Claims for Damage to or Loss or Destruction of Army (DA)

[Title 32 CFR A]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 32 - NATIONAL DEFENSE]
[Chapter V - DEPARTMENT OF THE ARMY]
[Subchapter B - CLAIMS AND ACCOUNTS]
[Part 537 - CLAIMS ON BEHALF OF THE UNITED STATES]
[Subpart A - Claims for Damage to or Loss or Destruction of Army (DA)]
[From the U.S. Government Printing Office]

32NATIONAL DEFENSE32002-07-012002-07-01falseClaims for Damage to or Loss or Destruction of Army (DA)ASubpart ANATIONAL DEFENSEDEPARTMENT OF THE ARMYCLAIMS AND ACCOUNTSCLAIMS ON BEHALF OF THE UNITED STATES
Subpart A--Claims for Damage to or Loss or Destruction of Army (DA)
Property

Sec. 537.1 General.

(a) Purpose. This section prescribes, within the limitations
indicated in AR 27-20 (AR 27-20 and other Army Regulations referenced
herein are available thru: National Technical Information Services, U.S.
Department of Commerce, 5285 Port Royal Road, Springfield, VA 22161),
and in paragraph (b) of this section, the procedures for the
investigation, determination, assertion, and collection, including
compromise and termination of collection action, of claims in favor of
the United States for damage to or loss or destruction of Department of
the Army (DA) property.
(b) Applicability and scope. (1) Other regulations establish systems
of property accountability and responsibility; prescribe procedures for
the investigation of loss, damage, or destruction by causes other than
fair wear and tear in the service; and provide for the administrative
collection of charges against military and civilian personnel of the
United States, contractors and common carriers, and other individuals
and legal entities from whom collection may be made without litigation.
When the investigation so prescribed results in preliminary indication
of pecuniary liability, and no other method of collection is provided,
the matter is referred for action under this section. This relationship
exists with regard to--
(i) Property under the control of the DA.
(ii) Property of the Defense Logistics Agency in the custody of the
DA.
(iii) Property of nonappropriated funds of the DA (except Army and
Air Force Exchange Service property unless a special agreement exists).
See AR 215-1 and AR 215-2.
(iv) Federal property made available to the Army National Guard
(ARNG).
(2) This section does not apply to--
(i) Claims arising from marine casualties.
(ii) Claims for damage to property funded by civil functions
appropriations.
(iii) Claims for damage to property of the DA and Air Force Exchange
Service.
(iv) Reimbursements from agencies and instrumentalities of the
United States for damage to property.
(v) Collection for damage to property by offset against the pay of
employees of the United States, or against amounts owed by the United
States to common carriers, contractors, and States.
(vi) Claims by the United States against carriers, warehousemen,
insurers, and other third parties for amounts paid in settlement of
claims by members and employees of the Army, or the Department of
Defense (DOD), for loss, damage, or destruction of personal property
while in transit or storage at Government expense.
(3) The commander of a major overseas command, as defined in
paragraph (c)(5) of this section, is authorized to establish procedures
for the processing of claims in favor of the United States for loss,
damage, or destruction of property which may, to the extent deemed
necessary, modify the procedures prescribed herein. Two copies of all
implementing directives will be furnished Commander, U.S. Army Claims
Service (USARCS). Procedures will be prescribed--
(i) To carry out the provisions of DOD Directive No. 5515.8,
assigning single service claims responsibility.
(ii) To carry out provisions of treaties and other international
agreements which limit or provide special methods for the recovery of
claims in favor of the United States.
(c) Definitions. For the purpose of this section only, the following
terms have the meaning indicated:

