Liability of Panama Canal Commission for Certain Claims and Authority To Settle

The Administrator of the Panama Canal Commission requested an opinion on the Commission's liability for certain claims and its authority to settle and pay such claims. The Panama Canal Commission as the successor agency to the Canal Zone Government and the Panama Canal Company may assume liability for those claims that arose against both the Government and the Company prior to the effective date of the Panama Canal Treaty of 1977. The Commission also has settlement authority to adjust claims arising against the Government and the Company, if such authority had existed with them. Any claim arising against the Commission after October 1, 1979, must be administered pursuant to the Panama Canal Act of 1979.