B-142060, MAY 25, 1966
Highlights
CATALDO: REFERENCE IS MADE TO YOUR LETTER DATED MAY 11. JUDGMENT WAS ENTERED IN YOUR FAVOR AGAINST OVE GUSTAVSSON CONTRACTING . THE COURT ALSO DETERMINED THAT YOU HAVE A CHARGING LIEN AMOUNTING TO $8. 758 AND STATE THAT THE ACTION WILL BE CONTINUED AS AGAINST THE SURETY AND THE UNITED STATES FOR THE PURPOSE OF DETERMINING YOUR RIGHTS IN THE BALANCE OF THE FUND. 516 WAS WITHHELD FROM PAYMENT UNDER THE NAVY CONTRACT BECAUSE OF CONFLICTING CLAIMS OF THE CONTRACTOR. THE SUIT WAS DISMISSED BY COURT ORDER ON JANUARY 24. WE ARE ADVISED BY THE DEPARTMENT OF JUSTICE THAT YOU FILED A PETITION BEFORE THE SUPREME COURT OF THE UNITED STATES FOR THE GRANTING OF A WRIT OF CERTIORARI. THERE ARE INDICATIONS TO THE EFFECT THAT THE GOVERNMENT MAY HAVE A CLAIM AGAINST THE CONTRACTOR ON ACCOUNT OF AN INTERNAL REVENUE TAX LIABILITY.
B-142060, MAY 25, 1966
TO MR. ANTHONY B. CATALDO:
REFERENCE IS MADE TO YOUR LETTER DATED MAY 11, 1966, ENCLOSING A COPY OF A JUDGMENT RENDERED BY THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN THE CASE OF YOUR ACTION AGAINST OVE GUSTAVSSON CONTRACTING CO., INC., THE HANOVER INSURANCE COMPANY AND THE UNITED STATES. INDICATED IN YOUR LETTER, JUDGMENT WAS ENTERED IN YOUR FAVOR AGAINST OVE GUSTAVSSON CONTRACTING ., INC., FOR THE SUM OF $29,635.50, AND THE COURT ALSO DETERMINED THAT YOU HAVE A CHARGING LIEN AMOUNTING TO $8,758 UPON THE SUM OF $17,516, REFERRED TO AS AN AMOUNT DUE THAT DEFENDANT FOR EXTRA WORK PERFORMED UNDER NAVY CONTRACT NO. NBY-21183. YOU REQUEST PAYMENT OF THE SUM OF $8,758 AND STATE THAT THE ACTION WILL BE CONTINUED AS AGAINST THE SURETY AND THE UNITED STATES FOR THE PURPOSE OF DETERMINING YOUR RIGHTS IN THE BALANCE OF THE FUND.
THE AMOUNT OF $17,516 WAS WITHHELD FROM PAYMENT UNDER THE NAVY CONTRACT BECAUSE OF CONFLICTING CLAIMS OF THE CONTRACTOR, THE SURETY ON THE CONTRACT PERFORMANCE AND PAYMENT BONDS AND THE CONTRACTOR'S ASSIGNEE BANK. SUBSEQUENT TO REFERRAL OF THE MATTER TO OUR OFFICE, YOU FILED A PETITION IN THE COURT OF CLAIMS SEEKING TO RECOVER THE SUM OF $17,516 OR A SUBSTANTIAL PORTION THEREOF. THE SUIT WAS DISMISSED BY COURT ORDER ON JANUARY 24, 1966, AND WE ARE ADVISED BY THE DEPARTMENT OF JUSTICE THAT YOU FILED A PETITION BEFORE THE SUPREME COURT OF THE UNITED STATES FOR THE GRANTING OF A WRIT OF CERTIORARI. FURTHERMORE, THERE ARE INDICATIONS TO THE EFFECT THAT THE GOVERNMENT MAY HAVE A CLAIM AGAINST THE CONTRACTOR ON ACCOUNT OF AN INTERNAL REVENUE TAX LIABILITY. THAT MATTER IS UNDER INVESTIGATION AND AN OFFSET AGAINST THE SUM OF $17,516 WILL BE REQUIRED IF THE CONTRACTOR IS, IN FACT, INDEBTED TO THE UNITED STATES FOR UNPAID TAXES AND ANY APPLICABLE PENALTIES AND INTEREST.
IN VIEW OF THE FOREGOING, AND SINCE IT DOES NOT APPEAR THAT A STATE COURT HAS JURISDICTION TO DETERMINE THE VALIDITY OF CLAIMS AGAINST THE UNITED STATES OR ITS RESPONSIBILITIES AS A STAKEHOLDER OF FUNDS WITHHELD FROM PAYMENT TO CONTRACTORS OR OTHER CLAIMANTS, YOUR REQUEST FOR PAYMENT OF THE AMOUNT OF $8,758 AT THIS TIME MUST BE, AND IS, HEREBY DENIED.