B-120290, MAY 2, 1957

B-120290, MAY 2, 1957

TO MR. SAMUEL W. FRY, DISTRICT COURT OF TULSA COUNTY:

A COPY OF YOUR LETTER DATED MARCH 21, 1957, ADDRESSED TO THE U.S. TREASURER'S DEPARTMENT, REGARDING THE ABOVE-ENTITLED CAUSE, WAS FORWARDED TO OUR OFFICE BY SENATOR ROBERT S. KERR, AS AN ENCLOSURE, WITH LETTER DATED APRIL 5, 1957, FROM JACK T. CONN OF THE LAW FIRM OF KERR, LAMBERT, CONN AND ROBERTS, OF ADA, OKLAHOMA. THE ORIGINAL OF YOUR LETTER WAS RECEIVED IN THE TREASURY DEPARTMENT BUT SINCE THE MATTER IS BEFORE OUR OFFICE REPLY THERETO WILL BE MADE HERE.

YOUR LETTER REQUESTS ADVICE AS TO WHETHER TREASURY CHECK NO. 10,035,282, DATED AUGUST 29, 1955, ISSUED IN THE AMOUNT OF $23,721.94, TO THE ORDER OF MAE T. STEBBINS AND BARNEY W. HARRELL, A CO PARTNERSHIP, D/B/A STEBBINS CONSTRUCTION COMPANY, HAS BEEN PAID SO THAT THE PROCEEDS THEREOF DEPOSITED IN AN OFFICIAL DEPOSITORY ACCOUNT COULD BE DISBURSED WITHOUT INCURRING LIABILITY. THE CHECK WAS ISSUED TO THE PAYEES LISTED PURSUANT TO FINDINGS AND JUDGMENT RENDERED IN CASE NO. 6249 BY THE UNITED STATES DISTRICT COURT IN AND FOR THE WESTERN DISTRICT OF OKLAHOMA, WHICH FINDINGS AND JUDGMENT WERE AUTHORIZED UNDER PRIVATE LAW 305, 83RD CONGRESS, APPROVED MARCH 17, 1954. THE RECORD SHOWS THAT THE CHECK WAS DELIVERED TO JACK T. CONN, ATTORNEY FOR THE STEBBINS CONSTRUCTION COMPANY, PURSUANT TO AN AUTHORIZATION SIGNED BY BARNEY W. HARRELL. MR. CONN, IN HIS CORRESPONDENCE BEFORE OUR OFFICE, CONTENDS THAT BEFORE THE CHECK WAS RECEIVED BY HIM THE R. H. SIEGFRIED COMPANY OF TULSA CLAIMED THE PROCEEDS UNDER AN ASSIGNMENT FROM STEBBINS. INASMUCH AS SIEGFRIED AND STEBBINS COULD NOT AGREE ON THE MATTER OF THE ASSIGNMENT, THE ABOVE ENTITLED ACTION WAS FILED. THEREAFTER, SINCE BOTH PARTIES AGREED THAT THE LEGAL FEE WAS PAYABLE FROM THE PROCEEDS OF THE CHECK, THE COURT ORDERED THAT THE CHECK BE CASHED BUT BECAUSE ONE OF THE PARTNERS REFUSED TO ENDORSE THE CHECK, THE ENDORSEMENT OF THE PAYEES' NAMES WAS PLACED THEREON BY YOU PURSUANT TO AN ORDER OF THAT COURT. ACCORDING TO MR. CONN YOU WERE ADVISED THEREAFTER BY OFFICIALS OF THE NATIONAL BANK OF TULSA NOT TO DISBURSE THE FUNDS UNTIL AUTHORIZED TO DO SO BY THE TREASURER.

YOU ARE ADVISED THAT THE CHECK IN QUESTION WAS PAID BY THE TREASURER OF THE UNITED STATES ON JANUARY 23, 1957. IN THAT CONNECTION OUR OFFICE HAS RECEIVED SEVERAL REQUESTS FROM THE PARTNERS, BARNEY W. HARRELL AND MAE T. STEBBINS, FOR CANCELLATION OF THE CHECK AND FOR THE ISSUANCE OF A SUBSTITUTE FOR DELIVERY TO THEM. WHILE THE REASON FOR SUCH REQUEST WAS NOT THEN KNOWN, OUR OFFICE REPEATEDLY REFUSED TO TAKE SUCH ACTION BECAUSE THE ORIGINAL CHECK WAS DELIVERED TO JACK T. CONN PURSUANT TO AN AUTHORIZATION SIGNED BY BARNEY W. HARRELL AND BECAUSE IT LONG HAS BEEN THE RULE THAT THE UNITED STATES WILL NOT INVOLVE ITSELF IN MATTERS IN DISPUTE BETWEEN ATTORNEY AND CLIENT.

THE ENDORSEMENT OF THE NAMES OF THE PAYEES OF THE CHECK BY YOU, PURSUANT TO THE ORDER OF THE DISTRICT COURT OF TULSA COUNTY, RAISES THE QUESTION OF WHETHER THE PAYMENT THEREOF BY THE TREASURER OF THE UNITED STATES RESULTS IN A VALID ACQUITTANCE TO THE UNITED STATES SO FAR AS THE PAYEES ARE CONCERNED. IT APPEARS THAT A DISPUTE HAS ARISEN BETWEEN R. H. SIEGFRIED COMPANY AND THE STEBBINS CONSTRUCTION COMPANY AS TO THE PARTIES ENTITLED TO THE PROCEEDS BY VIRTUE OF A PURPORTED ASSIGNMENT, THAT THE DISPUTE NOW IS IN LITIGATION AND THAT THE COURT HAS JURISDICTION OVER ALL PARTIES CLAIMING A RIGHT IN THE CHECK PROCEEDS. FURTHER, SINCE BOTH THE R. H. SIEGFRIED COMPANY AND THE STEBBINS CONSTRUCTION COMPANY HAVE AGREED THAT THE LEGAL FEES ARE PAYABLE OUT OF THE PROCEEDS OF THE CHECK, OUR OFFICE WOULD HAVE NO OBJECTION TO PAYMENT OF SUCH LEGAL FEES FROM THE AMOUNT IN THE OFFICIAL DEPOSITORY ACCOUNT.

AS TO THE BALANCE OF THE PROCEEDS ON WHICH THE DISPUTED CLAIM ARISES BY REASON OF A PURPORTED ASSIGNMENT BY STEBBINS TO SIEGFRIED, WE DIRECT YOUR ATTENTION TO THE PROVISIONS IN 31 U.S.C. 203 RELATING TO ASSIGNMENT OF CLAIMS UPON THE UNITED STATES. THERE WOULD APPEAR TO BE SOME QUESTION AS TO THE VALIDITY OF THE ASSIGNMENT.