B-129613, NOV. 13, 1956

B-129613, NOV. 13, 1956

TO MISS MARIE GENEAU:

REFERENCE IS MADE TO LETTER OF OCTOBER 1, 1956, WRITTEN IN YOUR BEHALF BY MR. J. FRANCIS FORD, ATTORNEY, RELATIVE TO YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $3,158.24, REPRESENTING THE BALANCE DUE FOR EMERGENCY REPAIRS PERFORMED BY THE U.S. NAVAL BASE, GUANTANAMO BAY, CUBA, AND TOWAGE RENDERED BY THE SUPERVISOR OF SALVAGE, U.S. NAVY, TO THE YACHT PILGRIM II, WHICH WAS FORMERLY OWNED BY YOU.

THE RECORDS SHOW THAT IN THE MONTHS OF MARCH AND APRIL 1952, YOU DEPOSITED THREE CHECKS TOTALING $2,915 AT THE UNITED STATES NAVAL SUPPLY DEPOT, UNITED STATES NAVAL BASE, GUANTANAMO BAY, TO ESTABLISH AN ADVANCE PAYMENT TO COVER EMERGENCY REPAIRS TO THE YACHT. BASED ON THESE DEPOSITS, THE NAVAL BASE PERFORMED EMERGENCY REPAIRS TOTALING $2,216.64. ON MAY 23, 1952, THE UNITED STATES NAVAL SUPPLY DEPOT, GUANTANAMO BAY, WAS ADVISED THAT TWO OF THE CHECKS TOTALING $2,850 WERE RETURNED BY THE TREASURY AS UNCOLLECTIBLE DUE TO THE AMOUNTS EXCEEDING THE DRAWER'S BALANCE. DURING THE PERIOD OF AUGUST 28 TO AUGUST 31, 1952, THE SUPERVISOR OF SALVAGE RENDERED TOWAGE SERVICES TO THE YACHT FROM GUANTANAMO BAY, TO KEY WEST, FLORIDA, FOR WHICH A CHARGE IN THE AMOUNT OF $2,500 WAS MADE. AFTER UNSUCCESSFUL COLLECTION ATTEMPTS WERE MADE, THE YACHT WAS SOLD AT A UNITED STATES MARSHAL'S SALE ON SEPTEMBER 21, 1953, FOR $1,500 (ADMIRALTY SUIT NO. 1064-M; UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF FLORIDA). THE NET PROCEEDS OF THE SALE REALIZED BY THE DEPARTMENT OF THE NAVY WERE $1,493.40, LEAVING A BALANCE DUE THE UNITED STATES OF $3,158.24.

IN THE LETTER OF OCTOBER 1, 1956, IT IS CONTENDED THAT YOU SHOULD NOT BE CALLED UPON TO PAY THE BALANCE CLAIMED BY THE GOVERNMENT SINCE THE LIBEL WAS STARTED IN DECEMBER OF 1952, AND THE SALE OF THE YACHT WAS NOT HELD UNTIL SEPTEMBER OF 1953, WHICH TIME WAS NOT AT THE PEAK SEASON FOR THE SALE OF SHIPS. ALSO, IT IS CONTENDED, SINCE YOU HAD MADE PARTIAL PAYMENTS ON YOUR INDEBTEDNESS TO THE GOVERNMENT FROM MAY TO SEPTEMBER 1952, IT WAS CONTRARY TO THE SPIRIT OF THE AGREEMENT WHICH HAD BEEN ENTERED INTO BETWEEN YOU AND THE GOVERNMENT IN AUGUST 1952, TO RETURN YOUR PAYMENTS AND TO SELL THE YACHT WITHOUT FURTHER ADVICE TO YOU.

THERE IS ON FILE IN OUR OFFICE A COPY OF AN AGREEMENT ENTERED INTO BETWEEN THE UNITED STATES AND MARIE GENEAU ON AUGUST 28, 1952, WHICH PROVIDES IN PART AS FOLLOWS:

"FIFTH, THE GOVERNMENT AGREES TO PERMIT THE PILGRIM II TO REMAIN AT THE UNITED STATES NAVAL BASE, KEY WEST, FLORIDA, OR OTHER DESTINATION, FOR A REASONABLE TIME, NOT TO EXCEED 60 DAYS, AND TO PERMIT THE OWNER TO ENDEAVOR TO SELL THE PILGRIM II AND FOR THAT PURPOSE TO ENJOY REASONABLE ACCESS TO SAID PILGRIM II FOR HERSELF, HER AGENTS, PROSPECTIVE PURCHASERS, AND THEIR AGENTS, SUBJECT HOWEVER TO ALL APPLICABLE SECURITY RESTRICTIONS AND TO WHATEVER OTHER RESTRICTIONS THE COMMANDER OF SAID BASE MAY IMPOSE IN ORDER TO PREVENT INTERFERENCE WITH NORMAL OPERATIONS.

