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B-129994-O.M. January 29, 1957

B-129994-O.M. Jan 29, 1957
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The Comptroller General Herewith are the files pertaining to two Court of Claims judgments rendered in favor of Calvin S. Both named judgment creditors were employees of the Treasury Department. Both were money judgments resulting from services rendered as employees of the Bureau of Customs. In each case claim is being made by the widow of the deceased employee. The questions have arisen in each case. (a) will we require the judgments to be amended to substitute a party entitled to receive the amount due under the judgment and (b). Which controls the distribution of "unpaid compensation" due an employee at date of death when it occurs while he was in employ of the United States. Here the employees were not alive when the amounts became due under the judgment.

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B-129994-O.M. January 29, 1957

The Comptroller General

Herewith are the files pertaining to two Court of Claims judgments rendered in favor of Calvin S. Stram and Arthur F. Rogers, in the amounts of $617.24 and $409.43, respectively. Both named judgment creditors were employees of the Treasury Department, Bureau of Customs, and both died prior to the rendition and entry of judgment. Both were money judgments resulting from services rendered as employees of the Bureau of Customs. In each case claim is being made by the widow of the deceased employee.

The questions have arisen in each case, namely, (a) will we require the judgments to be amended to substitute a party entitled to receive the amount due under the judgment and (b), if not, should payment be made to the widow in a representative rather than her sole capacity? The latter question has arisen particularly with regard to the case of Calvin S. Stram, inasmuch as he died subsequent to the effective date of Public law 636, 64 Stat. 395, which controls the distribution of "unpaid compensation" due an employee at date of death when it occurs while he was in employ of the United States. Here the employees were not alive when the amounts became due under the judgment.

Considerable doubt arises as to whether the amount due under a money judgment is "unpaid compensation", even though the judgment results from compensation determined by the court to be due. A judgment for a sum of money only, assumes a new identity, differing from the subject matter on which it is founded. It is transformed into a cause of action on contract or in debt. Judgments such as those under consideration are payable only pursuant to settlement by this Office and from a special Treasury Department appropriation; "unpaid compensation" is paid by the administrative office involved from its own appropriation.

These judgments constitute an asset of the estate; it appears, therefore, they should be paid to the legal or other representative of the estate. This would seem to be required in any event, in the case of Arthur F. Roger, inasmuch as he died prior to the enactment of Public Law 636, supra; however, it is not believed the date of death would be material in determining this question.

When such judgments are rendered in favor of employees who are living and still in the employ of the Government, it is the established procedure of this Division to pay such amounts as due under the judgment and not as unpaid compensation. There is perceived no reason why the payment should assume a different character when death of the employee intervenes.

Instructions are requested.

A. B. THOMAS Director, Claims Division

Director, Claims Divison

Returned. Judgments are debts or record and an action on a judgment is an action on contract irrespective of the nature of the original transaction on which the judgment was founded. See 49 C.J.S., Judgments Sec. 6. The nature of the original cause of action thus is inconsequential; and, Public Law 636, 64 Stat. 395, is not for application in either of the immediate situations.

While a judgment rendered after death of the plaintiff is voidable, (49 C.J.S., Judgments Sec. 29.) the Department of Justice in each of the instant cases has indicated no further proceedings will be taken and there being no doubt that the cause of action for compensation would survive and would be an asset of the decedents' estates, payment of the amount of each of the judgments may be made as an asset of the decedent's estate to the person or persons found to be entitled to receive such assets.

JOSEPH CAMPBELL Comptroller General of the United States

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