[Federal Register Volume 80, Number 108 (Friday, June 5, 2015)]
[Rules and Regulations]
[Pages 31998-32000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13782]


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DEPARTMENT OF JUSTICE

28 CFR Part 0

[Directive No. 1-15]


Redelegation of Authority to Deputy Assistant Attorneys General, 
Branch Directors, Heads of Offices, and United States Attorneys in 
Civil Division Cases

AGENCY: Office of the Assistant Attorney General, Civil Division, 
Department of Justice.

ACTION: Final rule.

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SUMMARY: This final rule amends Civil Directive 1-10, which sets forth 
the redelegation of authority by the Assistant Attorney General of the 
Civil Division to deputy assistant attorneys general, branch directors, 
heads of offices, and United States Attorneys. On May 21, 2015, the 
Attorney General signed Order No. 3532-2015 increasing the monetary 
thresholds for the authority of Assistant Attorneys General to 
compromise or close civil claims, and increasing the redelegation 
authority to the United States Attorneys with respect to accepting 
offers of compromise for affirmative claims. Pursuant to the Attorney 
General's order, the new rule increases the redelegated authority to 
Branch Directors, heads of offices, and United States Attorneys to 
close or compromise affirmative claims. Additionally, the new rule 
redelegates to United States Attorneys, directors, and attorneys-in-
charge the authority to issue compulsory process, and makes a few 
``housekeeping'' revisions.

DATES: Effective Date: This rule is effective June 5, 2015, and is 
applicable beginning May 29, 2015.

FOR FURTHER INFORMATION CONTACT: Joyce R. Branda, Deputy Assistant 
Attorney General, Commercial Litigation Branch, Civil Division, 
Department of Justice, Washington, DC 20530; 202-307-0231.

SUPPLEMENTARY INFORMATION: This rule is a matter of internal Department 
management. It has been drafted and reviewed in accordance with section 
1(b) of Executive Order 12866. The Assistant Attorney General for the 
Civil Division has determined that this rule is not a ``significant 
regulatory action'' under section 3(f) of Executive Order 12866 and 
accordingly this rule has not been reviewed by the Office of Management 
and Budget. In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), the Assistant Attorney General for the Civil Division has 
reviewed this rule, and by approving it certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities. This rule will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

List of Subjects in 28 CFR Part 0

    Authority delegations (Government agencies), Government employees, 
Organization and functions (Government agencies), Privacy, Reporting 
and recordkeeping requirements, Whistleblowing.

    Accordingly, for the reasons stated in the preamble, title 28, 
chapter I, part 0, of the Code of Federal Regulations is amended as set 
forth below:

PART 0--ORGANIZATION OF THE DEPARTMENT OF JUSTICE

0
1. The authority citation for part 0 continues to read as follows:

    Authority: 5 U.S.C. 301; 28 U.S.C. 509, 510, 515-519.


0
2. Appendix to Subpart Y is amended by removing Civil Directive No. 1-
10 and adding in its place Civil Directive No. 1-15, to read as 
follows:

Appendix to Subpart Y of Part 0--Redelegations of Authority to 
Compromise and Close Civil Claims

* * * * *

[Directive No. 1-15]

    By virtue of the authority vested in me by part 0 of title 28 of 
the Code of Federal Regulations, particularly Sec. Sec.  0.45, 
0.160, 0.164, and 0.168, it is hereby ordered as follows:

