B-158277, JAN. 20, 1966

B-158277: Jan 20, 1966

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THE FACTS GIVING RISE TO THIS MATTER ARE REPORTED HERE AS FOLLOWS. WAS INJURED DURING THE COURSE OF HIS EMPLOYMENT WHEN HE WAS INVOLVED IN AN AUTOMOBILE ACCIDENT WHICH ALLEGEDLY WAS CAUSED BY THE RECKLESS DRIVING OF ONE CHARLES JERKINS. WARNKE WAS DRIVING A GOVERNMENT- OWNED FALCON AUTOMOBILE WHICH WAS MAINTAINED BY REYNOLDS ELECTRICAL AND ENGINEERING COMPANY. WARNKE WAS INJURED AS A RESULT OF THE ACCIDENT AND COMPENSATION FOR ENSUING LOST DAYS FROM WORK AND HOSPITAL-MEDICAL EXPENSES. HAVE BEEN PAID HIM BY SANDIA AS WORKMAN'S COMPENSATION PAYMENTS. JERKINS' FINANCIAL CONDITION AND PROSPECTS ARE SUCH THAT HE CANNOT PAY SANDIA THE $3. - OF EITHER PAYING OFF 50 PERCENT OF THE REMAINING BALANCE IN FULL SETTLEMENT OR CONTINUING PAYMENTS OF $40 PER MONTH UNTIL FULL RESTITUTION IS MADE.

B-158277, JAN. 20, 1966

TO HONORABLE GLENN T. SEABORG, CHAIRMAN, ATOMIC ENERGY COMMISSION:

BY LETTER DATED DECEMBER 27, 1965, THE CONTROLLER, ATOMIC ENERGY COMMISSION, SUBMITTED FOR OUR CONSIDERATION AN OFFER IN COMPROMISE THAT HAS BEEN RECEIVED BY THE SANDIA CORPORATION, A COST-REIMBURSEMENT CONTRACTOR OF THE ATOMIC ENERGY COMMISSION.

THE FACTS GIVING RISE TO THIS MATTER ARE REPORTED HERE AS FOLLOWS. DECEMBER 5, 1963, TERRY P. WARNKE, AN EMPLOYEE OF SANDIA, WAS INJURED DURING THE COURSE OF HIS EMPLOYMENT WHEN HE WAS INVOLVED IN AN AUTOMOBILE ACCIDENT WHICH ALLEGEDLY WAS CAUSED BY THE RECKLESS DRIVING OF ONE CHARLES JERKINS. AT THE TIME OF THE ACCIDENT MR. WARNKE WAS DRIVING A GOVERNMENT- OWNED FALCON AUTOMOBILE WHICH WAS MAINTAINED BY REYNOLDS ELECTRICAL AND ENGINEERING COMPANY. THE ACCIDENT OCCURRED WHEN MR. JERKINS DROVE HIS CADILLAC AUTOMOBILE ACROSS A CENTER LINE INTO THE OPPOSING LANE OF TRAFFIC AND COLLIDED HEAD-ON WITH THE AUTOMOBILE OPERATED BY MR. WARNKE. MR. WARNKE WAS INJURED AS A RESULT OF THE ACCIDENT AND COMPENSATION FOR ENSUING LOST DAYS FROM WORK AND HOSPITAL-MEDICAL EXPENSES, TOTALING $3,989.35, HAVE BEEN PAID HIM BY SANDIA AS WORKMAN'S COMPENSATION PAYMENTS.

THE RECORD SHOWS THAT MR. JERKINS' FINANCIAL CONDITION AND PROSPECTS ARE SUCH THAT HE CANNOT PAY SANDIA THE $3,989.35 IN A LUMP SUM. CONSEQUENTLY, HE HAS, THROUGH HIS ATTORNEY, OFFERED TO MAKE SETTLEMENT AT THE RATE OF $40 PER MONTH WITHOUT INTEREST WITH THE OPTION--- AFTER 12 MONTHS OF PAYMENTS--- OF EITHER PAYING OFF 50 PERCENT OF THE REMAINING BALANCE IN FULL SETTLEMENT OR CONTINUING PAYMENTS OF $40 PER MONTH UNTIL FULL RESTITUTION IS MADE.

THE CONTROLLER ADVISED IN HIS LETTER OF DECEMBER 27 THAT WHILE THE TORT CLAIM OF SANDIA CANNOT BE ASSIGNED TO THE GOVERNMENT UNDER NEVADA LAW, THE ATOMIC ENERGY COMMISSION HAS THE CONTRACT RIGHT TO APPROVE THE DISPOSITION OF THE SANDIA CLAIM.

IN VIEW OF MR. JERKINS' OBVIOUS INABILITY TO MAKE FULL PAYMENT ON SANDIA'S CLAIM, THIS OFFICE WOULD HAVE NO OBJECTION TO THE ACCEPTANCE OF THE COMPROMISE OFFER THAT HAS BEEN MADE. IT IS ASSUMED THAT, AS PAYMENTS ARE RECEIVED BY SANDIA FROM MR. JERKINS, TIMELY APPROPRIATE ADJUSTMENTS WILL BE MADE IN AMOUNTS WHICH MAY BE DUE SANDIA UNDER THE CONTRACT WITH THE ATOMIC ENERGY COMMISSION. INASMUCH AS THE GOVERNMENT, IN THE FINAL ANALYSIS, WILL APPARENTLY ABSORB THE $3,989.35 THROUGH COST REIMBURSEMENTS WE FEEL THAT THIS ASSUMPTION IS WARRANTED.

WE NOTE THAT THE RECORD INDICATES THAT THERE WAS A COMPLETE LOSS OF THE GOVERNMENT-OWNED VEHICLE IN THE ACCIDENT AND THAT MR. JERKINS HAS OBLIGATED HIMSELF TO PAY REYNOLDS FOR THE DAMAGE DONE TO THE VEHICLE. IS TO BE UNDERSTOOD THAT OUR ACQUIESCENCE IN THIS MATTER GOES ONLY TO THE WORKMAN'S COMPENSATION PAYMENTS THAT ARE INVOLVED AND DOES NOT INCLUDE THE DAMAGES DONE TO THE GOVERNMENT-OWNED AUTOMOBILE.