B-162557, OCT. 9, 1967

B-162557: Oct 9, 1967

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THE PERMANENT INDEFINITE APPROPRIATION FOR PAYMENT OF JUDGMENTS 31 U.S.C. 724A LIMITS PAYMENT OF INTEREST FROM DATE JUDGMENT BECOMES FINAL AFTER REVIEW ON APPEAL AND WHEN NO PROCEEDINGS FOR REVIEW ARE INSTITUTED NO INTEREST MAY BE PAID. COWEN: THIS IS IN REFERENCE TO YOUR LETTER OF SEPTEMBER 11. 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 THIS 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-162557, OCT. 9, 1967

JUDGMENTS - INTEREST DECISION TO U.S. ATTORNEY RE LETTER PROTESTING NONPAYMENT OF INTEREST ON JUDGMENT IN CASE OF IVAN H. CAREY V. U.S. CIVIL NO. 660. ALTHOUGH A JUDGMENT AGAINST THE U.S. PROVIDED FOR INTEREST AT 6 PERCENT FROM DATE OF JUDGMENT UNTIL PAID, THE PERMANENT INDEFINITE APPROPRIATION FOR PAYMENT OF JUDGMENTS 31 U.S.C. 724A LIMITS PAYMENT OF INTEREST FROM DATE JUDGMENT BECOMES FINAL AFTER REVIEW ON APPEAL AND WHEN NO PROCEEDINGS FOR REVIEW ARE INSTITUTED NO INTEREST MAY BE PAID.

TO MR. ROBERT H. COWEN:

THIS IS IN REFERENCE TO YOUR LETTER OF SEPTEMBER 11, 1967, TO THE CLAIMS DIVISION CONCERNING CLAIM NO. Z-2348105, IVAN H. CAREY V. UNITED STATES, CIVIL NO. 660, NEW BERN DIVISION, FORWARDING A LETTER WITH ENCLOSURES FROM HARVEY HAMILTON, JR., THE PLAINTIFF'S ATTORNEY, PROTESTING THE NONPAYMENT OF INTEREST ON THE JUDGMENT.

THE ORDER OF THE COURT PROVIDED FOR INTEREST AT THE RATE OF 6 PERCENT FROM THE DATE OF JUDGMENT UNTIL PAID. IT APPEARS TO BE THE CONTENTION OF THE ATTORNEY THAT SINCE THE JUDGMENT BECAME FINAL, INTEREST SHOULD BE PAID AS PROVIDED THEREIN. HE FURTHER STATES THAT HE "CANNOT FIND ANY AUTHORITY FOR THE POSITION OF THE DISBURSING DEPARTMENT IN WASHINGTON.'

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 OF 4 PER CENTUM 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 PUB.L. 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 THIS 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.