Section 1. Scope of Delegation Authority

    (a) Delegation to Deputy Assistant Attorneys General. The Deputy 
Assistant Attorneys General are hereby delegated all the power and 
authority of the Assistant Attorney General in charge of the Civil 
Division, including with respect to the institution of suits, the 
acceptance or rejection of compromise offers, the administrative 
settlement of claims, and the closing of claims or cases, unless any 
such authority or power is required by law to be exercised by the 
Assistant Attorney General personally or has been specifically 
delegated to another Department official.
    (b) Delegation to United States Attorneys; Branch, Office and 
Staff Directors; and Attorneys-in-Charge of Field Offices. Subject 
to the limitations imposed by 28 CFR 0.160(d) and 0.164, and 
sections 1(e) and 4(b) of this directive, and the authority of the 
Solicitor General set forth in 28 CFR 0.163, United States 
Attorneys; Branch, Office, and Staff Directors; and Attorneys-in-
Charge of Field Offices, with respect to matters assigned or 
delegated to their respective components, are hereby delegated the 
authority to:
    (1) Accept offers in compromise of claims asserted by the United 
States in all cases in which the gross amount of the original claim 
does not exceed $10,000,000;
    (2) Accept offers in compromise of, or settle administratively, 
claims against the United States in all cases in which the principal 
amount of the proposed settlement does not exceed $1,000,000;
    (3) Reject any offers in compromise; and
    (4) Close any affirmative claim or case where the gross amount 
of the original claim does not exceed $10,000,000.
    (c) Subject to the limitations imposed by sections 1(e), 4(b), 
and 5 of this directive, United States Attorneys, Directors, and 
Attorneys-in-Charge are hereby delegated the authority to:
    (1) File suits, counterclaims, and cross-claims, or take any 
other action necessary to protect the interests of the United States 
in all routine nonmonetary cases, in all routine loan collection and 
foreclosure cases, and in other monetary claims or cases where the 
gross amount of the original claim does not exceed $10,000,000. Such 
actions in nonmonetary cases which are other than routine will be 
submitted for the approval of the Assistant Attorney General, Civil 
Division; and,
    (2) Issue subpoenas, civil investigative demands, and any other 
compulsory process.
    (d) United States Attorneys may redelegate in writing the above-
conferred compromise and suit authority to Assistant United States 
Attorneys who supervise other Assistant United States Attorneys who 
handle civil litigation.
    (e) Limitations on delegations.
    (1) The authority to compromise cases, settle claims 
administratively, file suits, counterclaims, and cross-claims, to 
close claims or cases, or take any other action necessary to protect 
the interests of the United States, delegated by paragraphs (a), 
(b), and (c) of this section, may not be exercised, and the matter 
shall be submitted for resolution to the Assistant Attorney General, 
Civil Division, when:
    (i) For any reason, the proposed action, as a practical matter, 
will control or adversely influence the disposition of other claims 
totaling more than the respective amounts designated in the above 
paragraphs.

[[Page 31999]]

    (ii) Because a novel question of law or a question of policy is 
presented, or for any other reason, the proposed action should, in 
the opinion of the officer or employee concerned, receive the 
personal attention of the Assistant Attorney General, Civil 
Division.
    (iii) The agency or agencies involved are opposed to the 
proposed action. The views of an agency must be solicited with 
respect to any significant proposed action if it is a party, if it 
has asked to be consulted with respect to any such proposed action, 
or if such proposed action in a case would adversely affect any of 
its policies.
    (iv) The United States Attorney involved is opposed to the 
proposed action and requests that the matter be submitted to the 
Assistant Attorney General for decision.
    (v) The case is on appeal, except as determined by the Director 
of the Appellate Staff.
    (2) In fraud or False Claims Act cases and matters, for reasons 
similar to those listed in sub-section l(e)(l)(i) through 
l(e)(l)(iii) above, the Director of the Fraud Section of the 
Commercial Litigation Branch, after consultation with the United 
States Attorney, may determine that a case or matter will not be 
delegated to the United States Attorney, but personally or jointly 
handled, or monitored, by the Civil Division.

Section 2. Action Memoranda

    (a) Whenever, pursuant to the authority delegated by this 
Directive, an official of the Civil Division or a United States 
Attorney accepts a compromise, closes a claim or files a suit or 
claim, a memorandum fully explaining the basis for the action taken 
shall be executed and placed in the file. In the case of matters 
compromised, closed, or filed by United States Attorneys, a copy of 
the memorandum must, upon request therefrom, be sent to the 
appropriate Branch or Office of the Civil Division.
    (b) The compromising of cases or closing of claims or the filing 
of suits for claims, which a United States Attorney is not 
authorized to approve, shall be referred to the appropriate Branch 
or Office within the Civil Division, for decision by the Assistant 
Attorney General or the appropriate authorized person within the 
Civil Division. The referral memorandum should contain a detailed 
description of the matter, the United States Attorney's 
recommendation, the agency's recommendation where applicable, and a 
full statement of the reasons therefor.

Section 3. Return of Civil Judgment Cases to Agencies

    Claims arising out of judgments in favor of the United States 
which cannot be permanently closed as uncollectible may be returned 
to the referring Federal agency for servicing and surveillance 
whenever all conditions set forth in USAM 4-3.230 have been met.

