Claim for Post-Judgment Interest

A Department of State employee appealed a settlement certificate issued by the Claims Group in August 1980 on her claim for post-judgment interest on a backpay award by the U. S. District Court. The Government appealed the award of pre-judgment and post-judgment interest; and, contrary to GAO policy of certifying only final judgments, the Claims Group, through administrative oversight, issued a settlement certificate in November 1979. The claimant agreed in writing to the computations made, and a check was issued. However, the Court of Appeals reversed the pre-judgment award interest but affirmed the award of post-judgment interest. When computations made by the Department of State were reviewed in advance of issuing a settlement certificate, errors were discovered. Under applicable regulations, agencies are instructed to compute backpay for the period as if the unjustified personnel action had not occurred, but in no case will the employee be granted more pay, allowances, and differential than he would have been entitled to. GAO believed that this was not an instance in which the Court itself specified a fixed dollar amount of interest. The Court of Appeals affirmed the lower court's award of post-judgment interest, although it overturned the award of pre-judgment interest, from the time of the judgment until all amounts due the employee were paid. On this basis, it was concluded that the August 1980 settlement certificate issued in this matter was correct, and the action of the Claims Group was sustained.