B-37448, JUL. 12, 1955

B-37448: Jul 12, 1955

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E. LAWRENCE WHEELER: REFERENCE IS MADE TO YOUR LETTER OF MAY 10. THAT YOU WERE A 25 PERCENT STOCKHOLDER. YOU SEEM TO BELIEVE THAT YOU HAVE A VALID CLAIM AGAINST THE GOVERNMENT. AS YOU HAVE HERETOFORE BEEN ADVISED. SINCE ALL AMOUNTS DUE UNDER THE CONTRACT APPARENTLY HAVE BEEN PAID TO THE CONTRACTORS OF RECORD ANY CLAIM YOU MAY HAVE IS AGAINST SUCH CONTRACTORS AND NOT THE GOVERNMENT.

B-37448, JUL. 12, 1955

TO MR. E. LAWRENCE WHEELER:

REFERENCE IS MADE TO YOUR LETTER OF MAY 10, 1955, RELATIVE TO OUR LETTER OF MARCH 23, 1955, CONCERNING CONTRACT NO. NOBS-690, DATED MAY 11, 1942, BETWEEN THE WHEELER YMS PURCHASING COMPANY AND THE DEPARTMENT OF THE NAVY.

YOU CONTEND THAT YOUR NAME HAS APPEARED ON ALL DOCUMENTS PRIOR TO THE EXECUTION OF THE ONTRACT; THAT YOU WERE A 25 PERCENT STOCKHOLDER, OFFICER AND DIRECTOR OF THE COMPANY, AND THAT SINCE YOU DID NOT EXECUTE A FORMAL RELEASE TO THE GOVERNMENT, YOU SEEM TO BELIEVE THAT YOU HAVE A VALID CLAIM AGAINST THE GOVERNMENT. THE RECORDS BEFORE OUR OFFICE DO NOT INDICATE THAT YOUR NAME APPEARED ON THE CONTRACT EITHER AS A PARTNER OF THE FIRM OR AS A PARTY TO THE CONTRACT. CONSEQUENTLY, AS YOU HAVE HERETOFORE BEEN ADVISED, THERE DOES NOT APPEAR TO BE ANY PRIVITY OF CONTRACT BETWEEN YOU AND THE GOVERNMENT, AND WITHOUT SUCH PRIVITY THERE EXISTS NO LEGAL BASIS ON WHICH THE GOVERNMENT MAY FAVORABLY CONSIDER A CLAIM BY YOU UNDER THE CONTRACT IN QUESTION.

IN ANY EVENT, THERE DOES NOT APPEAR TO BE ANY BALANCE DUE FROM THE GOVERNMENT UNDER THE CONTRACT. CONSEQUENTLY, SINCE ALL AMOUNTS DUE UNDER THE CONTRACT APPARENTLY HAVE BEEN PAID TO THE CONTRACTORS OF RECORD ANY CLAIM YOU MAY HAVE IS AGAINST SUCH CONTRACTORS AND NOT THE GOVERNMENT.