B-165072, MAY 13, 1969
Highlights
REQUESTING INFORMATION WHETHER YOU ARE ENTITLED TO INTEREST ON THE AMOUNT WHICH HAS BEEN PAID TO YOU PURSUANT TO THE PROVISIONS OF PUBLIC LAW 89-301. IT IS WELL SETTLED THAT THE PAYMENT OF INTEREST BY THE GOVERNMENT ON ITS UNPAID ACCOUNTS OR CLAIMS MAY NOT BE MADE EXCEPT WHEN INTEREST IS STIPULATED FOR IN LEGAL AND PROPER CONTRACTS. OR WHEN ALLOWANCE OF INTEREST IS SPECIFICALLY DIRECTED BY STATUTE. THE UNITED STATES SUPREME COURT HELD THAT: "* * * THE UNITED STATES ARE NOT LIABLE TO PAY INTEREST ON CLAIMS AGAINST THEM. THAT INTEREST IS NOT ALLOWED ON CLAIMS AGAINST IT. THE ONLY RECOGNIZED EXCEPTIONS ARE. WHERE THE GOVERNMENT STIPULATES TO PAY INTEREST AND WHERE INTEREST IS GIVEN EXPRESSLY BY AN ACT OF CONGRESS.
B-165072, MAY 13, 1969
TO MR. HERBERT K. HALL:
THIS REFERS TO YOUR LETTER OF APRIL 5, 1969, WITH ENCLOSURE, REQUESTING INFORMATION WHETHER YOU ARE ENTITLED TO INTEREST ON THE AMOUNT WHICH HAS BEEN PAID TO YOU PURSUANT TO THE PROVISIONS OF PUBLIC LAW 89-301, APPROVED OCTOBER 29, 1965, 79 STAT. 1119, REPRESENTING SEVERANCE PAY INCIDENT TO YOUR SEPARATION FROM THE DEPARTMENT OF THE NAVY.
YOU SAY THAT THE GROSS AMOUNT YOU RECEIVED APPEARS TO BE ACCURATE UNDER THE FORMULA FOR COMPUTING SEVERANCE PAY UNDER THE PROVISIONS OF PUBLIC LAW 89-301. CONCERNING INTEREST ON BACK PAY DUE, IT IS WELL SETTLED THAT THE PAYMENT OF INTEREST BY THE GOVERNMENT ON ITS UNPAID ACCOUNTS OR CLAIMS MAY NOT BE MADE EXCEPT WHEN INTEREST IS STIPULATED FOR IN LEGAL AND PROPER CONTRACTS, OR WHEN ALLOWANCE OF INTEREST IS SPECIFICALLY DIRECTED BY STATUTE. ANGARICA V BAYARD, 127 U.S. 251; UNITED STATES V NORTH AMERICAN TRANSPORTATION AND TRADING CO., 253 U.S. 330; SEABOARD AIR LINE RY. CO. V UNITED STATES, 261 U.S. 299; SMYTH V UNITED STATES, 302 U.S. 329; UNITED STATES V HOTEL O., 329 U.S. 585. AT PAGE 260 OF THE ANGARICA CASE, THE UNITED STATES SUPREME COURT HELD THAT:
"* * * THE UNITED STATES ARE NOT LIABLE TO PAY INTEREST ON CLAIMS AGAINST THEM, IN THE ABSENCE OF EXPRESS STATUTORY PROVISION TO THAT EFFECT. HAS BEEN ESTABLISHED, AS A GENERAL RULE, IN THE PRACTICE OF THE GOVERNMENT, THAT INTEREST IS NOT ALLOWED ON CLAIMS AGAINST IT, WHETHER SUCH CLAIMS ORIGINATED IN CONTRACT OR IN TORT, AND WHETHER THEY ARISE IN THE ORDINARY BUSINESS OF ADMINISTRATION OR UNDER PRIVATE ACTS OF RELIEF, PASSED BY CONGRESS ON SPECIAL APPLICATION. THE ONLY RECOGNIZED EXCEPTIONS ARE, WHERE THE GOVERNMENT STIPULATES TO PAY INTEREST AND WHERE INTEREST IS GIVEN EXPRESSLY BY AN ACT OF CONGRESS, EITHER BY THE NAME OF INTEREST OR BY THAT OF DAMAGES.'
SINCE PAYMENT OF THE SEVERANCE PAY WAS ACCOMPLISHED UNDER AUTHORITY CONTAINED IN THE ACT OF OCTOBER 29, 1965, PUBLIC LAW 89-301, AND THAT ACT INCLUDED NO PROVISION FOR PAYMENT OF INTEREST, THERE IS NO AUTHORITY OF LAW UNDER WHICH INTEREST MAY BE PAID TO YOU.