B-133905, OCT. 15, 1957

B-133905, OCT. 15, 1957

TO MR. JAMES T. CONWELL, ATTORNEY AT LAW:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 10, 1957, CONCERNING THE CLAIM OF BILLIE AND TAMER TAYLOR FOR THE PROCEEDS OF A CHECK STATED TO HAVE BEEN ISSUED TO THEM AS RESTITUTION OF RENTAL OVERCHARGES FOR THE PREMISES FORMERLY OCCUPIED BY THEM AT 2418 WEST MADISON AVENUE, CHICAGO, ILLINOIS. SPECIFICALLY YOU REQUEST TO BE ADVISED WHETHER IT IS POSSIBLE TO TAKE LEGAL ACTION AGAINST THE GOVERNMENT FOR THE PROCEEDS OF THE CHECK.

AN UNDATED LETTER FROM THE CLAIMANTS ADDRESSED TO THE OFFICE OF RENT STABILIZATION, BUDGET AND FINANCE BRANCH, WAS RECEIVED IN OUR OFFICE ON JULY 30, 1956. IN THE CITED LETTER IT IS STATED THAT THE PREMISES OCCUPIED BY THE CLAIMANTS WERE RENTED FROM MARGIE MATHEWS AND THAT THE CHECK REPRESENTS OVERCHARGES RECOVERED FROM THE LANDLORD. SUBSEQUENTLY, THE CLAIMANTS FORWARDED HERE AN UNDATED PRINTED CARD SUCH AS WAS USED BY THE FORMER OFFICE OF RENT STABILIZATION IN MAILING OUT CHECKS TO TENANTS FOR WHOM REFUNDS HAD BEEN COLLECTED. THE CARD IS FOR THE PURPOSE OF NOTIFYING THE ADDRESSEE OF THE ISSUANCE OF AN ACCOMPANYING CHECK AS A REFUND OF THE MAXIMUM RENT REGULATIONS RECOVERED FROM THE LANDLORD FOR THE BENEFIT OF THE ADDRESSEE. THE CARD CONTAINS INSTRUCTIONS, AS FOLLOWS:

"IF ADDITIONAL INFORMATION CONCERNING THIS PAYMENT IS DESIRED, YOUR INQUIRY SHOULD BE DIRECTED TO YOUR LOCAL AREA RENT OFFICE AND IN WRITING PLEASE GIVE THE NAME OF THE LANDLORD, THE ADDRESS OF THE HOUSING ACCOMMODATIONS INVOLVED, AND DOCKET NUMBER, IN ORDER THAT THE CASE CAN BE IDENTIFIED WITHOUT UNNECESSARY DELAY.'

THE ONLY OTHER INFORMATION CONCERNING THE MATTER IS CONTAINED IN YOUR LETTER OF JUNE 24, 1957, WHEREIN IT IS STATED THAT MRS. TAYLOR INFORMED YOU THAT SHE SENT HER RENT RECEIPTS TO THE OPA WHEN SHE LIVED AT THE ABOVE ADDRESS; THAT SHE RECEIVED A CARD NO. PL COR-2W; THAT ON THE BASIS OF HER RECEIPTS SHE WAS SUPPOSED TO BE PAID $520; THAT THE ROOM OCCUPIED SHOULD HAVE RENTED FOR $5 PER WEEK WHEREAS SHE WAS CHARGED $13 PER WEEK; AND THAT SHE NEVER RECEIVED THE CHECK FOR $520 WITH THE ABOVE PRINTED CARD.

