[Title 32 CFR 752]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 32 - NATIONAL DEFENSE]
[Subtitle A - Department of Defense (Continued)]
[Chapter Vi - DEPARTMENT OF THE NAVY]
[Subchapter E - CLAIMS]
[Part 752 - ADMIRALTY CLAIMS]
[From the U.S. Government Printing Office]
32NATIONAL DEFENSE52002-07-012002-07-01falseADMIRALTY CLAIMS752PART 752NATIONAL DEFENSEDepartment of Defense (Continued)DEPARTMENT OF THE NAVYCLAIMS
PART 752--ADMIRALTY CLAIMS--Table of Contents
Sec.
752.1 Scope.
752.2 Organization.
752.3 Claims against the Navy.
752.4 Affirmative claims.
752.5 Salvage.
Authority: 5 U.S.C. 301; 10 U.S.C. 5013, 5148, and 7621-7623; 32 CFR
700.206 and 700-1202.
Sec. 752.1 Scope.
This part applies to admiralty-tort claims. These include claims
against the United States for damage caused by a vessel in the naval
service or by other property under the jurisdiction of the Navy, or
damage caused by a maritime tort committed by an agent or employee of
the Navy, and affirmative claims by the United States for damage caused
by a vessel or floating object to Navy property.
[39 FR 9962, Mar. 15, 1974
Sec. 752.2 Organization.
(a) Administrative authority of the Secretary of the Navy. The
Secretary of the Navy has administrative authority for settlement and
direct payment where the amount paid does not exceed $1,000,000 and
where the matter is not in litigation, of claims for damage caused by
naval vessels or by other property under the jurisdiction of the Navy,
or damage caused by a maritime tort committed by an agent or employee of
the Navy, and for towage or salvage services rendered to naval vessels
(10 U.S.C. 7622 (1994)). The Secretary also has authority to settle
affirmative admiralty claims for damage caused by a vessel or floating
object to property under the jurisdiction of the Navy (10 U.S.C. 7623
(1994)).
(b) Admiralty and Maritime Law Division of the Office of the Judge
Advocate General. The Navy's admiralty-tort claims are processed and
adjudicated in the Admiralty and Maritime Law Division of the Office of
the Judge Advocate General. All correspondence with the Admiralty and
Maritime Law Division should be addressed to the Office of the Judge
Advocate General (Code 11), 1322 Patterson Avenue SE, Suite 3000,
Washington Navy Yard, DC 20374-5066.
(c) Mission and policy. The primary mission of the Admiralty and
Maritime Law Division is to effect prompt and equitable settlements of
admiralty claims, both against and in favor of the United States. The
settlement procedure has evolved to eliminate the expenses and delays
arising out of litigation and to obtain results advantageous to the
financial interests of the United States. Where settlements
[[Page 437]]
cannot be made, litigation ensues in the Federal Courts. The final test
of whether a settlement is justified is the probable result of
litigation. Settlements are therefore considered and determined by the
probable results of litigation. The policy of the Navy is to effect fair
and prompt settlements of admiralty claims wherever legal liability
exists.
(d) Admiralty-tort claims. As indicated above, the Admiralty and
Maritime Law Division primarily handles admiralty-tort claims. These are
claims for damage caused by vessels in the naval service or by other
property under the jurisdiction of the Navy, or damage caused by a
maritime tort committed by an agent or employee of the Navy, and claims
for damage caused by a privately owned vessel to a vessel or property of
the Navy (affirmative claims). The Admiralty and Maritime Law Division
also handles claims for towage and salvage services rendered to a vessel
in the naval service.
(e) Admiralty-contract claims. Admiralty-contract claims arising out
of the operations of the Military Sealift Command (MSC) are handled by
its Office of Counsel. MSC is responsible for the procurement of vessels
and space for the commercial ocean transportation of Department of
Defense cargo, mail, and personnel. It is also responsible for the
maintenance, repair, and alteration of Government-owned vessels assigned
to it. The Office of Counsel, MSC, deals with the various claims of a
contract nature which arise out of these operations. These include
claims for cargo damage, charter hire, redelivery, general average, and
claims arising under MSC ship-repair contracts.
(f) Damage caused by Navy contract stevedores. Office of Counsel,
Naval Supply Systems Command, has cognizance of admiralty claims for
damage caused by Navy contract stevedores. Under these stevedore
contracts, the stevedoring companies are responsible for negligent acts
of their employees which result in vessel damage. It is important that
the extent of any such damage be accurately determined and promptly
reported to the contracting officer having cognizance of the particular
stevedore contract involved.
(g) Resolving conflicts. Admiralty-tort claims, such as collision,
personal-injury, and death claims, are dealt with by the Admiralty and
Maritime Law Division, irrespective of whether an MSC vessel or other
naval vessel is involved. Whether any particular claim is to be handled
by JAG or by MSC, therefore, is determined by the nature of the claim.
Cases may arise which could be handled by either office. If doubt
exists, such matters should be reported both to JAG and to MSC. An
agreement will then be reached between the Admiralty and Maritime Law
Division and the Office of Counsel, MSC, as to how the incident should
be handled.
[39 FR 9962, Mar. 15, 1974, as amended at 55 FR 12173, Apr. 2, 1990; 65
FR 60861, 60862, Oct. 13, 2000]
Sec. 752.3 Claims against the Navy.
