B-124480, AUG. 10, 1956
Highlights
RA 33 408 715: REFERENCE IS MADE TO YOUR LETTER OF APRIL 24. WHEREIN YOU WERE ADVISED THAT THE DISCHARGE IN BANKRUPTCY OBTAINED BY YOUR FORMER PARTNER. YOU NOW CONTEND THAT YOU ARE NOT INDEBTED TO THE GOVERNMENT AS SUBROGEE OF THE BANK OF AMERICAN WHO FORECLOSED ON THE LOAN. (3) THE GOVERNMENT IS ESTOPPED FROM MAKING ITS CLAIM AGAINST YOU. (4) YOU WERE DISCHARGED OF YOUR OBLIGATION BECAUSE OF THE ASSUMPTION OF LIABILITY BY YOUR FORMER PARTNER AND SUBSEQUENT RATIFICATION BY THE BANK OF AMERICA. WE ARE NOT AWARE OF ANY PROVISION OF LAW THAT WOULD OPERATE AS A BAR TO ANY PROCEEDING THAT MAY BE INSTITUTED BY THE UNITED STATES TO ENFORCE PAYMENT OF THIS DEBT. BEING PREDICATED UPON AN AGREEMENT TO WHICH NEITHER THE LENDING AGENCY NOR THE UNITED STATES WAS A PARTY ARE EQUALLY INEFFECTUAL.
B-124480, AUG. 10, 1956
TO MASTER SERGEANT ROBERT F. ALLEN, RA 33 408 715:
REFERENCE IS MADE TO YOUR LETTER OF APRIL 24, 1956, WITH ENCLOSURES, RELATIVE TO OUR DECISION TO YOU DATED AUGUST 17, 1955, B-124480, WHEREIN YOU WERE ADVISED THAT THE DISCHARGE IN BANKRUPTCY OBTAINED BY YOUR FORMER PARTNER, WHO HAD PREVIOUSLY AGREED TO SAVE YOU HARMLESS OF A BUSINESS INDEBTEDNESS, DID NOT OPERATE TO ABSOLVE YOU FROM LIABILITY UPON A VETERANS ADMINISTRATION GUARANTEED LOAN MADE TO YOU AND YOUR FORMER PARTNER, JOINTLY AND SEVERALLY.
YOU NOW CONTEND THAT YOU ARE NOT INDEBTED TO THE GOVERNMENT AS SUBROGEE OF THE BANK OF AMERICAN WHO FORECLOSED ON THE LOAN, FOR SEVERAL REASONS, AMONG THEM BEING: (1) THAT THE STATUTE OF LIMITATIONS HAS EXPIRED; (2) LACHES ON THE PART OF THE GOVERNMENT; (3) THE GOVERNMENT IS ESTOPPED FROM MAKING ITS CLAIM AGAINST YOU; AND (4) YOU WERE DISCHARGED OF YOUR OBLIGATION BECAUSE OF THE ASSUMPTION OF LIABILITY BY YOUR FORMER PARTNER AND SUBSEQUENT RATIFICATION BY THE BANK OF AMERICA, THE LENDING AGENCY.
AS TO YOUR PLEAS OF LACHES AND THE STATUTE OF LIMITATIONS, WE ARE NOT AWARE OF ANY PROVISION OF LAW THAT WOULD OPERATE AS A BAR TO ANY PROCEEDING THAT MAY BE INSTITUTED BY THE UNITED STATES TO ENFORCE PAYMENT OF THIS DEBT.
YOUR TWO REMAINING CONTENTIONS, BEING PREDICATED UPON AN AGREEMENT TO WHICH NEITHER THE LENDING AGENCY NOR THE UNITED STATES WAS A PARTY ARE EQUALLY INEFFECTUAL. IT DOES NOT APPEAR THAT EITHER THE BANK OF AMERICA OR THE UNITED STATES PERFORMED ANY ACT WHICH INDUCED ACTION ON YOUR PART TO YOUR DETRIMENT UPON WHICH TO PREDICATE AN ESTOPPEL. THE MATTER OF YOUR AGREEMENT WITH YOUR FORMER PARTNER WAS DISCUSSED IN OUR EARLIER DECISION AND WE ADHERE TO THAT VIEW.
THE LOAN WAS MADE TO YOU AND YOUR FORMER PARTNER AS INDIVIDUALS AND INDIVIDUAL RESPONSIBILITY CONTINUES UNTIL THE LOAN IS LIQUIDATED. ACCORDINGLY, THE APPROPRIATE ADMINISTRATIVE AGENCY WILL BE ADVISED OF THE REJECTION OF YOUR CONTENTIONS AND TO ATTEMPT COLLECTION OF THE INDEBTEDNESS IF NOT INCONSISTENT WITH THEIR POLICY.