B-95450, B-100320, MARCH 23, 1954, 33 COMP. GEN. 398

B-100320,B-95450: Mar 23, 1954

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1954: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 16. ADVISING THAT A JUDGMENT WAS RENDERED IN FAVOR OF THE UNITED STATES IN A SUIT BROUGHT AGAINST COOLEY-CAIN AIRCRAFT CORPORATION. YOU STATE THAT YOU ARE READY TO DISTRIBUTE THE PROCEEDS OF THE JUDGMENT TO THE EMPLOYEES CONCERNED AS PROVIDED IN THE ACT. THAT INTEREST RECOVERED IN AN ACTION OF THIS TYPE WAS NOT FOR DISTRIBUTION TO THE EMPLOYEES CONCERNED BUT WAS FOR COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS UNDER A REASONABLE INTERPRETATION OF THE ACT. THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA HELD THAT INTEREST RECOVERED IN JUDGMENTS RENDERED FOR UNDERPAYMENTS OF WAGES IN SUITS BROUGHT UNDER THE ACT WAS PROPERLY PAYABLE TO THE EMPLOYEES CONCERNED AND COULD NOT BE CONSIDERED THE PROPERTY OF THE UNITED STATES.

B-95450, B-100320, MARCH 23, 1954, 33 COMP. GEN. 398

INTEREST RECOVERED IN JUDGMENT IN ACTION UNDER WALSH-HEALEY ACT- DISTRIBUTION TO EMPLOYEES CONCERNED AMOUNT OF JUDGMENT RENDERED IN FAVOR OF UNITED STATES FOR UNDERPAYMENT OF WAGES DUE EMPLOYEES UNDER WALSH-HEALEY PUBLIC CONTRACTS ACT--- WHICH INCLUDES INTEREST--- MAY BE DISTRIBUTED TO SUCH EMPLOYEES.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF LABOR, MARCH 23, 1954:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 16, 1954, ADVISING THAT A JUDGMENT WAS RENDERED IN FAVOR OF THE UNITED STATES IN A SUIT BROUGHT AGAINST COOLEY-CAIN AIRCRAFT CORPORATION, ET AL., FOR UNDERPAYMENTS OF WAGES DUE EMPLOYEES UNDER THE WALSH-HEALEY PUBLIC CONTRACTS ACT, AND THAT THE AMOUNT OF THE JUDGMENT, WHICH INCLUDES INTEREST, HAS BEEN PAID IN FULL. YOU STATE THAT YOU ARE READY TO DISTRIBUTE THE PROCEEDS OF THE JUDGMENT TO THE EMPLOYEES CONCERNED AS PROVIDED IN THE ACT, BUT DESIRE CONFIRMATION OF YOUR UNDERSTANDING THAT THIS OFFICE NOW ENTERTAINS NO OBJECTION TO THE DISTRIBUTION OF INTEREST, AS WELL AS AMOUNTS REPRESENTING UNDERPAYMENTS OF WAGES, RECOVERED IN JUDGMENTS OF THIS TYPE.

WHILE THIS OFFICE HELD IN DECISION OF FEBRUARY 8, 1951, B-100320, TO YOU, THAT INTEREST RECOVERED IN AN ACTION OF THIS TYPE WAS NOT FOR DISTRIBUTION TO THE EMPLOYEES CONCERNED BUT WAS FOR COVERING INTO THE TREASURY AS MISCELLANEOUS RECEIPTS UNDER A REASONABLE INTERPRETATION OF THE ACT, IN A DECISION RENDERED UNDER DATE OF JULY 2, 1952, IN THE CASE OF PHILADELPHIA JOINT BOARD AMALGAMATED CLOTHING WORKERS OF AMERICA V. UNITED STATES, 106 F.1SUPP. 534, THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA HELD THAT INTEREST RECOVERED IN JUDGMENTS RENDERED FOR UNDERPAYMENTS OF WAGES IN SUITS BROUGHT UNDER THE ACT WAS PROPERLY PAYABLE TO THE EMPLOYEES CONCERNED AND COULD NOT BE CONSIDERED THE PROPERTY OF THE UNITED STATES. SINCE IT WAS RECOGNIZED THAT THE LEGAL QUESTION INVOLVED WAS A CLOSE ONE, THIS OFFICE ADVISED YOU BY LETTER OF AUGUST 13, 1952, B- 100320, THAT THE UNITED STATES WAS NOT CONSIDERED TO BE IN SUFFICIENTLY STRONG A POSITION TO INSIST THAT AN APPEAL BE TAKEN IN THE ABOVE CASE, AND THE ACTING SOLICITOR GENERAL, BEING OF THE SAME OPINION, NO APPEAL WAS TAKEN.

UNDER THE CIRCUMSTANCES, YOU ARE ADVISED THAT THIS OFFICE WILL ENTERTAIN NO OBJECTION TO THE DISTRIBUTION OF INTEREST RECOVERED IN JUDGMENTS OF THIS TYPE TO THE EMPLOYEE CONCERNED.