B-134011, DEC. 27, 1957

B-134011, DEC. 27, 1957

TO MR. JOHN K. LANGAN:

REFERENCE IS MADE TO A LETTER DATED AUGUST 6, 1957, FROM YOUR ATTORNEY, MR. WILL M. DERIG, SUBMITTING ON YOUR BEHALF AN OFFER TO PAY THE SUM OF $33.88 IN FULL SETTLEMENT OF YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $338.83, REPRESENTING EXCESS COSTS INCURRED BY THE UNITED STATES IN CONNECTION WITH THE TRANSPORTATION OF YOUR HOUSEHOLD GOODS FROM NAPLES, ITALY, TO PARAMOUNT, CALIFORNIA.

SINCE OUR OFFICE IS WITHOUT AUTHORITY TO CONSIDER OFFERS IN COMPROMISE, WE SUBMITTED YOUR OFFER TO THE ATTORNEY GENERAL UNDER DATE OF OCTOBER 29, 1957, FOR HIS CONSIDERATION. WE HAVE NOW RECEIVED FROM THE DEPARTMENT OF JUSTICE A LETTER DATED NOVEMBER 20, 1957, ADVISING THAT YOUR OFFER OF SETTLEMENT HAS BEEN REJECTED. THE CHECK TRANSMITTED WITH THE LETTER OF AUGUST 6, 1957, IS RETURNED HEREWITH.

IN YOUR LETTER OF OCTOBER 20, 1956, YOU STATED THAT YOU WERE ADVISED BY THE SUPPLY OFFICER THAT YOU COULD HAVE YOUR HOUSEHOLD GOODS SHIPPED TO ANY POINT IN THE CONTINENTAL UNITED STATES AT GOVERNMENT EXPENSE AND THAT RELYING UPON SUCH ADVICE YOU ACCEPTED THE SERVICES IN GOOD FAITH. THE DEPARTMENT OF THE NAVY AND OUR CLAIMS DIVISION HAVE HERETOFORE INVITED YOUR ATTENTION TO PARAGRAPH 8009-5 OF THE JOINT TRAVEL REGULATIONS, IN EFFECT AT THE TIME OF THE SHIPMENT IN THIS CASE, WHICH PROVIDES THAT UPON RELEASE OF A MEMBER FROM ACTIVE DUTY, SHIPMENT OF HOUSEHOLD GOODS WITHIN THE MEMBER'S AUTHORIZED ALLOWANCE MAY BE MADE AT GOVERNMENT EXPENSE LIMITED IN COST FROM THE LAST OR ANY PREVIOUS PERMANENT DUTY STATION OR PLACE OF STORAGE IN CONNECTION THEREWITH TO THE HOME OF RECORD. IT WAS ON THE BASIS OF SUCH REGULATION THAT THE EXCESS COSTS IN YOUR CASE WERE DETERMINED.

INSOFAR AS THE ADVICE GIVEN YOU BY THE SUPPLY OFFICER AND THE GOOD FAITH ON YOUR PART IN ACCEPTING THE SERVICES ARE CONCERNED, YOUR ATTENTION IS INVITED TO THE CASE OF WISCONSIN CENTRAL RAILROAD V. UNITED STATES, 164 U.S. 190, IN WHICH THE COURT HELD THAT PERSONS WHO RECEIVE ERRONEOUS PAYMENTS FROM THE UNITED STATES THROUGH ADMINISTRATIVE ERROR OF ITS OFFICERS ARE BOUND IN EQUITY AND GOOD CONSCIENCE TO MAKE RESTITUTION. EVEN FINANCIAL HARDSHIP WHICH MIGHT RESULT FROM COLLECTION FROM THE RECIPIENT OR THE FACT THAT THE PAYMENT MAY HAVE BEEN RECEIVED IN GOOD FAITH ,CANNOT STAND AGAINST THE INJUSTICE OF KEEPING WHAT NEVER RIGHTFULLY BELONGED TO HIM AT ALL.' UNITED STATES V. BENTLEY, 107 F.2D 383, 384.

IN HIS LETTER OF JANUARY 2, 1957, AND AGAIN IN HIS LETTER OF AUGUST 6, 1957, MR. DERIG INDICATES THAT YOU SHOULD HAVE THE BENEFIT OF THE ALL WATER RATE VIA THE PANAMA CANAL TO THE VICINITY OF SAN DIEGO, CALIFORNIA. THERE IS NO AUTHORITY OF LAW, HOWEVER, FOR THE APPLICATION OF A COMPARATIVE RATE IN DETERMINING THE EXCESS COSTS HERE INVOLVED.

UPON THE BASIS OF THE PRESENT RECORD YOU APPEAR TO BE INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $338.83, WHICH SHOULD BE REMITTED TO OUR OFFICE. IN ORDER NOT TO CAUSE UNDUE FINANCIAL HARDSHIP WE ARE WILLING TO ACCEPT MONTHLY PAYMENTS ON ACCOUNT IF THE TOTAL AMOUNT IS LIQUIDATED WITHIN ONE YEAR. IN THE EVENT WE ARE NOT ADVISED WITHIN THIRTY DAYS FROM THE DATE OF THIS LETTER AS TO YOUR INTENTIONS RESPECTING PAYMENT, IT WILL BE NECESSARY TO REFER THE MATTER OF YOUR INDEBTEDNESS TO THE DEPARTMENT OF JUSTICE FOR APPROPRIATE ACTION, WITH THE RESULTANT ADDITIONAL COST SHOULD IT BE NECESSARY TO INSTITUTE SUIT.