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(1) Claim. The Government's right to compensation for damage caused
to Army property.
(2) Prospective defendant. An individual, partnership, association,
corporation, governmental body, or other legal entity, foreign or
domestic, except an instrumentality of the United States, against whom
the United States has a claim.
(3) Damage. A comprehensive term, including not only damage to, but
also loss or destruction of Army property.
(4) DA property. Real or personal property of the United States or
its instrumentalities and, if the United States is responsible therefor,
real or personal property of a foreign government, which is in the
possession or under the control of the DA, one of its instrumentalities,
or the ARNG, including that property of an activity for which the Army
has been designated the administrative agency, and that property located
in an area in which the Army has been assigned single service claims
responsibility by appropriate DOD directive.
(5) Major overseas command. U.S. Army Europe; U.S. Army Forces
Southern Command; Eighth U.S. Army, Korea; Western Command; and any
command outside the continental limits of the contiguous States
specially designated by The Judge Advocate General (TJAG) under the
provisions of AR 27-20.
(6) Area Claims Office. The principal office for the investigation,
assertion, adjudication and settlement of claims, staffed with qualified
legal personnel under the supervision of a Staff Judge Advocate (SJA) or
Command Judge Advocate or Corps of Engineers district or Command Legal
Counsel under provisions of AR 27-20.
(7) Recovery judge advocate (RJA). A JAGC officer or legal adviser
responsible for assertion and collection of claims in favor of the
United States for medical expenses and property damage.
(d) Limitation of time. The Act of July 18, 1966 (80 Stat. 304, 28
U.S.C. 2415) established a 3-year statute of limitations, effective July
19, 1966, upon actions in favor of the United States for money damages
founded upon a tort. In computing periods of time excluded under 28
U.S.C. 2416, the RJA concerned shall be deemed the official charged with
responsibility and will ensure that action may be brought in the name of
the United States within the limitation period.
(e) Foreign prospective defendants. Except as indicated below,
claims within the scope of this section against foreign prospective
defendants will be investigated, processed, and asserted without regard
to the nationality of the prospective defendant. Claims against an
international organization, a foreign government or a political
subdivision, agency, or instrumentality thereof, or against a member of
the armed forces or an official or civilian employee of such
international organization or foreign government, will not be asserted
without prior approval of TJAG. Investigation and report thereof,
together with recommendations regarding assertion and enforcement, will
be forwarded through command channels to Commander, USARCS, unless the
provisions of applicable agreements, or regulations in implementation
thereof, negate the requirement for such investigation and report.
(f) Standards of liability. (1) The Government's right to
compensation for damage caused to Army property will be determined in
accordance with the law of the place in which the damage occurred,
unless other law may properly be applied under conflict of law rules.
(2) To the extent that the prospective defendant's liability is
covered by insurance, liability will be determined without regard to
standards of pecuniary liability set forth in other regulations. If no
insurance is available, claims will be asserted under this section
against military and civilian employees of the United States and of host
foreign governments only where necessary to complete the collection of
charges imposed upon such persons under the standards established by
other regulations.
(g) Concurrent claims under other regulations. (1) Claims for damage
to DA property and claims for medical care cognizable under Secs. 537.21
through 537.24 arising from the same incident will be processed under
the sections applicable to each.

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(2) If the incident giving rise to a claim in favor of the United
States also gives rise to a potential claim or suit against the United
States, the claim in favor of the Government will be asserted and
otherwise processed only by an RJA who has apparent authority to take
final action on the claim against the Government.
(h) Repayment in kind. The RJA who asserts a claim under this
section may accept, in lieu of full payment of the claim, the
restoration of the property to its condition prior to the incident
causing the damage, or the replacement thereof. Acceptability of these
methods of repayment is conditioned upon the certification of the
appropriate staff officer responsible for maintenance, such as is
described for motor vehicles in AR 735-5, before a release may be
executed. The authority conferred by this paragraph is not limited to
incidents involving motor vehicles.
(i) Delegation of authority. Subject to the provisions of paragraph
(k) of this section, the authority conferred by AR 27-20, to compromise
claims and to terminate collection action, with respect to claims that
do not exceed $20,000, exclusive of interest, penalties and
administrative fees, is further delegated as follows:
(1) An Area Claims Office, as defined in paragraph (c)(6) of this
section, is authorized to:
(i) Compromise claims, provided the compromise does not reduce the
claim by more than $10,000.
(ii) Terminate collection action, provided the uncollected amount of
claim does not exceed $10,000.
(2) The SJA, or if so designated, the chief of the Command Claims
Service of a major overseas command, as defined in paragraph (c)(5) of
this section, is authorized to:
(i) Compromise claims, not over $20,000 without monetary
limitations.
(ii) Terminate collection action, provided the uncollected amount of
the claim does not exceed $20,000.
(j) Compromise and termination of collection action. (1) The
authority delegated in paragraph (j) of this section to compromise
claims will be exercised in accordance with the standards set forth in 4
CFR part 104.
(2) The authority delegated in paragraph (j) of this section to
terminate collection action will be exercised in accordance with the
standards set forth in 4 CFR part 104.
(3) A debtor's liability to the United States arising from a
particular incident shall be considered as a single claim in determining
whether the claim is not more than $20,000, exclusive of interest,
penalties and administrative fees for the purpose of compromise, or
termination of collection action.
(4) Only the Department of Justice may approve claims involving:
(i) Compromise or waiver of a claim asserted for more than $20,000
exclusive of interest, penalties and administrative fees.
(ii) Settlement actions previously referred to the Department.
(iii) Settlement where a third party files suit against the United
States or the individual federal tortfeaser arising but of the same
incident.
(k) Releases. The RJA who receives payment of the claim in full, or
who receives full satisfaction of an approved compromise settlement, is
authorized to execute a release. A standard form furnished by the
prospective defendant or his insurer may be executed, provided no
indemnity agreement is included.
(l) Receipts. The RJA may execute and deliver to a prospective
defendant a receipt for payment in full, installment payment or an
offered compromise payment, subject to approval of the SJA. DA Form
2135-R (Receipt for Payment for Damage to or Loss of Government
Property) be used.

