TENNESSEE: REFERENCE IS MADE TO YOUR LETTER OF MAY 16. CONCERNING YOUR CLAIM FOR DAMAGES ALLEGED TO HAVE BEEN SUSTAINED BY YOU AND MEMBERS OF YOUR FAMILY INCIDENT TO THE ACQUISITION BY THE TENNESSEE VALLEY AUTHORITY OF CERTAIN TRACTS OF YOUR LAND IN HUMPHREYS COUNTY. THE CLAIM ORIGINALLY WAS SUBMITTED TO OUR CLAIMS DIVISION BY YOUR LETTER OF JANUARY 18. YOU WERE ADVISED THAT THE CLAIM HAD BEEN TRANSMITTED TO THE TENNESSEE VALLEY AUTHORITY FOR SETTLEMENT. YOU WERE INFORMED THAT SUCH ACTION WAS TAKEN SINCE THE AUTHORITY IS A WHOLLY OWNED GOVERNMENT CORPORATION WITHIN THE GOVERNMENT CORPORATION CONTROL ACT OF DECEMBER 6. IT WAS EXPLAINED THAT THE REGULATIONS PROMULGATED UNDER THE PROVISIONS OF THE CITED STATUTE CONTEMPLATE THAT CLAIMS AGAINST GOVERNMENT CORPORATIONS WOULD NOT BE CONSIDERED BY THIS OFFICE BUT WOULD BE TURNED OVER TO THE RESPECTIVE CORPORATION INVOLVED UNLESS SUCH CONSIDERATION SHOULD BE SPECIFICALLY REQUESTED BY SUCH CORPORATION.
B-124078, JUN. 7, 1955
TO HONORABLE W. B. TURNER, COLUMBIA, TENNESSEE:
REFERENCE IS MADE TO YOUR LETTER OF MAY 16, 1955, CONCERNING YOUR CLAIM FOR DAMAGES ALLEGED TO HAVE BEEN SUSTAINED BY YOU AND MEMBERS OF YOUR FAMILY INCIDENT TO THE ACQUISITION BY THE TENNESSEE VALLEY AUTHORITY OF CERTAIN TRACTS OF YOUR LAND IN HUMPHREYS COUNTY, TENNESSEE, FOR USE IN CONSTRUCTION OF THE KENTUCKY, TENNESSEE LAKE.
THE CLAIM ORIGINALLY WAS SUBMITTED TO OUR CLAIMS DIVISION BY YOUR LETTER OF JANUARY 18, 1954. BY LETTER OF MARCH 3, 1954, YOU WERE ADVISED THAT THE CLAIM HAD BEEN TRANSMITTED TO THE TENNESSEE VALLEY AUTHORITY FOR SETTLEMENT. YOU WERE INFORMED THAT SUCH ACTION WAS TAKEN SINCE THE AUTHORITY IS A WHOLLY OWNED GOVERNMENT CORPORATION WITHIN THE GOVERNMENT CORPORATION CONTROL ACT OF DECEMBER 6, 1945, 59 STAT. 597, AS AMENDED, 31 U.S.C. 841. IT WAS EXPLAINED THAT THE REGULATIONS PROMULGATED UNDER THE PROVISIONS OF THE CITED STATUTE CONTEMPLATE THAT CLAIMS AGAINST GOVERNMENT CORPORATIONS WOULD NOT BE CONSIDERED BY THIS OFFICE BUT WOULD BE TURNED OVER TO THE RESPECTIVE CORPORATION INVOLVED UNLESS SUCH CONSIDERATION SHOULD BE SPECIFICALLY REQUESTED BY SUCH CORPORATION. BY LETTER OF APRIL 8, 1954, THE AUTHORITY INFORMED US THAT YOUR CLAIM HAD BEEN CONSIDERED AND DENIED.
WHILE THE AUTHORITY IS AN AGENCY OF THE UNITED STATES (ASHWANDER V. TENNESSEE VALLEY AUTHORITY, 297 U.S. 288; POSEY V. TENNESSEE VALLEY AUTHORITY, 93 F.2D 726), IT CONSISTENTLY HAS BEEN HELD THAT CLAIMS AGAINST THE AUTHORITY ARE NOT CLAIMS AGAINST THE GOVERNMENT OF THE UNITED STATES IN THE SENSE OF BEING FOR ADJUSTMENT AND SETTLEMENT BY THIS OFFICE UNDER THE PROVISIONS OF SECTION 236, REVISED STATUTES, AS AMENDED BY SECTION 305 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 24, 31 U.S.C. 41.
SETTLEMENT OF CLAIMS AGAINST THE AUTHORITY BY THIS OFFICE WOULD APPEAR TO BE INCONSISTENT WITH THE STATUTORY AUTHORITY UNDER WHICH THE AUTHORITY MAY SUE AND BE SUED IN ITS CORPORATE NAME AND THE OTHER GENERAL POWERS GRANTED THE CORPORATION UNDER THE TENNESSEE VALLEY AUTHORITY ACT OF MAY 18, 1933, 48 STAT. 58, AS AMENDED, 16 U.S.C. 831 AND FOLLOWING SECTIONS. SEE PARTICULARLY, 16 U.S.C. 831H/B), WHICH IN PERTINENT PART PROVIDES "SUBJECT ONLY TO THE PROVISIONS OF THIS CHAPTER, THE CORPORATION IS AUTHORIZED TO MAKE SUCH EXPENDITURES AND TO ENTER INTO SUCH CONTRACTS, AGREEMENTS, AND ARRANGEMENTS, UPON SUCH TERMS AND CONDITIONS AND IN SUCH MANNER AS IT MAY DEEM NECESSARY, INCLUDING THE FINAL SETTLEMENT OF ALL CLAIMS AND LITIGATION BY OR AGAINST THE CORPORATION.' FURTHERMORE, IT HAS BEEN HELD THAT CLAIMS AGAINST FUNDS OF GOVERNMENT CORPORATIONS SUBJECT TO THE REGULATIONS UNDER THE GOVERNMENT CORPORATION CONTROL ACT, 27 COMP. GEN. 789, ARE NOT REQUIRED UNDER SUCH REGULATIONS TO BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR DIRECT SETTLEMENT. 27 COMP. GEN. 429. WHILE SUCH REGULATIONS WERE NOT INTENDED TO DEPRIVE ANY GOVERNMENT CORPORATION OF RECOURSE TO THIS OFFICE FOR THE PURPOSE OF OBTAINING DECISIONS CONCERNING THE PROPRIETY OF PAYMENT IN DOUBTFUL CASES, WHERE, AS HERE, THE CLAIM ALREADY HAS BEEN DENIED BY THE CORPORATION, THIS OFFICE PROPERLY COULD NOT UNDERTAKE TO REVIEW SUCH SETTLEMENT.