B-122777, I-18913, MAR. 7, 1956

B-122777: Mar 7, 1956

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DOING BUSINESS AS GOODRICH MANUFACTURING COMPANY: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 27. YOU WERE ADVISED THAT SUPPLEMENTS 3 AND 4 TO THE CONTRACTS ADDED SPECIAL TOOLING AND GOVERNMENT-FURNISHED PROPERTY CLAUSES TO THE CONTRACTS AT NO CHANGE IN THE PRICES STIPULATED THEREIN. YOU WERE ADVISED ALSO THAT TITLE TO THE TOOLING AND EQUIPMENT DESCRIBED IN PROGRESS-PAYMENT ARTICLES OF THE CONTRACTS AS AMENDED WAS CLAIMED BY THE GOVERNMENT ON THE BASIS THAT SUCH ARTICLES PROVIDED IN SUBSTANCE THAT TITLE TO THE TOOLS AND EQUIPMENT PASSED TO THE GOVERNMENT UPON THE MAKING OF ANY PROGRESS PAYMENTS AND THAT WHILE YOU CLAIMED THAT THIS SPECIAL TOOLING WAS FOR THE MOST PART CAPITAL EQUIPMENT. VIEW OF SUCH FACT YOU WERE ADVISED THAT YOUR CONTENTION THAT THE GOVERNMENT AGREED TO PURCHASE SUCH EQUIPMENT AND TOOLS AND TO PAY THE ADDITIONAL SUM OF $164.

B-122777, I-18913, MAR. 7, 1956

TO COY C. GOODRICH, DOING BUSINESS AS GOODRICH MANUFACTURING COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 27, 1955, IN EFFECT REQUESTING REVIEW OF SETTLEMENT DATED SEPTEMBER 7, 1955, WHICH DISALLOWED YOUR CLAIM FOR $164,413.12 PLUS INTEREST, REPRESENTING THE TOTAL AMOUNT DUE FOR TOOLS COVERED BY CONTRACTS NOS. DA-11-070-ORD 6384 AND DA-19-058- ORD-7015, DATED FEBRUARY 29, AND JUNE 30, 1952, RESPECTIVELY, AS MODIFIED AND SUPPLEMENTED.

IN THE SETTLEMENT OF SEPTEMBER 7, 1955, YOU WERE ADVISED THAT SUPPLEMENTS 3 AND 4 TO THE CONTRACTS ADDED SPECIAL TOOLING AND GOVERNMENT-FURNISHED PROPERTY CLAUSES TO THE CONTRACTS AT NO CHANGE IN THE PRICES STIPULATED THEREIN. YOU WERE ADVISED ALSO THAT TITLE TO THE TOOLING AND EQUIPMENT DESCRIBED IN PROGRESS-PAYMENT ARTICLES OF THE CONTRACTS AS AMENDED WAS CLAIMED BY THE GOVERNMENT ON THE BASIS THAT SUCH ARTICLES PROVIDED IN SUBSTANCE THAT TITLE TO THE TOOLS AND EQUIPMENT PASSED TO THE GOVERNMENT UPON THE MAKING OF ANY PROGRESS PAYMENTS AND THAT WHILE YOU CLAIMED THAT THIS SPECIAL TOOLING WAS FOR THE MOST PART CAPITAL EQUIPMENT, YOU NEVERTHELESS INCLUDED SUCH TOOLING IN YOUR PROGRESS-PAYMENT REQUESTS. VIEW OF SUCH FACT YOU WERE ADVISED THAT YOUR CONTENTION THAT THE GOVERNMENT AGREED TO PURCHASE SUCH EQUIPMENT AND TOOLS AND TO PAY THE ADDITIONAL SUM OF $164,413.12 EITHER IN CASH OR BY WAY OF CREDIT AGAINST THE UNLIQUIDATED PROGRESS-PAYMENTS, WAS WITHOUT MERIT.

IT NOW APPEARS THAT YOUR PETITION FOR DISMISSAL OF THE CHAPTER XI BANKRUPTCY PROCEEDINGS HAS BEEN DENIED BY THE REFEREE AND THAT THE COURT HAS AFFIRMED THE REFEREE'S ACTION. IT ALSO IS UNDERSTOOD FROM INFORMATION RECEIVED FROM THE DEPARTMENT OF JUSTICE THAT A PETITION FOR RECOVERY OF THE PROPERTY INVOLVED IN YOUR CLAIM HAS BEEN FILED BY THE GOVERNMENT AND IS PENDING BEFORE THE BANKRUPTCY COURT. UNDER SUCH CIRCUMSTANCES, AND SINCE THE PROPERTY, INCLUDING THE TOOLING AND MACHINERY COVERED BY YOUR CLAIM, IS IN THE HANDS OF A RECEIVER APPOINTED BY THE COURT, WE WOULD NOT BE WARRANTED IN TAKING ANY FURTHER ACTION ON YOUR CLAIM AT THIS TIME.