Sec. 537.2 Recovery of property unlawfully detained by civilians.

Whenever information is received that any property belonging to the
military service of the United States is unlawfully in the possession of
any person not in the military service, the procedures contained in AR
735-11, Para. 3-15, Unit Supply UPDATE 10, should be followed.

Sec. 537.6 Maritime casualties; claims in favor of the United States.

See 32 CFR 536.60, which covers claims on behalf of the United
States

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as well as claims against the United States.

Sec. 537.7 Maritime claims.

(a) Statutory authority. Administrative settlement or compromise of
admiralty and maritime claims in favor of and against the United States
by the Secretary of the Army or his designee, under the direction of the
Secretary of Defense, is authorized by Army Maritime Claims Settlement
Act of 1956 (70A Stat. 270), as amended (10 U.S.C. 4801-4804, 4806).
(b) Related statutes. This statute authorizes the administrative
settlement or compromise of maritime claims and supplements the
following statutes under which suits in admiralty may be brought; the
Suits in Admiralty Act of 1920 (41 Stat. 525, 46 U.S.C. 741-752); the
Public Vessels Act of 1925 (43 Stat. 1112, 46 U.S.C. 781-790); the
Extention of the Admiralty Act of 1948 (62 Stat. 496, 46 U.S.C. 740).
Similar maritime claims settlement authority is exercised by the
Department of the Navy under title 10, United States Code (U.S.C.),
sections 7365, 7621-7623, and by the Department of the Air Force under
10 U.S.C. 9801 through 9804, 9806.
(c) Scope. (1) Section 4803 of title 10, U.S.C., provides for the
settlement or compromise of claims of a kind that are within the
admiralty jurisdiction of a district court of the United States and of
claims for damage caused by a vessel or floating object to property
under the jurisdiction of the DA or property for which the Department
has assumed an obligation to respond in damages, where the net amount
payable to the United States does not exceed $500,000.
(2) Section 4804 of title 10, U.S.C., for the settlement or
compromise of claims in any amount for salvage services (including
contract salvage and towage) performed by the DA for any vessel. The
amounts of claims for salvage services are based upon per diem rates for
the use of salvage vessels and other equipment; and materials and
equipment damaged or lost during the salvage operation. The sum claimed
is intended to compensate the United States for operational costs only,
reserving, however, the right of the Government to assert a claim on a
salvage bonus basis, in accordance with commercial practice, in an
appropriate case.
(d) Amounts exceeding $500,000. Maritime claims in favor of the
United States, except claims for salvage services, may not be settled or
compromised under this section at a net amount exceeding $500,000
payable to the United States. However, all such claims otherwise within
the scope of this section will be investigated and reported to the
Commander, USARCS.
(e) Civil works activities. Rights of the United States to fines,
penalties, forfeitures, or other special remedies in connection with the
protection of navigable waters, the control and improvement of rivers
and harbors, flood control, and other functions of the Corps of
Engineers involving civil works activities, are not dealt with in this
section. However, claims for money damages which are civil in nature,
arising out of civil works activities of the Corps of Engineers and
otherwise under this section, for which an adequate remedy is not
available to the Chief of Engineers, may be processed under this
section.
(f) Delegation of authority. Where the amount to be received by the
United States is not more than $10,000, claims under this section,
except claims for salvage services, paragraph (c)(2) of this section,
may be settled or compromised by the Commander, USARCS, or designee,
subject to such limitations as may be imposed by the Commander, USARCS
and by engineer area claims offices, subject to such limitations as may
be imposed by the Chief of Engineers.
(g) Demands. Demand for the payment of claims in favor of the United
States under this section may be made by the Commander, USARCS, or
designee.