(a) Settlement authority. 10 U.S.C. 7622 (1994) provides settlement
authority for ``(1) Damage caused by a vessel in the naval service or by
other property under the jurisdiction of the Department of the Navy; (2)
compensation for towage or salvage service, including contract salvage,
rendered to a vessel in the naval service or to other property of the
Navy; or (3) damage caused by a maritime tort committed by any agent or
employee of the Department of the Navy or by property under the
jurisdiction of the Department of the Navy.'' The limit on the
Secretary's settlement authority is payment of $1,000,000. A claim which
is settled for an amount over $1,000,000 is certified to Congress for
payment. Section 7622 provides that the Secretary may delegate his
settlement authority in matters where the amount to be paid is not over
$100,000. Under the Secretary's delegation, settlements not exceeding
$100,000 may be effected by the Judge Advocate General, Deputy Judge
Advocate General, Assistant Judge Advocate General (General Law), and
the Deputy Assistant Judge Advocate General (Admiralty and Maritime
Law). Authority has also been delegated to Deputy Commander in Chief,
U.S. Naval Forces, Europe, and to Commander Sixth Fleet, to pay
admiralty claims against the Navy not exceeding $10,000, and to
[[Page 438]]
(b) Settlement is final. The legislation specifically authorizes the
Secretary to settle, compromise, and pay claims. The settlement, upon
acceptance of payment by the claimant, is final and conclusive for all
purposes.
(c) Settlement procedures. Where the amount paid is over $100,000,
after agreement is reached with counsel or claimants, the procedure is
to prepare a settlement recommendation for the approval of the Secretary
of the Navy. When settlement has been approved, the voucher required for
effecting payment is prepared. The settlement check is then exchanged,
in keeping with the commercial practice, for an executed release. In
some situations, where the exchange of documents is impracticable, a
claimant is requested to forward the executed release by mail, on the
understanding that the release does not become effective until the check
is received in payment. Claims settled under 10 U.S.C. 7622 are paid out
of annual Department of Defense appropriations.
(d) Limitation period. The Secretary's settlement authorization is
subject to a two-year limitation. This limitation is not extended by the
filing of claim nor by negotiations or correspondence. A settlement
agreement must be reached before the end of the two-year period. If
settlement is not accomplished, then the claimant must file suit under
the appropriate statute to avoid the limitation bar. The agreement
reached in negotiations must receive the approval of the Secretary of
the Navy or his designee, depending on the amount involved, prior to the
expiration of the two-year period.
(e) Matters in litigation. When suit is filed, the matter comes
within the cognizance of the Department of Justice, and the Secretary of
the Navy is no longer able to entertain a claim or to make
administrative settlement.
[39 FR 9962, Mar. 15, 1974, as amended at 55 FR 12173, Apr. 2, 1990; 65
FR 60861, 60862, Oct. 13, 2000]
Sec. 752.4 Affirmative claims.
(a) Settlement authority. The Navy has the same authority to settle
affirmative admiralty claims as it does claims against the Navy. The
statute conferring this authorization is codified in 10 U.S.C. 7623
(1994), and is the reciprocal of 10 U.S.C. 7622 (1994) referred to in
Sec. 752.3.
(b) Scope. 10 U.S.C. 7623 is a tort claims-settlement statute. It is
not limited to affirmative claims arising out of collision, but embraces
all instances of damage caused by a vessel or floating object to
property of the United States under the jurisdiction of the Department
of the Navy. Perhaps the most frequent instance is where a privately
owned vessel damages a Navy pier or shore structure. To eliminate any
issue of whether the damaging instrumentality was a vessel, the words
``or floating object'' were included.
(c) Statute of limitation. The United States is subject to a three-
year statute of limitation when it asserts an affirmative claim for
money damages grounded in tort. This limitation is subject to the usual
exclusions, such as inability to prosecute due to war, unavailability of
the ``res'' or defendant, and certain exemptions from legal process (28
U.S.C. 2415, 2416 (1994)).
(d) Litigation. 10 U.S.C. 7623 does not apply to any claim where
suit is filed. If the Admiralty and Maritime Law Division is unable to
effect settlement, the matter is referred to the Department of Justice
for the filing of a complaint against the offending party. Thereafter,
as in the case of adverse litigated claims, the Navy has no further
authority to effect settlement.
[39 FR 9962, Mar. 15, 1974, as amended at 55 FR 12174, Apr. 2, 1990; 65
FR 60861, Oct. 13, 2000]
Sec. 752.5 Salvage.
(a) Scope. This section relates to salvage claims against or by the
Navy for compensation for towage and salvage services, including
contract salvage, rendered to a vessel in the naval service or to other
property under the jurisdiction of the Department of the Navy, or for
salvage services rendered by the Department of the Navy. Suits for
salvage may be maintained under the Public Vessels Act, and salvage
claims are within the Secretary of the Navy's administrative-settlement
authority under 10 U.S.C. 7622. Salvage claims against the Navy are
reported to and processed by the Judge Advocate General (Admiralty and
Maritime
[[Page 439]]
Law Division). Both claims and suits for salvage against the United
States are subject to the two-year limitation of the Public Vessels Act
and the Navy's settlement authority.
(b) Affirmative claims. Authorization for the settlement of
affirmative salvage claims is contained in 10 U.S.C. 7365 (1994).
Assertion of such claims is handled in the first instance by the
Assistant Supervisor of Salvage (Admiralty), USN, Naval Sea Systems
Command (SEA OOCL), 2531 Jefferson Davis Highway, NC/3 Room 11E54,
Arlington, VA 22242-5160. Salvage claims are referred to the Admiralty
Division only if the Assistant Supervisor of Salvage (Admiralty) is
unsuccessful in making collection. Any money received in settlement of
affirmative salvage claims is credited to appropriations for maintaining
salvage facilities by the Navy, pursuant to 10 U.S.C. 7367 (1994).
[39 FR 9962, Mar. 15, 1974, as amended at 41 FR 26866, June 30, 1976; 55
FR 12174, Apr. 2, 1990; 65 FR 60861, 60862, Oct. 13, 2000]