B-82605, JUN. 15, 1955

B-82605: Jun 15, 1955

Additional Materials:

Contact:

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

 

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

TO EASTPORT STEAMSHIP CORPORATION: REFERENCE IS MADE TO YOUR LETTERS OF MAY 6 AND MAY 26. IN WHICH YOU REQUEST PAYMENT OF INTEREST ON THAT PORTION OF THE JUDGMENT RECOVERED BY YOUR COMPANY IN CASE NO. 48965 IN THE COURT OF CLAIMS WHICH WAS ORIGINALLY WITHHELD PURSUANT TO THE PROVISIONS OF 31 U.S.C. 227 BUT SUBSEQUENTLY PAID IN ACCORDANCE WITH SETTLEMENT NO. 2260542 DATED APRIL 28. THE LANGUAGE OF 31 U.S.C. 227 IMPELS THE CONCLUSION THAT INTEREST IS REQUIRED TO BE PAID ON A JUDGMENT AGAINST THE UNITED STATES. ONLY WHEN THE SUIT DIRECTED TO BE INSTITUTED BY THE COMPTROLLER GENERAL IN BEHALF OF THE UNITED STATES AGAINST THE JUDGMENT CREDITOR ON HIS INDEBTEDNESS TO THE GOVERNMENT RESULTS EITHER IN A JUDGMENT AGAINST THE UNITED STATES OR WHEN THE RECOVERY BY THE UNITED STATES IN SUCH SUIT IS FOR AN AMOUNT LESS THAN THAT WITHHELD.

B-82605, JUN. 15, 1955

TO EASTPORT STEAMSHIP CORPORATION:

REFERENCE IS MADE TO YOUR LETTERS OF MAY 6 AND MAY 26, 1955, IN WHICH YOU REQUEST PAYMENT OF INTEREST ON THAT PORTION OF THE JUDGMENT RECOVERED BY YOUR COMPANY IN CASE NO. 48965 IN THE COURT OF CLAIMS WHICH WAS ORIGINALLY WITHHELD PURSUANT TO THE PROVISIONS OF 31 U.S.C. 227 BUT SUBSEQUENTLY PAID IN ACCORDANCE WITH SETTLEMENT NO. 2260542 DATED APRIL 28, 1955.

THE LANGUAGE OF 31 U.S.C. 227 IMPELS THE CONCLUSION THAT INTEREST IS REQUIRED TO BE PAID ON A JUDGMENT AGAINST THE UNITED STATES, OR PORTION THEREOF, WHICH HAS BEEN WITHHELD, ONLY WHEN THE SUIT DIRECTED TO BE INSTITUTED BY THE COMPTROLLER GENERAL IN BEHALF OF THE UNITED STATES AGAINST THE JUDGMENT CREDITOR ON HIS INDEBTEDNESS TO THE GOVERNMENT RESULTS EITHER IN A JUDGMENT AGAINST THE UNITED STATES OR WHEN THE RECOVERY BY THE UNITED STATES IN SUCH SUIT IS FOR AN AMOUNT LESS THAN THAT WITHHELD.

IT FOLLOWS THAT YOUR RIGHT TO INTEREST DEPENDS ENTIRELY UPON THE OUTCOME OF THE SUIT HERETOFORE INSTITUTED UPON THE ALLEGED INDEBTEDNESS OF YOUR COMPANY TO THE MARITIME ADMINISTRATION IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ENTITLED UNITED STATES V. EASTPORT STEAMSHIP CORPORATION, ADMIRALTY NO. 183-325.

ACCORDINGLY, IT IS OUR VIEW THAT THERE IS NO STATUTORY OR OTHER AUTHORITY FOR THE PAYMENT OF INTEREST TO YOUR COMPANY UPON THAT PORTION OF YOUR JUDGMENT HERETOFORE WITHHELD PRIOR TO THE FINAL DETERMINATION OF THAT SUIT.