B-101576-0.M. February 3, 1955
Highlights
The Acting Comptroller General Herewith is the file relative to judgements rendered in the United States District Court for the Northern District of Georgia. Judgment was rendered on October 26. Of which $901.89 was to be paid to the Southeastern Air Service. An inquiry was instituted by this office to ascertain whether action had been taken by the Treasury Department to include this judgment in a request to Congress for an appropriation. It was then discovered that payment of the judgment had been administratively effected by the Veterans Administration on January 22 and January 28. Are not available to pay judgement of courts. Exceptions to the rule are recognized only where the appropriations or special funds for activities out of which the cause of motion cause expressly include provision for the payment of judgments against United States.
B-101576-0.M. February 3, 1955
The Acting Comptroller General
Herewith is the file relative to judgements rendered in the United States District Court for the Northern District of Georgia, Atlanta Division, in the case of Southeastern Air Service, Inc. v. United States, Civil Aciton No. 3888, 3987, 3990 and 3991, on October 26, 1953.
Judgement under Civil Action No. 3988, in the amount of $2,093.97, plus interest in the amount of $180.60, totaling $2,274.57, has been paid to the Southeastern Air Service, Inc., by check No. 24,152,378, dated April 13, 1954, drawn by Paul D. Benning, Chief Disbursing Officer upon settlement of this Office.
By stipultation, judgment was rendered on October 26, 1953, in Civil Action Nos. 3986, 3987, 3989, 3990 and 3991, for $5,850.00, of which $901.89 was to be paid to the Southeastern Air Service, Inc., and its atterway, and the remaining $4,945.31 to the Director of Internal Revenue for a tax indebtedness. In March 1954, an inquiry was instituted by this office to ascertain whether action had been taken by the Treasury Department to include this judgment in a request to Congress for an appropriation. It was then discovered that payment of the judgment had been administratively effected by the Veterans Administration on January 22 and January 28, 1954, by C. A. Wood, Disbursing Officer, symbol 406, on D. O. Vouchers Nos. 54069 and 56565.
Under the provisions of 28 U.S.C. 2414, payments of final judgments rendered by District Courts against the United States shall be made on settlements by the General Accounting Office. 15 Comp. Gen. 933, B-52600, B-97131, May 7, 1952.
It has been held that the appropriations or funds provided for governmental operations of activities, cut of which the cause of action arose, are not available to pay judgement of courts, but that the amount thereof must be estimated and specifically appropriated.
Exceptions to the rule are recognized only where the appropriations or special funds for activities out of which the cause of motion cause expressly include provision for the payment of judgments against United States.
The appropriations out of which this judgement was paid does not make provision for payment of judgments, nor is the Veterans Administration authorized by law to pay this type of judgement. In view thereof, the question arisen as to the propriety of issuing instructions to the Veterans Administration to preclude future payments, which motion by the administration could result in duplicate payments.
If it should be determinied that the payments involved was an inproper charge against the appropriation, the dishonoring officer's vouchers are explosed for appropriate action.
In view of the foregoing, the matter is submitted for your consideration and instructions. A similar question is now being considered under B- 107955.
A.B. THOMAS Director, Claims Divisions
Enclosures
c/m B-101576-O.M.
Director, Claims Division
Returned, inviting attention to copy of Office letter of today to the Administrator of Veterans Affairs.
FRANK H. WEITZEL ASSISTANT Comptroller General of the United States
Attachment