B-160690 May 14, 1970

B-160690: May 14, 1970

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Attorney General: Elclosed for your consideration and appropriate action is a copy of a letter dated March 30. This matter was initially brought to the attention of our Claims Division by letter dated November 23. The record was further supplemented by letter. A meeting was held in our Office. It was agreed that ABC would submit a formal response to Susquebanna's memorandum of November 22. ABC's response was made in a letter. A copy of this response was furnished to Susquebanna for its review and comment. Transmitting Susquebanna's offer is compromise for its consideration. It is noted that by letter dated April 21. Enclosed for your consideration is the file transmitted to us by ABC.

B-160690 May 14, 1970

The Honorable The Attorney General

Dear Mr. Attorney General:

Elclosed for your consideration and appropriate action is a copy of a letter dated March 30, 1970, from The Susquebanna Corporation, offering to compromise for $19,300 an Atomic Energy Commission (ABC) claim in the amount of $49,133.74 against Susquebanna's Atlantic Research Corporation division for the loss of a rocket.

In brief, this matter was initially brought to the attention of our Claims Division by letter dated November 23, 1966, from the Manager, San Francisco Operations Office, ABC, which sets forth generally the facts and circumstances involved. The record was further supplemented by letter, with enclosures, dated July 19, 1968, from the General Counsel, ABC.

By letter, with enclosures, dated November 22, 1968, Susquebanna submitted a memorandum denying liability for the loss. On August 22, 1969, a meeting was held in our Office, with representatives of Susquebanna and ABC in attendance, to discuss the merits of the claim. As a result of the meeting, it was agreed that ABC would submit a formal response to Susquebanna's memorandum of November 22. ABC's response was made in a letter, with enclosure, dated October 24, 1969, by the Assistant General Counsel for Operations. A copy of this response was furnished to Susquebanna for its review and comment.

On February 27, 1970, a representative of Susquebanna informally advised a representative of our Office that after a review of the entire matter, Susquebanna desired to compromise the claim. We advised that while we would not object to an attempt to reach an agreement with ABC, our Office would refer any offer by Susquebanna to settle the claim to your Department for consideration.

As we indicated to ABC in a letter dated April 10, 1970, transmitting Susquebanna's offer is compromise for its consideration, we believe the offer to be fair and reasonable in light of the factual uncertainties and legal principles involved in ABC's claim. It is noted that by letter dated April 21, 1970, the General Counsel, ABC, concurred in our view. We therefore recommend that the offer be accepted.

Enclosed for your consideration is the file transmitted to us by ABC, together with copies of all correspondence referenced in this letter. It is requested that ABC's file be returned upon completion of your review.

If you desire any additonal information from ABC, please contact Mr. O.S. Elstand, Jr., Assistant General Counsel, code 319, extension 4383. The attorney in our office who may be contacted for any additional information is Mr. Martin J. Harty, code 129, extension 5940.

It is requested that we be advised of your conclusion as to the action to be taken in this matter.

Sincerely yours,

General Counsel

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