ALL AVAILABLE SOURCES HAVE BEEN CONTACTED IN AN EFFORT TO OBTAIN THE CASE FILE OF THE FORMER OFFICE OF RENT STABILIZATION, AND IN RESPONSE TO OUR INQUIRY, GENERAL SERVICES ADMINISTRATION, FEDERAL RECORDS CENTER, CHICAGO, ILLINOIS, INFORMED US THAT THESE RECORDS WERE DESTROYED ON AUGUST 31, 1954, IN ACCORDANCE WITH AN AUTHORIZATION OF THE 83D CONGRESS, HOUSE REPORT 455, APPROVED MAY 25, 1953. ALL OTHER EFFORTS TO OBTAIN INFORMATION CONCERNING THE TRANSACTION HAVE BEEN UNSUCCESSFUL. ACCORDINGLY, BY LETTER OF MAY 20, 1957, MR. AND MRS. TAYLOR WERE INFORMED THAT UNLESS THEY COULD FURNISH ADDITIONAL IDENTIFYING INFORMATION RELATIVE TO THE CHECK, SUCH AS THE DATE, NUMBER AND AMOUNT IT WOULD BE IMPOSSIBLE TO TRACE IT.

WHILE THE DATE OF THE CHECK HAS NOT BEEN FURNISHED IT WOULD APPEAR THAT IF THE CHECK WAS ISSUED BY THE OFFICE OF RENT STABILIZATION AS INDICATED BY THE CARD SUBMITTED BY THE CLAIMANTS IT MUST HAVE BEEN ISSUED SOMETIME BETWEEN JULY 31, 1951, THE DATE THAT OFFICE WAS CREATED, AND JULY 31, 1953, THE EFFECTIVE DATE OF ITS LIQUIDATION. IF AS ALLEGED BY THE CLAIMANTS THEY DID NOT RECEIVE THE CHECK IT WAS THEIR DUTY--- IN VIEW OF THE PLAIN INSTRUCTIONS ON THE ABOVE CARD--- TO CONTACT THEIR LOCAL RENT AREA OFFICE WITHOUT DELAY. IN VIEW OF SUCH INSTRUCTIONS, IT WOULD APPEAR UNLIKELY THAT, IF THE CLAIMANT DID NOT RECEIVE THE CHECK WITHIN A REASONABLE TIME AFTER RECEIVING THE CARD SHE WOULD HAVE WAITED SEVERAL YEARS BEFORE FILING A CLAIM. EVEN ASSUMING THAT THE CLAIMANTS DID NOT RECEIVE AND NEGOTIATE THE CHECK THEIR LACHES IN FAILING TO TIMELY PURSUE THEIR CLAIM HAS RESULTED IN THE CHECK BEING DESTROYED AND THE GOVERNMENT BEING PLACED IN THE POSITION WHERE IT CAN NOT IN ALL PROBABILITY RECOVER THE AMOUNT OF THE CHECK FROM THE ENDORSERS AT THIS TIME EVEN IF THEIR ENDORSEMENT THEREON WAS FORGED. SEE IN THIS CONNECTION THE ACT OF MARCH 6, 1946, 60 STAT. 31 (31 U.S.C. 129-131), PROHIBITING ANY ATTEMPT BY THE UNITED STATES TO ENFORCE THE LIABILITY OF AN ENDORSER ON A GOVERNMENT CHECK UNLESS ACTION TO ENFORCE THE SAME OR NOTICE OF LIABILITY IS GIVEN THE ENDORSER WITHIN SIX YEARS AFTER PRESENTATION OF THE CHECK TO THE DRAWEE FOR PAYMENT.

IN VIEW OF THE FOREGOING OUR OFFICE IS PRECLUDED FROM TAKING FAVORABLE ACTION ON THE CLAIM ON THE BASIS OF THE PRESENT RECORD.

AS TO YOUR REQUEST FOR ADVICE CONCERNING LEGAL ACTION AGAINST THE GOVERNMENT THIS OFFICE MAY NOT UNDERTAKE TO ADVISE YOU, WHAT RECOURSE, IF ANY, THE CLAIMANTS MAY HAVE IN THE UNITED STATES COURTS. YOUR ATTENTION IS INVITED, HOWEVER, TO SECTION 2401 OF TITLE 28 U.S.C. CONCERNING THE TIME WITHIN WHICH A SUIT MAY BE INSTITUTED AGAINST THE UNITED STATES.