B-149657, FEB. 9, 1965

B-149657: Feb 9, 1965

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 16. IN WHICH REVIEW WAS REQUESTED OF THE SETTLEMENT ACTION TAKEN ON YOUR CLAIMS COVERED BY OUR FILES TK-766968. THE CLAIMS WERE DISALLOWED ON THE BASIS OF A MUTUAL AGREEMENT REACHED IN FEBRUARY 1958. THE TRANSPORTATION SERVICES IN QUESTION WERE PERFORMED IN SEPTEMBER 1953. TITLE AND INTEREST IN ALL MONEYS AND CLAIMS FOR MONEYS DUE OR TO BECOME DUE FOR THE SERVICES WERE DULY ASSIGNED TO THE AMERICAN SECURITY AND TRUST COMPANY. YOUR CLAIMS WERE RECEIVED IN OUR OFFICE IN SEPTEMBER 1963. LESS THAN TEN YEARS AFTER THE SERVICES WERE PERFORMED. TITLE TO THE CLAIMS WAS STILL VESTED IN THE TRUST COMPANY BY VIRTUE OF THE ASSIGNMENTS. IT WAS NOT UNTIL OCTOBER 1963.

B-149657, FEB. 9, 1965

TO SATURN AIRWAYS, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 16, 1964, IN WHICH REVIEW WAS REQUESTED OF THE SETTLEMENT ACTION TAKEN ON YOUR CLAIMS COVERED BY OUR FILES TK-766968, TK-766969, TK-766970 AND TK-766971. THE CLAIMS WERE DISALLOWED ON THE BASIS OF A MUTUAL AGREEMENT REACHED IN FEBRUARY 1958, AND YOU QUESTION WHETHER THE AGREEMENT PRECLUDED ADMINISTRATIVE PAYMENT OF THE CLAIMS. FOR REASONS SET FORTH BELOW, WE DO NOT FIND IT NECESSARY TO REACH THAT QUESTION AS THE CLAIMS MUST BE DISALLOWED FOR ANOTHER COMPELLING REASON.

THE TRANSPORTATION SERVICES IN QUESTION WERE PERFORMED IN SEPTEMBER 1953. AT THAT TIME, ALL RIGHT, TITLE AND INTEREST IN ALL MONEYS AND CLAIMS FOR MONEYS DUE OR TO BECOME DUE FOR THE SERVICES WERE DULY ASSIGNED TO THE AMERICAN SECURITY AND TRUST COMPANY, 15TH STREET AND PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C., PURSUANT TO THE ASSIGNMENT OF CLAIMS ACT OF 1940, 54 STAT. 1029, 31 U.S.C. 203, 41 U.S.C. 15.

YOUR CLAIMS WERE RECEIVED IN OUR OFFICE IN SEPTEMBER 1963, LESS THAN TEN YEARS AFTER THE SERVICES WERE PERFORMED. AT THAT TIME, HOWEVER, TITLE TO THE CLAIMS WAS STILL VESTED IN THE TRUST COMPANY BY VIRTUE OF THE ASSIGNMENTS, AND YOU HAD NO LEGAL RIGHT TO PRESENT THOSE CLAIMS TO OUR OFFICE FOR CONSIDERATION. IT WAS NOT UNTIL OCTOBER 1963, MORE THAN TEN YEARS AFTER THE SERVICES WERE PERFORMED, THAT RELEASES AND REASSIGNMENTS OF THE CLAIMS IN QUESTION WERE EXECUTED BY THE TRUST COMPANY, THEREBY REVESTING TITLE TO THE CLAIMS IN SATURN AIRWAYS AS THE SUCCESSOR TO ALL AMERICAN AIRWAYS, THE SERVICE CARRIER. EVEN ASSUMING THE VALIDITY OF THE REASSIGNMENTS (THE ASSIGNMENT OF CLAIMS ACT PERMITS ONLY ONE ASSIGNMENT UNLESS THE CONTRACT OTHERWISE PROVIDES), IT IS CLEAR THAT YOUR CLAIMS WERE NOT PERFECTED AND FILED UNTIL OCTOBER 1963, MORE THAN TEN YEARS AFTER THE SERVICES WERE PERFORMED AND AFTER THE EXPIRATION OF THE TEN-YEAR STATUTE OF LIMITATIONS GOVERNING THE JURISDICTION OF OUR OFFICE, 31 U.S.C. 71A. THE SECTION READS, IN PERTINENT PART:

"* * * EVERY CLAIM OR DEMAND * * * AGAINST THE UNITED STATES COGNIZABLE BY THE GENERAL ACCOUNTING OFFICE * * * SHALL BE FOREVER BARRED UNLESS SUCH CLAIM * * * IS RECEIVED IN SAID OFFICE WITHIN TEN FULL YEARS AFTER THE DATE SUCH CLAIM FIRST ACCRUED * * *.'

THE CLAIMS IN QUESTION ACCRUED AT THE TIME OF PERFORMANCE OF THE SERVICES AND YOUR CLAIMS FOR UNDERCHARGES WERE NOT PERFECTED, AND THUS COULD NOT BE CONSIDERED FILED, UNTIL OCTOBER 1963, MORE THAN TEN YEARS LATER. WE FIND THAT THE CLAIMS ARE BARRED BY THE CITED STATUTE AND THE DISALLOWANCES ARE THEREFORE SUSTAINED.