B-160583, JAN. 11, 1967

B-160583: Jan 11, 1967

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO UNITED STATES ATTORNEY: THIS IS IN REFERENCE TO YOUR LETTER OF DECEMBER 12. NO PROCEEDINGS FOR THE REVIEW OF THE JUDGMENT WERE TAKEN. IT IS THE CONTENTION OF THE ATTORNEY. THAT WHERE THE COURT ORDERS PAYMENT OF INTEREST FROM THE DATE JUDGMENT IS RENDERED. THE AUTHORITY FOR THE PAYMENT OF INTEREST IS SET FORTH IN SECTION 2411 (B). SUBSEQUENTLY THERE WAS ENACTED INTO LAW SECTION 1302 OF THE SUPPLEMENTAL APPROPRIATION ACT OF 1957. - QUOTING FROM THE CODE: "THERE ARE APPROPRIATED. IN ANY ONE CASE) WHICH ARE PAYABLE IN ACCORDANCE WITH THE TERMS OF SECTIONS 2414. IS PAYABLE FROM THE APPROPRIATION. THEN ONLY FROM THE DATE OF THE FILING OF THE TRANSCRIPT THEREOF IN THE GENERAL ACCOUNTING OFFICE TO THE DATE OF THE MANDATE OF AFFIRMANCE (EXCEPT THAT IN CASES REVIEWED BY THE SUPREME COURT INTEREST SHALL NOT BE ALLOWED BEYOND THE TERM OF THE COURT AT WHICH THE JUDGMENT WAS AFFIRMED) * * *.'.

B-160583, JAN. 11, 1967

TO UNITED STATES ATTORNEY:

THIS IS IN REFERENCE TO YOUR LETTER OF DECEMBER 12, 1966, TO THE CLAIMS DIVISION CONCERNING CLAIM NO. Z-2333903, VALENCIA V. UNITED STATES, D.C. GUAM CIVIL 81-65, AND ENCLOSING A COPY OF A LETTER SIGNED BY PAUL J. ABBATE FOR FINTON J. PHELAN, JR., THE PLAINTIFF'S ATTORNEY, PROTESTING THE NON-PAYMENT OF INTEREST ON THE JUDGMENT.

THE ORDER BY THE DISTRICT COURT OF GUAM ENTERED ON JULY 27, 1966,PROVIDED FOR "INTEREST ACCORDING TO LAW THEREON FROM THE 20TH DAY OF JULY, 1966.' NO PROCEEDINGS FOR THE REVIEW OF THE JUDGMENT WERE TAKEN.

IT IS THE CONTENTION OF THE ATTORNEY, AS STATED IN THE LETTER, THAT WHERE THE COURT ORDERS PAYMENT OF INTEREST FROM THE DATE JUDGMENT IS RENDERED, PAYMENT SHOULD BE MADE PURSUANT TO THE ORDER OF THE COURT.

THE AUTHORITY FOR THE PAYMENT OF INTEREST IS SET FORTH IN SECTION 2411 (B), TITLE 28, UNITED STATES CODE, AS FOLLOWS:

"EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (A) OF THIS SECTION, ON ALL FINAL JUDGMENTS RENDERED AGAINST THE UNITED STATES IN ACTIONS INSTITUTED UNDER SECTION 1346 OF THIS TITLE, INTEREST SHALL BE COMPUTED AT THE RATE OF 4 PERCENTUM PER ANNUM FROM THE DATE OF THE JUDGMENT UP TO, BUT NOT EXCEEDING, THIRTY DAYS AFTER THE DATE OF APPROVAL OF ANY APPROPRIATION ACT PROVIDING FOR PAYMENT OF THE JUDGMENT.'

SUBSEQUENTLY THERE WAS ENACTED INTO LAW SECTION 1302 OF THE SUPPLEMENTAL APPROPRIATION ACT OF 1957, PUBLIC LAW 814, APPROVED JULY 27, 1956, 70 STAT. 694. AS AMENDED BY THE ACT OF AUGUST 30, 1961, 75 STAT. 415 AND PUBLIC LAW 89-506, APPROVED JULY 18, 1966, 80 STAT. 306, 31 U.S.C. 724A, THIS SECTION READS AS FOLLOWS--- QUOTING FROM THE CODE:

"THERE ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE APPROPRIATED, AND OUT OF THE POSTAL REVENUES, RESPECTIVELY,SUCH SUMS AS MAY ON AND AFTER JULY 27, 1956, BE NECESSARY FOR THE PAYMENT, NOT OTHERWISE PROVIDED FOR, AS CERTIFIED BY THE COMPTROLLER GENERAL, OF FINAL JUDGMENTS, AWARDS AND COMPROMISE SETTLEMENTS (NOT IN EXCESS OF $100,000, OR ITS EQUIVALENT IN FOREIGN CURRENCIES AT THE TIME OF PAYMENT, IN ANY ONE CASE) WHICH ARE PAYABLE IN ACCORDANCE WITH THE TERMS OF SECTIONS 2414, 2517, 2672, OR 2677 OF TITLE 28, TOGETHER WITH SUCH INTEREST AND COSTS AS MAY BE SPECIFIED IN SUCH JUDGMENTS OR OTHERWISE AUTHORIZED BY LAW: PROVIDED, THAT, WHENEVER A JUDGMENT OF A DISTRICT COURT TO WHICH THE PROVISIONS OF SECTION 2411 (B) OF TITLE 28, APPLY, IS PAYABLE FROM THE APPROPRIATION, INTEREST SHALL BE PAID THEREON ONLY WHEN SUCH JUDGMENT BECOMES FINAL AFTER REVIEW ON APPEAL OR PETITION BY THE UNITED STATES, AND THEN ONLY FROM THE DATE OF THE FILING OF THE TRANSCRIPT THEREOF IN THE GENERAL ACCOUNTING OFFICE TO THE DATE OF THE MANDATE OF AFFIRMANCE (EXCEPT THAT IN CASES REVIEWED BY THE SUPREME COURT INTEREST SHALL NOT BE ALLOWED BEYOND THE TERM OF THE COURT AT WHICH THE JUDGMENT WAS AFFIRMED) * * *.'

GENERALLY SPEAKING, PRIOR TO THE ENACTMENT OF SECTION 1302 OF PUBLIC LAW 814 (31 U.S.C. 724A) INTO LAW THERE WERE NO FUNDS AVAILABLE FOR THE PAYMENT OF JUDGMENTS RENDERED AGAINST THE UNITED STATES AND IT WAS NECESSARY THAT THE AMOUNT OF THE JUDGMENT BE CERTIFIED TO THE CONGRESS FOR A SPECIFIED APPROPRIATION FOR PAYMENT. SECTION 1302 ESTABLISHED A PERMANENT APPROPRIATION FOR THE PAYMENT OF JUDGMENTS NOT IN EXCESS OF $100,000 AND INTEREST THEREON AS OTHERWISE AUTHORIZED BY LAW, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN. THUS, AS TO JUDGMENTS PROPERLY PAYABLE UNDER SECTION 1302, INTEREST FORMERLY AUTHORIZED UNDER 28 U.S.C. 2411 (B) IS LIMITED AND RESTRICTED BY THE LANGUAGE OF SECTION 1302. SEE 44 COMP. GEN. 421. SINCE IN THE INSTANT CASE NO PROCEEDINGS FOR THE REVIEW OF THE JUDGMENT WERE TAKEN, INTEREST MAY NOT BE PAID BY OUR OFFICE.