B-159953, OCT. 27, 1966

B-159953: Oct 27, 1966

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READS IN PART: "IT IS. DO HAVE AND RECOVER FROM THE DEFENDANT. WHICH SUM IS TO BE PAID OUT OF FUNDS PRESENTLY HELD BY THE FEDERAL AVIATION AGENCY AND THAT WHEN SAID SUM IS DELIVERED TO PLAINTIFF. WILL FOREVER BE BARRED TO ASSERT ANY CLAIM OR TITLE TO SAID FUNDS.'. WE HAVE BEEN INFORMALLY ADVISED BY THE DEPARTMENT OF JUSTICE THAT. IT LONG HAS BEEN THE RULE OF THE ACCOUNTING OFFICERS THAT UPON COMPLETION OF THE CONTRACT WORK THE CONTRACTOR IS ENTITLED TO BE PAID THE CONTRACT PRICE EVEN THOUGH THERE MAY BE UNPAID CLAIMS OF SUBCONTRACTORS OUTSTANDING AGAINST IT.10 COMP.

B-159953, OCT. 27, 1966

TO AUTHORIZED CERTIFYING OFFICER, FEDERAL AVIATION AGENCY:

BY LETTER DATED AUGUST 15, 1966, WITH ENCLOSURES, YOU FORWARDED A VOUCHER IN FAVOR OF UNITED BUILDING MAINTENANCE, INC., IN THE AMOUNT OF $2,543.17, REPRESENTING FINAL PAYMENT UNDER CONTRACT NO. FA65SW-161 WITH MANAGEMENT SERVICES, INC., AND REQUESTED OUR ADVICE WHETHER SUCH AMOUNT MAY BE PAID TO THE PAYEE--- A SUBCONTRACTOR OF MANAGEMENT SERVICES--- PURSUANT TO A DEFAULT JUDGMENT OBTAINED BY UNITED BUILDING MAINTENANCE, INC., AGAINST MAINTENANCE SERVICES.

THE SUIT FILED IN THE DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS, CIVIL ACTION NO. 4-533, NAMED BOTH THE UNITED STATES AND MANAGEMENT SERVICES, INC., AS DEFENDANTS, AND THE DEFAULT JUDGMENT FILED JUNE 23, 1966, READS IN PART:

"IT IS, THEREFORE, ORDERED THAT THE PLAINTIFF, UNITED BUILDING MAINTENANCE, INC., DO HAVE AND RECOVER FROM THE DEFENDANT, MANAGEMENT SERVICES, INC., THE SUM OF $2,543.17, WHICH SUM IS TO BE PAID OUT OF FUNDS PRESENTLY HELD BY THE FEDERAL AVIATION AGENCY AND THAT WHEN SAID SUM IS DELIVERED TO PLAINTIFF, UNITED BUILDING MAINTENANCE, INC., THE DEFENDANT MANAGEMENT SERVICES, NC., WILL FOREVER BE BARRED TO ASSERT ANY CLAIM OR TITLE TO SAID FUNDS.'

WE HAVE BEEN INFORMALLY ADVISED BY THE DEPARTMENT OF JUSTICE THAT, WITH THE CONCURRENCE OF BOTH THE PLAINTIFF SUBCONTRACTOR AND THE UNITED STATES ATTORNEY, A PETITION HAS BEEN FILED WITH THE COURT TO AMEND THE JUDGMENT BY DELETING ALL REFERENCE TO THE FEDERAL AVIATION AGENCY. HOWEVER, IT LONG HAS BEEN THE RULE OF THE ACCOUNTING OFFICERS THAT UPON COMPLETION OF THE CONTRACT WORK THE CONTRACTOR IS ENTITLED TO BE PAID THE CONTRACT PRICE EVEN THOUGH THERE MAY BE UNPAID CLAIMS OF SUBCONTRACTORS OUTSTANDING AGAINST IT.10 COMP. GEN. 433; 23 ID. 655, 37 ID. 115. IN VIEW OF THE PARTICULAR CIRCUMSTANCES, WE BELIEVE THAT THE CHECK COVERING THE FINAL CONTRACT PAYMENT SHOULD BE DRAWN IN FAVOR OF THE DEFENDANT CONTRACTOR AND FORWARDED TO THE CLERK OF THE COURT FOR DISPOSITION UNDER THE FINAL JUDGMENT. CF. 44 COMP. GEN. 86.