE UNITED STATES ARE PERMITTED TO MAKE REPAYMENTS THEREOF OR HAVE SUCH DEBTS SETTLED WITHOUT PAYMENT OF INTEREST UNLESS SUCH INTEREST IS SPECIFICALLY PROVIDED FOR.
B-145712, JUN. 2, 1964
TO PROFESSOR KALMAN J. DEJUHASZ:
YOUR LETTER OF MARCH 27, 1964, POINTS OUT THAT SINCE YOUR CLAIM FOR ADDITIONAL COMPENSATION FOR THE PERIOD MARCH 15, 1953, TO OCTOBER 24, 1959, WAS FINALLY ALLOWED BY OUR SETTLEMENT OF APRIL 23, 1963, AFTER CONSIDERABLE DELAY, YOU FEEL YOU ARE ENTITLED TO INTEREST THEREON. YOU MADE CLAIM ON JULY 5, 1963, FOR INTEREST AT THE RATE OF 6 PERCENT PER YEAR AND OUR CLAIMS SETTLEMENT OF AUGUST 22, 1963, DISALLOWED THE CLAIM FOR THE REASON THAT INTEREST IS PAYABLE ONLY WHEN PROVIDED FOR IN LEGAL AND PROPER CONTRACTS OR WHERE AUTHORIZED BY STATUTE.
YOU SAY THAT YOU ARE ENTITLED TO INTEREST INASMUCH AS THE GOVERNMENT EXACTS INTEREST FROM CITIZENS FOR TARDY PAYMENTS DUE FROM THEM. YOU SUGGEST THAT YOU WOULD BE WILLING TO COME TO WASHINGTON TO DISCUSS THE MATTER IN ALL ITS ASPECTS.
THE RECORD SHOWS THAT CONSIDERABLE DIFFICULTY WAS ENCOUNTERED IN LOCATING YOUR OLD PAY RECORDS OR SECURING VERIFICATIONS THEREOF WHICH WE WERE REQUIRED TO DO BEFORE THE CLAIM FOR COMPENSATION COULD BE ALLOWED. THIS ACCOUNTED FOR THE DELAY IN THE MATTER.
INDIVIDUALS INDEBTED TO THE UNITED STATES ARE PERMITTED TO MAKE REPAYMENTS THEREOF OR HAVE SUCH DEBTS SETTLED WITHOUT PAYMENT OF INTEREST UNLESS SUCH INTEREST IS SPECIFICALLY PROVIDED FOR. THIS WAS TRUE WITH RESPECT TO YOUR INDEBTEDNESS IN CONNECTION WITH THE SHIPMENT OF YOUR HOUSEHOLD EFFECTS FOR WHICH YOU WERE NOT REQUIRED TO PAY INTEREST.
UNDER THE FACTS AND CIRCUMSTANCES HERE INVOLVED WE MUST SUSTAIN OUR DISALLOWANCE OF AUGUST 22, 1963, SINCE THE RULE IS WELL ESTABLISHED THAT IN THE ABSENCE OF A CONTRACT OR STATUTE EVINCING A CONTRARY INTENTION, INTEREST DOES NOT RUN UPON CLAIMS AGAINST THE GOVERNMENT. SMYTH V. UNITED STATES, 302 U.S. 329, AT PAGE 353, AND CASES CITED THERE.
WHILE WE ARE AVAILABLE FOR A MEETING WITH YOU AT ANY TIME, IT DOES NOT APPEAR THAT ANY USEFUL PURPOSE WOULD BE SERVED IN YOUR COMING TO WASHINGTON TO DISCUSS THE MATTER SINCE, IN THE ABSENCE OF AN AUTHORIZATION FOR THE PAYMENT OF INTEREST, WE WOULD HAVE NO BASIS UPON WHICH TO ALLOW YOUR CLAIM.