B-123785, MAR. 30, 1956
Highlights
ATTORNEY AT LAW: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED FEBRUARY 15. YOU STATE THAT YOU ARE PREPARED TO RECOMMEND TO YOUR CLIENT THAT PAYMENT OF THE CLAIM SHOULD BE MADE PROVIDING WE EXECUTE A RELEASE OF ALL CLAIMS RELATING TO THE LOGS AND RAFTS SOLD TO THEM BY BILLMOR SPRUCE MILLS. IT IS CLEAR FROM THE RECORD THAT LEGAL TITLE TO THE LOGS NEVER VESTED IN THE BILLMOR SPRUCE MILLS. IT IS NOTED FROM THE ENCLOSURE WITH YOUR LETTER THAT IN CONSIDERATION OF A RELEASE OF ALL FUTURE CLAIMS BY THE COMPANY AGAINST THE FUNDS. IN VIEW OF THE FOREGOING THE LEGAL NECESSITY FOR THE PREREQUISITIES DEMANDED BY YOU IS NOT UNDERSTOOD. ALSO IS WITHOUT AUTHORITY TO ENTER INTO THE UNDERTAKING WHICH YOU APPEAR TO REQUIRE.
B-123785, MAR. 30, 1956
TO MR. HUGH P. LEGG, ATTORNEY AT LAW:
RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED FEBRUARY 15, 1956, AND ENCLOSURE, WRITTEN ON BEHALF OF CROWN ZELLERBACH CANADA, LTD., STATED BY YOU TO BE THE SUCCESSOR CORPORATION TO PACIFIC MILLS, LTD., IN RESPONSE TO OUR DEMAND FOR PAYMENT OF $8,578.28, REPRESENTING THE VALUE OF A QUANTITY OF GOVERNMENT-OWNED LOGS DELIVERED TO THE FORMER COMPANY BY BILLMOR SPRUCE MILLS, LTD. YOU STATE THAT YOU ARE PREPARED TO RECOMMEND TO YOUR CLIENT THAT PAYMENT OF THE CLAIM SHOULD BE MADE PROVIDING WE EXECUTE A RELEASE OF ALL CLAIMS RELATING TO THE LOGS AND RAFTS SOLD TO THEM BY BILLMOR SPRUCE MILLS, LTD., AND FURNISH AN UNDERTAKING INDEMNIFYING YOUR CLIENT AGAINST ALL CONFLICTING CLAIMS WHICH MAY BE MADE BY BILLMOR SPRUCE MILLS, LTD.
THIS TRANSACTION AROSE AS A RESULT OF A COMPLETE MISUNDERSTANDING ON THE PART OF THE PARTIES INVOLVED, AND IT IS CLEAR FROM THE RECORD THAT LEGAL TITLE TO THE LOGS NEVER VESTED IN THE BILLMOR SPRUCE MILLS, LTD., REGARDLESS OF THE REPRESENTATIONS MADE TO YOUR CLIENT, AND THEREFORE THE COMPANY, WHICH HAS SINCE BEEN DISSOLVED, HAS NO COLOR OF RIGHT TO PAYMENT OF THE FUNDS IN QUESTION. MOREOVER, IT IS NOTED FROM THE ENCLOSURE WITH YOUR LETTER THAT IN CONSIDERATION OF A RELEASE OF ALL FUTURE CLAIMS BY THE COMPANY AGAINST THE FUNDS, YOUR CLIENT HAS AGREED TO REMIT THE SUM OF $2,896.59, DUE BILLMOR SPRUCE MILLS, LTD., UNDER A SEPARATE TRANSACTION.
IN VIEW OF THE FOREGOING THE LEGAL NECESSITY FOR THE PREREQUISITIES DEMANDED BY YOU IS NOT UNDERSTOOD. WHILE OUR OFFICE HAS NO AUTHORITY TO EXECUTE A RELEASE OF ALL FUTURE CLAIMS AGAINST YOUR CLIENT RELATING TO THE MATTER, IN CONSIDERATION OF PAYMENT OF THE DEMAND, AND ALSO IS WITHOUT AUTHORITY TO ENTER INTO THE UNDERTAKING WHICH YOU APPEAR TO REQUIRE, YOU ARE ADVISED THAT THERE IS NO OBJECTION IF THE CHECK IN PAYMENT OF THE AFORESAID CLAIM BEARS AN APPROPRIATE LEGEND TO THE EFFECT THAT IT IS IN FULL AND FINAL SETTLEMENT OF ALL CLAIMS OF THE UNITED STATES ARISING OUT OF THE SALE OF LOGS TO YOUR CLIENT BY BILLMOR SPRUCE MILLS, LTD.
YOU MAY BE ADVISED THAT ORDINARILY OUR OFFICE DOES NOT INCLUDE IN THE GOVERNMENT'S CLAIM AGAINST A DEBTOR ANY AMOUNT FOR INTEREST WHERE THERE IS A REMITTANCE UPON DEMAND. HOWEVER, WHERE IT BECOMES NECESSARY TO RESORT TO LITIGATION SUCH ITEM IS INCLUDED IN THE PETITION, OR IS ADDED TO THE BASIC OBLIGATION AND COLLECTED BY SET OFF FROM FUTURE AMOUNTS OTHERWISE PAYABLE TO YOUR CLIENT.