B-63597 February 21, 1952

B-63597 February 21, 1952

Honorable Arthur V. Watkins United States Senate

My dear Senator:

I have your letter of February 15, 1952, relative to the claim of Pugsley, Hayes & Hampton of Salt Lake City, Utah, for attorneys fees alleged to be due for services rendered in the prosecuting a claim of the Lym Engineering Company against the Government. It is stated in your letter to be the view of the attorneys that the claim for the fees amounts to a lien against the claim of the Lyn Engineering Company -- on which an award was made by the Department of the Interior and is superior to the Government's Claim for unpaid taxes.

It is assumed that you have reference to the claim of the Lym Engineering Company for the sum of $47,968.32, allowed by the Secretary of the Interior pursuant to the authority conferred by the act of August 7, 1946, 60 Stat. 902, and to the request of Pugsley, Hayes & Hampton, attorneys at Law, of Salt Lake City, Utah, that 10 percent of that sum be withheld and paid over to them as their fee for prosecuting the claim against the Government, on the theory that their claim constitutes a lien which is superior to the Government's claim against the Lym Engineering Company for taxes.

There is enclosed a copy of my letter of today to Pugsley, Hayes & Hampton, which sets forth fully the position of this office in the matter and the reasons why their claim properly could not be paid by this office.

Sincerely yours,

(Singed) Lindsay C. Warren Comptroller General of the United States

Enclosure