B-167403, AUG. 13, 1969

B-167403: Aug 13, 1969

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CIVIL PAY - RELOCATION EXPENSES - REAL ESTATE - SETTLEMENT DATE EMPLOYEE WHO WAS GRANTED 6 MONTHS' EXTENSION FOR COMPLETION OF SALE OF HOME AT OLD STATION UNDER SECTION 4.1D. A-56 WHEN TEMPORARY RESTRAINING ORDER WAS OBTAINED AGAINST INTERNAL REVENUE SERVICE FOR ATTACHING BUYER'S DEPOSIT MAY HAVE LITIGATION REGARDED AS CONTRIBUTING SUBSTANTIALLY TO SETTLEMENT DELAY AND FACT THAT HOME WAS ULTIMATELY RELISTED AND SOLD TO PARTIES OTHER THAN ORIGINAL PARTIES INVOLVED IN LITIGATION IS NOT MATERIAL. WHICH WAS CONTINUED ON JANUARY 29. IT WAS EVIDENT THAT THE SALE COULD NOT BE COMPLETED FOR SOMETIME. WAS GRANTED UNDER THE AUTHORITY OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. SINCLAIR HAD HIS PROPERTY RELISTED AND IT WAS SOLD TO DIFFERENT PARTIES WITH SETTLEMENT ON JUNE 12.

B-167403, AUG. 13, 1969

CIVIL PAY - RELOCATION EXPENSES - REAL ESTATE - SETTLEMENT DATE EMPLOYEE WHO WAS GRANTED 6 MONTHS' EXTENSION FOR COMPLETION OF SALE OF HOME AT OLD STATION UNDER SECTION 4.1D, BUREAU OF THE BUDGET CIRCULAR NO. A-56 WHEN TEMPORARY RESTRAINING ORDER WAS OBTAINED AGAINST INTERNAL REVENUE SERVICE FOR ATTACHING BUYER'S DEPOSIT MAY HAVE LITIGATION REGARDED AS CONTRIBUTING SUBSTANTIALLY TO SETTLEMENT DELAY AND FACT THAT HOME WAS ULTIMATELY RELISTED AND SOLD TO PARTIES OTHER THAN ORIGINAL PARTIES INVOLVED IN LITIGATION IS NOT MATERIAL. HENCE EMPLOYEE MAY BE REIMBURSED FOR REAL ESTATE EXPENSES.

TO MR. RALPH F. SHAWLEE:

YOUR LETTER OF JUNE 24, 1969, REFERENCE AF, FORWARDED HERE BY LETTER OF JUNE 30, 1969, REFERENCE BFG, BY THE DIRECTOR OF FINANCIAL MANAGEMENT REQUESTS A DECISION ON THE APPROPRIATENESS OF THE ADMINISTRATIVE EXTENSION OF TIME TO MR. KENNETH F. SINCLAIR, AN EMPLOYEE AT AMES RESEARCH CENTER, NATIONAL ACRONAUTICS AND SPACE ADMINISTRATION, WITHIN WHICH TO COMPLETE THE SALE OF HIS RESIDENCE AS RELATED TO THE PROVISIONS OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 (OCTOBER 12, 1966, REVISION).

YOU STATE THAT MR. SINCLAIR REPORTED TO HIS NEW DUTY STATION, MOFFETT FIELD, CALIFORNIA, ON MARCH 6, 1967, UPON TRANSFER FROM SAN FRANCISCO. DECEMBER 10, 1967, HE CONTRACTED TO SELL HIS FORMER RESIDENCE TO MR. AND MRS. ARTHUR A. LAPEDIS. PRIOR TO SETTLEMENT THE INTERNAL REVENUE SERVICE ATTACHED THE LAPEDIS' DEPOSIT. THE ATTORNEYS FOR THE BUYER OBTAINED A TEMPORARY RESTRAINING ORDER ON JANUARY 24, 1968, WHICH WAS CONTINUED ON JANUARY 29, 1968; HOWEVER, IT WAS EVIDENT THAT THE SALE COULD NOT BE COMPLETED FOR SOMETIME. MR. SINCLAIR ASKED FOR AN EXTENSION OF SIX MONTHS WHICH, ON FEBRUARY 19, 1968, WAS GRANTED UNDER THE AUTHORITY OF SECTION 4.1D OF BUREAU OF THE BUDGET CIRCULAR NO. A-56. DUE TO CONTINUING DELAY, HOWEVER, IN COMPLETING THE SALE WITH MR. AND MRS. LAPEDIS, MR. SINCLAIR HAD HIS PROPERTY RELISTED AND IT WAS SOLD TO DIFFERENT PARTIES WITH SETTLEMENT ON JUNE 12, 1968.

YOU NOW QUESTION YOUR ORIGINAL PAYMENT OF THE REAL ESTATE EXPENSES TO MR. SINCLAIR IN VIEW OF OUR DECISIONS DISALLOWING PAYMENT IN B 164902 OF AUGUST 9, 1968 (PROSPECTIVE PURCHASERS BECAME BANKRUPT PRIOR TO SETTLEMENT BUT NO LITIGATION INVOLVED) AND B-163955, OF MAY 20, 1968 (DELAY IN OBTAINING VETERANS ADMINISTRATION LOAN APPROVAL).

ON THE ABOVE RECORD, WE FEEL THAT THE 6-MONTH EXTENSION OF TIME AUTHORIZED IN THE LETTER OF FEBRUARY 19, 1968, TO MR. SINCLAIR WAS APPROPRIATE AS THE LITIGATION DETAILED ABOVE CONTRIBUTED SUBSTANTIALLY TO THE DELAY IN SETTLING THE SALE OF MR. SINCLAIR'S RESIDENCE. THE FACT THAT HE RELISTED THE PROPERTY WHICH WAS SOLD TO PARTIES OTHER THAN THE ORIGINAL PROSPECTIVE PURCHASERS DOES NOT APPEAR MATERIAL.

THEREFORE, SINCE SETTLEMENT WITH THE OTHER PARTIES WAS EFFECTED ON JUNE 12, 1968, WITHIN THE PERIOD OF THE AUTHORIZED EXTENSION THE PREVIOUS PAYMENT OF REAL ESTATE EXPENSES, IF OTHERWISE PROPER, NEED NOT BE FURTHER QUESTIONED.