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B-155961, JAN. 23, 1967

B-155961 Jan 23, 1967
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COLLECTION PROCEEDINGS WERE PENDING ON A MUCH LARGER CLAIM FOR DAMAGE TO PROPERTY SHIPPED UNDER BILL OF LADING B- 8701711. 653.88 REPORTEDLY IS STILL OUTSTANDING. IT WAS OUR UNDERSTANDING THAT THE SUIT FILED IN OCTOBER 1965 WOULD BE TRIED UNDER THE SUMMARY JUDGMENT PROCEDURE AND A REASONABLY PROMPT DECISION REACHED ON THE BASIC LEGAL QUESTION CONCERNING CARRIER LIABILITY FOR THE FULL AMOUNT OF THE LOSS. WE UNDERSTAND NOW THAT THE CASE WILL NOT BE DISPOSED OF UNDER THE SUMMARY JUDGMENT PROCEDURE AND THAT YOU HAVE DECIDED THAT HEARINGS AND THE TAKING OF TESTIMONY BEFORE A TRIAL COMMISSIONER WILL BE NECESSARY. IF THE TRIAL PROCEDURE IS FOLLOWED. THAT OFFICE HAS INQUIRED OF US WHETHER FURTHER COLLECTION ACTION IS APPROPRIATE AT THIS TIME IN VIEW OF THE PRESENT INDEFINITE SUSPENSION OF THE LITIGATION IN THE COURT OF CLAIMS.

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B-155961, JAN. 23, 1967

TO PHINNEY, HALLMAN, PULLEY AND LIVINGSTONE:

IN OCTOBER 1965 YOU FILED A PETITION IN THE UNITED STATES COURT OF CLAIMS, ON BEHALF OF C AND H TRANSPORTATION CO., INC., TO RECOVER A DEDUCTION IN THE AMOUNT OF $6,375.37, MADE BY THE U.S. ARMY FINANCE CENTER TO SATISFY A CLAIM FOR DAMAGE TO GOVERNMENT PROPERTY MOVED UNDER BILL OF LADING B-4059954. AT THAT TIME, COLLECTION PROCEEDINGS WERE PENDING ON A MUCH LARGER CLAIM FOR DAMAGE TO PROPERTY SHIPPED UNDER BILL OF LADING B- 8701711. AT THE REQUEST OF THIS OFFICE, THE FINANCE CENTER AGREED TO WITHHOLD FURTHER COLLECTION OF THE CLAIM FOR AN INDEFINITE PERIOD OF TIME AND A BALANCE OF $90,653.88 REPORTEDLY IS STILL OUTSTANDING.

AT THE TIME WE ASKED THE FINANCE CENTER TO WITHHOLD FURTHER COLLECTION OF THE BALANCE OF THE LARGER CLAIM, IT WAS OUR UNDERSTANDING THAT THE SUIT FILED IN OCTOBER 1965 WOULD BE TRIED UNDER THE SUMMARY JUDGMENT PROCEDURE AND A REASONABLY PROMPT DECISION REACHED ON THE BASIC LEGAL QUESTION CONCERNING CARRIER LIABILITY FOR THE FULL AMOUNT OF THE LOSS. THE RESOLUTION OF THIS QUESTION APPARENTLY ALSO WOULD AFFECT THE LARGER CLAIM.

WE UNDERSTAND NOW THAT THE CASE WILL NOT BE DISPOSED OF UNDER THE SUMMARY JUDGMENT PROCEDURE AND THAT YOU HAVE DECIDED THAT HEARINGS AND THE TAKING OF TESTIMONY BEFORE A TRIAL COMMISSIONER WILL BE NECESSARY. IF THE TRIAL PROCEDURE IS FOLLOWED, A FINAL DECISION MIGHT BE DELAYED FOR SEVERAL MONTHS, POSSIBLY A YEAR.

THE PRIMARY RESPONSIBILITY FOR COLLECTION OF THE BALANCE OF THE LARGER CLAIM RESTS WITH THE TRANSPORTATION LOSS AND DAMAGE DIVISION, DIRECTORATE OF ADJUDICATION, HEADQUARTERS AIR FORCE ACCOUNTING AND FINANCE CENTER, 3800 YORK STREET, DENVER, COLORADO 80205. THAT OFFICE HAS INQUIRED OF US WHETHER FURTHER COLLECTION ACTION IS APPROPRIATE AT THIS TIME IN VIEW OF THE PRESENT INDEFINITE SUSPENSION OF THE LITIGATION IN THE COURT OF CLAIMS. SINCE IT APPEARS THAT A FINAL DECISION WILL NOT BE REACHED IN THE COURT OF CLAIMS CASE FOR AN INDEFINITE ADDITIONAL PERIOD OF TIME, WE ARE WITHDRAWING OUR REQUEST FOR SUSPENSION OF COLLECTION PROCEEDINGS AND WE ARE INFORMING THE DENVER FINANCE CENTER THAT WE WILL NOT OBJECT TO THE RESUMPTION OF COLLECTION EFFORTS THIRTY DAYS AFTER THE DATE OF THIS LETTER.

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