B-127649, JUL. 9, 1956

B-127649, JUL. 9, 1956

TO CHIEF, COLLECTION BRANCH, SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER:

REFERENCE IS MADE TO YOUR LETTERS OF JANUARY 12 AND APRIL 6, 1956, RELATIVE TO THE MATTER OF THE INDEBTEDNESS OF MRS. MARGOT M. DRAUGHON, A CIVILIAN EMPLOYEE OF THE DEPARTMENT OF THE AIR FORCE, TO THE UNITED STATES FOR ALLOTMENT PAYMENTS MADE TO HER ERRONEOUSLY INCIDENT TO THE MILITARY SERVICE OF HER FORMER HUSBAND, CHARLES R. DRAUGHON, ARMY SERVICE NO. 6 971 596.

MR. DRAUGHON'S REPRESENTATIONS AS TO THE DISPOSITION OF THE AMOUNTS PAID TO HER ERRONEOUSLY CANNOT BE CONSIDERED AS ABSOLVING HER FROM THE LEGAL LIABILITY OF REFUNDING THE AMOUNT DUE TO THE GOVERNMENT. THE UNITED STATES CANNOT BE BOUND OR ESTOPPED BY AN ERRONEOUS PAYMENT MADE THROUGH ADMINISTRATIVE ERROR BY ITS OFFICERS, WHETHER MADE UNDER MISTAKE OF FACT OR MISTAKE OF LAW, AND PARTIES RECEIVING SUCH ERRONEOUS PAYMENTS ACQUIRE NO RIGHT TO THEM BUT ARE LIABLE IN EQUITY AND GOOD CONSCIENCE TO REFUND THEM. NEITHER THE FINANCIAL HARDSHIP WHICH MIGHT RESULT BY REASON OF COLLECTION NOR THE FACT THAT THE PAYMENTS MAY HAVE BEEN RECEIVED IN GOOD FAITH, OR THAT MRS. DRAUGHON RECEIVED NO DIRECT BENEFIT FROM THE PROCEEDS, AFFECTS HERE LIABILITY. UNDER SECTION 1 OF THE ACT OF JULY 15, 1954, 68 STAT. 482, THE COLLECTION OF THE DEBT IN THIS CASE IS AT THIS TIME A MATTER FOR YOUR DEPARTMENT. PRESUMABLY, IN ORDER TO MINIMIZE ANY HARDSHIP, FAVORABLE CONSIDERATION WOULD BE GIVEN TO LIQUIDATING THE INDEBTEDNESS BY REGULAR NOMINAL MONTHLY INSTALLMENTS UNTIL SUCH TIME AS THE DEBTOR'S FINANCIAL CONDITION IMPROVES TO THE POINT WHERE SUBSTANTIAL PAYMENTS MAY BE MADE.