B-135607, DEC. 19, 1963
Highlights
TO SCHINDEL AND COOPER: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 23. YOU ALSO STATE THAT YOU ARE UNFAMILIAR WITH THE JUDGMENT OBTAINED BY THE GOVERNMENT AGAINST RED TOP TRANSFER COMPANY. 692.24 FOR THE DAMAGE WAS COMPUTED. IN ADDITION YOU CLAIM THAT THERE IS NO EVIDENCE OF A POLICY SINCE ALL SUCH DOCUMENTS HAVE LONG SINCE BEEN DESTROYED AND THAT THE ONLY NOTIFICATION OF COVERAGE IS FROM LETTERS RECEIVED FROM OUR OFFICE. WE ARE ENCLOSING A COPY OF THE JUDGMENT (WITH OTHER COURT PAPERS) OBTAINED AGAINST RED TOP TRANSFER COMPANY. IN THE ABSENCE OF ANY INDICATION BY YOU WITHIN 30 DAYS THAT YOUR CLIENT WILL REMIT THE REQUIRED AMOUNT. WE WILL BE OBLIGED TO REFER THE MATTER TO THE DEPARTMENT OF JUSTICE FOR COLLECTION.
B-135607, DEC. 19, 1963
TO SCHINDEL AND COOPER:
REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 23, 1963, ACKNOWLEDGING OUR LETTER OF OCTOBER 14, 1963, IN WHICH WE RENEWED OUR REQUEST THAT YOUR CLIENT, THE UNITED STATES FIRE INSURANCE COMPANY, A/C APPLETON AND COX, INC., PAY THE GOVERNMENT'S CLAIM AGAINST RED TOP TRANSFER COMPANY, INC., FOR $1,692.24, TO THE EXTENT OF ITS LIABILITY AS THE CARGO INSURER UNDER ITS INTERSTATE COMMERCE COMMISSION FORM BMC 32 ENDORSEMENT. WE ALSO OUTLINED A NEW PROCEDURE TO BE FOLLOWED BY OUR OFFICE IN FUTURE CASES WHICH SHOULD OPERATE TO GIVE INSURERS MORE EXPEDITIOUS NOTICE OF LOSS AND DAMAGE CLAIMS WHICH THEY MIGHT EVENTUALLY BE REQUIRED TO PAY.
YOU NOW STATE THAT "THE GREAT DELAY IN HANDLING THIS MATTER BY THE GOVERNMENT HAS UNDULY PREJUDICED" YOUR CLIENT, AND THAT IN VIEW OF THE "UNUSUAL CIRCUMSTANCES" THE GOVERNMENT "SHOULD CONSIDER MARKING THIS CLAIM OFF RATHER THAN PRESSING IT TO A CONCLUSION.' YOU ALSO STATE THAT YOU ARE UNFAMILIAR WITH THE JUDGMENT OBTAINED BY THE GOVERNMENT AGAINST RED TOP TRANSFER COMPANY, INC., AND HOW THE AMOUNT OF $1,692.24 FOR THE DAMAGE WAS COMPUTED. IN ADDITION YOU CLAIM THAT THERE IS NO EVIDENCE OF A POLICY SINCE ALL SUCH DOCUMENTS HAVE LONG SINCE BEEN DESTROYED AND THAT THE ONLY NOTIFICATION OF COVERAGE IS FROM LETTERS RECEIVED FROM OUR OFFICE.
OUR LETTERS DATED MAY 8 AND JUNE 21, 1953, FURNISHED YOU INFORMATION AS TO THE BASIS FOR PROCEEDING AGAINST YOUR CLIENT. WE ARE ENCLOSING A COPY OF THE JUDGMENT (WITH OTHER COURT PAPERS) OBTAINED AGAINST RED TOP TRANSFER COMPANY, INC. IN THE LIGHT OF SUCH JUDGMENT, THE COURT ORDER OVERRULING THE INSURED CARRIER'S MOTION FOR A NEW TRIAL, AND THE FORM BMC 32 ENDORSEMENT (COPY ENCLOSED), THERE SHOULD BE NO QUESTION AS TO THE PROPRIETY OF THE AMOUNT JUDICIALLY ESTABLISHED AS DAMAGES AND AS TO THE LIABILITY OF THE INSURER. OUR OFFICE HAS A STATUTORY RESPONSIBILITY TO COLLECT THE CLAIM AGAINST YOUR CLIENT AND HAS NO AUTHORITY TO CONSIDER MARKING THIS CLAIM OFF. IN THE ABSENCE OF ANY INDICATION BY YOU WITHIN 30 DAYS THAT YOUR CLIENT WILL REMIT THE REQUIRED AMOUNT, WE WILL BE OBLIGED TO REFER THE MATTER TO THE DEPARTMENT OF JUSTICE FOR COLLECTION.