"SIXTH, THE GOVERNMENT AGREES TO PERMIT THE SALE OF THE PILGRIM II TO ANY PERSON DESIGNATED BY THE OWNER, FREE AND CLEAR OF ANY LIEN, PROVIDED (A) THE SALES PRICE SHALL BE SUFFICIENT TO COVER THE GOVERNMENT'S CLAIM FOR THE AFORESAID EMERGENCY REPAIRS, TOWING SERVICES, WHARFAGE, AND OTHER APPLICABLE CHARGES, (B) THE TERMS OF THE SALE INCLUDE PAYMENT IN CASH OF AN AMOUNT SUFFICIENT TO COVER THE GOVERNMENT'S CLAIM AS AFORESAID, (C) THE GOVERNMENT'S LIEN ATTACHES TO THE PROCEEDS OF SUCH SALE, PRIOR TO ANY CLAIM OF THE OWNER OR ANY CREDITOR OF THE OWNER OR ANYONE ELSE CLAIMING BY OR THROUGH THE OWNER, AND (D) ALL TERMS AND CONDITIONS OF SUCH SALE HAVE BEEN APPROVED BY THE GOVERNMENT AS MEETING THE FOREGOING REQUIREMENTS.

"EIGHTH, PRIOR TO AND PENDING ANY SUCH SALE, THE GOVERNMENT RESERVES ALL ITS RIGHTS AGAINST THE OWNER AND AGAINST THE PILGRIM II, AND RESERVES THE RIGHT, UPON THE EXPIRATION OF 60 DAYS FROM THE ARRIVAL OF THE PILGRIM II AT KEY WEST, OR OTHER DESTINATION, WITHOUT PRIOR SATISFACTION OF THE GOVERNMENT'S CLAIM, TO COMMENCE LEGAL PROCEEDINGS AGAINST THE OWNER IN PERSONAM OR AGAINST THE PILGRIM II, IN REM, OR BOTH.'

IT WILL BE NOTED FROM THE AGREEMENT THAT THERE WAS NO OBLIGATION ON THE PART OF THE GOVERNMENT TO HOLD A SALE OF THE VESSEL AT ANY PARTICULAR TIME OF THE YEAR. THE GOVERNMENT AGREED TO PERMIT THE YACHT TO REMAIN AT THE UNITED STATES NAVAL BASE, KEY WEST, OR OTHER PORT FOR A PERIOD OF 60 DAYS BEFORE COMMENCING LEGAL PROCEEDINGS AGAINST THE OWNER OR AGAINST THE YACHT ITSELF. THE YACHT ARRIVED IN KEY WEST ON OR ABOUT AUGUST 31, 1952. THE GOVERNMENT DID NOT START LEGAL PROCEEDINGS AGAINST THE YACHT UNTIL AFTER UNSUCCESSFUL COLLECTION ATTEMPTS WERE MADE TO SATISFY THE INDEBTEDNESS OR APPROXIMATELY FOUR MONTHS AFTER THE YACHT ARRIVED AT KEY WEST.

REGARDING THE FOUR MONEY ORDERS OF $50 EACH FORWARDED BY YOU TO THE UNITED STATES ATTORNEY AT MIAMI, FLORIDA, IN MAY, JULY, AUGUST AND OCTOBER, 1953, IT HAS BEEN INFORMALLY ASCERTAINED FROM THE DEPARTMENT OF JUSTICE THAT THESE PAYMENTS WERE IN THE NATURE OF A COMPROMISE OFFER ON YOUR PART TO PREVENT THE GOVERNMENT FROM PROCEEDING WITH THE SALE OF THE YACHT. THE DEPARTMENT OF JUSTICE REJECTED THE COMPROMISE OFFER AND RETURNED THE MONEY ORDERS SHORTLY AFTER THE SALE OF THE YACHT.

ACCORDINGLY, IT IS REQUESTED THAT THE AMOUNT DUE BE REMITTED TO OUR OFFICE. IF PAYING THE AMOUNT IN FULL AT THIS TIME WOULD WORK A HARDSHIP, YOU SHOULD SUBMIT AN INITIAL PAYMENT TOGETHER WITH A DEFINITE PLAN FOR PAYMENT OF THE BALANCE IN MONTHLY INSTALLMENTS OVER A REASONABLE LENGTH OF TIME. EACH PAYMENT SHOULD BE IN THE FORM OF A BANK DRAFT, CERTIFIED CHECK OR MONEY ORDER MADE PAYABLE TO "U.S. GENERAL ACCOUNTING OFFICE" AND FORWARDED TO THE CLAIMS DIVISION, UNITED STATES GENERAL ACCOUNTING OFFICE, POST OFFICE BOX 2610, WASHINGTON 13, D.C., REFERRING TO CLAIM NO. DW-Z 1588912-10.