B-116541, OCT. 11, 1955

B-116541, OCT. 11, 1955

TO COLLINS AUTO. COMPANY (LANCS.) LTD.:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 10, 1955, IN EFFECT REQUESTING FURTHER CONSIDERATION OF OUR SETTLEMENT DATED APRIL 28, 1955, WHICH DISALLOWED A PORTION OF YOUR CLAIM UNDER CONTRACT NO. AF 61 (703/-S-30, DATED JUNE 27, 1952, FOR THE PURCHASE OF CERTAIN SALVAGED MOTOR VEHICLES FROM THE 59TH AIR DEPOT WING, BURTONWOOD, ENGLAND, FOR THE AMOUNT OF 1,283.0.0 POUNDS STERLING WHICH WAS PAID TO THE SALES OFFICER.

THE SETTLEMENT WAS SUSTAINED BY OUR DECISION OF JULY 22, 1955; HOWEVER, YOU AGAIN EXPRESS YOUR BELIEF THAT THE CONTRACTING OFFICER HAD AUTHORITY TO CANCEL THE SUBJECT CONTRACT AND THAT THE FULL AMOUNT OF THE PURCHASE PRICE SHOULD BE REFUNDED TO YOU.

IT IS AN ESTABLISHED RULE THAT AGENTS AND OFFICERS OF THE UNITED STATES HAVE NO AUTHORITY TO SURRENDER A RIGHT VESTED IN THE GOVERNMENT, OR TO WAIVE CONTRACTUAL RIGHTS WHICH HAVE ACCRUED TO THE GOVERNMENT, OR TO MODIFY EXISTING CONTRACTS WITHOUT A COMPENSATING BENEFIT TO THE GOVERNMENT. SEE AMERICAN SALES CORPORATION V. UNITED STATES, 27 F.2D 389, AFFIRMED 32 F.2D 141, CERTIORARI DENIED 280 U.S. 574. AS WAS STATED BY THE UNITED STATES COURT OF CLAIMS IN PACIFIC HARDWARE AND STEEL COMPANY V. UNITED STATES, 49 C.CLS. 327, 335:

"IT IS UNQUESTIONABLY TRUE THAT AN OFFICIAL OF THE GOVERNMENT IS NOT AUTHORIZED TO GIVE AWAY OR REMIT A CLAIM DUE THE GOVERNMENT. THIS RULE IS GROUNDED IN A SOUND PUBLIC POLICY AND IS NOT TO BE WEAKENED. * * * "

AS POINTED OUT IN THE DECISION OF JULY 22, 1955, THE REASON FOR YOUR REQUEST THAT THE ORIGINAL CONTRACT OF SALE BE CANCELED WAS THE FACT THAT YOUR GOVERNMENT IMPOSED AN IMPORT DUTY AND A PURCHASE TAX ON THIS SALE, WHICH YOU CONSIDERED PROHIBITIVE; HOWEVER, OUR GOVERNMENT HAD MADE NO REPRESENTATION TO YOU AS TO THE AMOUNT OF THIS DUTY AND TAX. CONSEQUENTLY, THE FACT THAT YOUR JUDGMENT IN THIS MATTER WAS WRONG AFFORDED NO LEGAL JUSTIFICATION FOR THE CANCELLATION OF THE SALE BY THE CONTRACTING OFFICER.