[Title 32 CFR 536.60]
[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 536 - CLAIMS AGAINST THE UNITED STATES]
[Subpart B - Claims Arising From Activities of Military or Civilian]
[Sec. 536.60 - Maritime claims.]
[From the U.S. Government Printing Office]


32NATIONAL DEFENSE32002-07-012002-07-01false536.60Sec. 536.60NATIONAL DEFENSEDEPARTMENT OF THE ARMYCLAIMS AND ACCOUNTSCLAIMS AGAINST THE UNITED STATESClaims Arising From Activities of Military or Civilian
Sec. 536.60  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 is authorized by the Army 
Maritime Claims Settlement Act (10 U.S.C. 4801-04, 4806, as amended).
    (b) Related statutes. The Army Maritime Claims Settlement Act is 
supplemented by 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 Act of 1948 Extending the Admiralty and Maritime 
Jurisdiction (62 Stat. 496, 46 U.S.C. 740). Similar maritime claims 
settlement authority is exercised by the Department of the Navy under 10 
U.S.C. 7365, 7621-23 and by the Department of the Air Force under 10 
U.S.C. 9801-9804, 9806.
    (c) Scope. 10 U.S.C. 4802 provides for the settlement or compromise 
of claims for--
    (1) Damage caused by a vessel of, or in the service of, the DA or by 
other property under the jurisdiction of the DA;
    (2) Compensation for towage and salvage service, including contract 
salvage, rendered to a vessel of, or in the service of, the DA or to 
other property under the jurisdiction of the DA; or
    (3) Damage caused by a maritime tort committed by any agent or 
employee of the DA or by property under the jurisdiction of the DA.
    (d) Claims exceeding $500,000. Claims against the United States 
settled or compromised in a net amount exceeding $500,000 are not 
payable hereunder, but will be investigated and processed under this 
section, and, if approved by the Secretary of the Army, will be 
certified by him to Congress.
    (e) Claims not payable. A claim is not allowable under this section 
which:
    (1) Is for damage to, or loss or destruction of, property, or for 
personal injury or death, resulting directly or indirectly from action 
by the enemy, or by U.S. Armed Forces engaged in armed combat, or in 
immediate preparation for impending armed combat.
    (2) Is for personal injury or death of a member of the Armed Forces 
of the United States or a civilian employee incurred incident to his 
service.
    (3) Is for personal injury or death of a Government employee for 
whom benefits are provided by the FECA (5 U.S.C. 8101-8150).
    (4) Is for personal injury or death of an employee, including 
nonappropriated fund employees, for whom benefits are provided by the 
Longshoremen's and Harbor Workers' Compensation Act (44 Stat. 1424, 33 
U.S.C. 901).
    (5) Has been made the subject of a suit by or against the United 
States, except as provided in subparagraph (h)(2) of this section.
    (6) Arises in a foreign country and was considered by the 
authorities of a foreign country and final action taken thereon under 
Article VIII of the NATO Status of Forces Agreement, Article XVIII of 
the Treaty of Mutual Cooperation and Security between the United States 
and Japan regarding facilities and areas and the Status of United States 
Armed Forces in Japan, or other similar treaty or agreement, if 
reasonable disposition was made of the claim.
    (f) Claims under other laws and regulations. (1) Claims of military 
personnel and civilian employees of the DOD and the Army, including 
military and civilian officers and crews of Army vessels, for damage to 
or loss of personal property occurring incident to their service will be 
processed under the provisions of the Military Personnel and Civilian 
Employees' Claims Act (31 U.S.C. 3721).
    (2) Claims which are within the scope of this section and also 
within the scope of the FCA (10 U.S.C. 2734) may be processed under that 
statute when specific authority to do so has been obtained from the 
Commander, USARCS. The request for such authority should be accompanied 
by a copy of the report of the incident by the Marine Casualty

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Investigating Officer, or other claims investigator.
    (g) Subrogation. (1) An assurer will be recognized as a claimant 
under this section to the extent that it has become subrogated by 
payment to, or on behalf of, its assured, pursuant to a contract of 
insurance in force at the time of the incident from which the claim 
arose. An assurer and its assured may file a claim either jointly or 
separately. Joint claims must be asserted in the names of, and must be 
signed by, or on behalf of, all parties; payment then will be made 
jointly. If separate claims are filed, payment to each party will be 
limited to the extent of such party's undisputed interest.
    (2) For the purpose of determining authority to settle or compromise 
a claim, the payable interests of an assurer (or assurers) and the 
assured represent merely separable interests, which interests in the 
aggregate must not exceed the amount authorized for administrative 
settlement or compromise.
    (3) The policies set forth in paragraphs (g) (1) and (2) of this 
section with respect to subrogation arising from insurance contracts are 
applicable to all other types of subrogation.
    (h) Limitation of settlement. (1) The period for effecting an 
administrative settlement under the Army Maritime Claims Settlement Act 
is subject to the same limitation as that for beginning an action under 
the Suits in Admiralty Act; that is, a 2-year period from the date of 
the origin of the cause of action. The claimant must have agreed to 
accept the settlement, and it must be approved for payment by the 
Secretary of the Army or his designee prior to the end of such period; 
otherwise, thereafter the cause of action ceases to exist, except under 
the circumstances set forth in paragraph (h)(2) of this section. The 
presentation of a claim, or its consideration by the DA, neither waives 
nor extends the 2-year limitation period.
    (2) In the event that an action has been filed in a U.S. district 
court before the end of the 2-year statutory period, an administrative 
settlement may be negotiated by the Commander, USARCS, with the 
claimant, even though the 2-year period has elapsed since the cause of 
action accrued, provided the claimant obtains the written consent of the 
appropriate office of the Department of Justice charged with the defense 
of the complaint. Payment may be made upon dismissal of the complaint.
    (3) When a claim under this section, notice of damage, invitation to 
a damage survey, or other written notice of an intention to hold the 
United States liable is received, the receiving installation, office, or 
person immediately will forward such document to the Commander, USARCS. 
USARCS will promptly advise the claimant or potential claimant in 
writing of the comprehensive application of the time limit.
    (4) When a claim under this section for less than $10,000 is 
presented to a Corps of Engineers office and thus may be appropriate for 
action by the Corps of Engineers pursuant to the delegation of authority 
set forth in paragraph (i)(2) of this section, the receiving Corps of 
Engineers office will promptly advise the claimant in writing of the 
comprehensive application of the time limit (unless such has already 
been done by USARCS).
    (i) Delegation of authority. (1) Where the amount to be paid is not 
more than $10,000, claims under this section may be settled or 
compromised by the Commander, USARCS, chief of overseas command claims 
service, or his designee.
    (2) When a claim under this section arises from a civil works 
activity of the Corps of Engineers, engineer area claims offices are 
delegated authority to approve and pay in full, or in part, subject to 
the execution of an appropriate settlement agreement, claims presented 
for $10,000 or less, and compromise and pay claims regardless of the 
amount claimed, provided an award of $10,000 or less is accepted by the 
claimant in full satisfaction and final settlement of the claim, subject 
to such limitations as may be imposed by the Chief of Engineers. 
Meritorious claims arising from civil works activities of the Corps of 
Engineers will be paid from Corps of Engineers funds.

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