Section 4. Authority for Direct Reference and Delegation of Civil 
Division Cases to United States Attorneys

    (a) Direct reference to United States Attorneys by agencies. The 
following civil actions under the jurisdiction of the Assistant 
Attorney General, Civil Division, may be referred by the agency 
concerned directly to the appropriate United States Attorney for 
handling in trial courts, subject to the limitations imposed by 
paragraph (b) of this section. United States Attorneys are hereby 
delegated the authority to take all necessary steps to protect the 
interests of the United States, without prior approval of the 
Assistant Attorney General, Civil Division, or his representatives, 
subject to the limitations set forth in section 1(e) of this 
directive. Agencies may, however, if special handling is desired, 
refer these cases to the Civil Division. Also, when constitutional 
questions or other significant issues arise in the course of such 
litigation, or when an appeal is taken by any party, the Civil 
Division should be consulted.
    (1) Money claims by the United States where the gross amount of 
the original claim does not exceed $10,000,000.
    (2) Single family dwelling house foreclosures arising out of 
loans made or insured by the Department of Housing and Urban 
Development, the Department of Veterans Affairs, or the Farm Service 
Agency.
    (3) Suits to enjoin violations of, or to collect penalties 
under, the Agricultural Adjustment Act of 1938, 7 U.S.C. 1376; the 
Packers and Stockyards Act, 7 U.S.C. 203, 207(g), 213, 215, 216, 
222, and 228a; the Perishable Agricultural Commodities Act, 1930, 7 
U.S.C. 499c(a) and 499h(d); the Egg Products Inspection Act, 21 
U.S.C. 1031 et seq.; the Potato Research and Promotion Act, 7 U.S.C. 
2611 et seq.; the Cotton Research and Promotion Act of 1966, 7 
U.S.C. 2101 et seq.; the Federal Meat Inspection Act, 21 U.S.C. 601 
et seq.; and the Agricultural Marketing Agreement Act of 1937, as 
amended, 7 U.S.C. 601 et seq.
    (4) Suits by social security beneficiaries under the Social 
Security Act, 42 U.S.C. 402 et seq.
    (5) Social Security disability suits under 42 U.S.C. 423 et seq.
    (6) Black lung beneficiary suits under the Federal Coal Mine 
Health and Safety Act of 1969, 30 U.S.C. 921 et seq.
    (7) Suits by Medicare beneficiaries under 42 U.S.C. 1395ff.
    (8) Garnishment actions authorized by 42 U.S.C. 659 for child 
support or alimony payments and actions for general debt, 5 U.S.C. 
5520a.
    (9) Judicial review of actions of the Secretary of Agriculture 
under the food stamp program, pursuant to the provisions of 7 U.S.C. 
2022 involving retail food stores.
    (10) Cases referred by the Department of Labor for the 
collection of penalties or for injunctive action under the Fair 
Labor Standards Act of 1938 and the Occupational Safety and Health 
Act of 1970.
    (11) Cases referred by the Department of Labor solely for the 
collection of civil penalties under the Farm Labor Contractor 
Registration Act of 1963, 7 U.S.C. 2048(b).
    (12) Cases referred by the Surface Transportation Board to 
enforce orders of the Surface Transportation Board or to enjoin or 
suspend such orders pursuant to 28 U.S.C. 1336.
    (13) Cases referred by the United States Postal Service for 
injunctive relief under the nonmailable matter laws, 39 U.S.C. 3001 
et seq.
    (b) Cases not covered. Regardless of the amount in controversy 
(unless otherwise specified), the following matters normally will 
not be delegated to United States Attorneys for handling but will be 
personally or jointly handled or monitored by the appropriate Branch 
or Office within the Civil Division:
    (1) Cases in the Court of Federal Claims.
    (2) Cases within the jurisdiction of the Commercial Litigation 
Branch involving patents, trademarks, copyrights, etc.
    (3) Cases before the United States Court of International Trade.
    (4) Any case involving bribery, conflict of interest, breach of 
fiduciary duty, breach of employment contract, or exploitation of 
public office.
    (5) Any case involving vessel-caused pollution in navigable 
waters.
    (6) Cases on appeal, except as determined by the Director of the 
Appellate Staff.
    (7) Any case involving litigation in a foreign court.
    (8) Criminal proceedings arising under statutes enforced by the 
Food and Drug Administration, the Consumer Product Safety 
Commission, the Federal Trade Commission, and the National Highway 
Traffic Safety Administration (relating to odometer tampering), 
except as determined by the Director of the Consumer Protection 
Branch.
    (9) Nonmonetary civil cases, including injunction suits, 
declaratory judgment actions, and applications for inspection 
warrants, and cases seeking civil penalties where the gross amount 
of the original claim exceeds $10,000,000.
    (10) Cases arising under the statutes listed in 28 CFR 0.45(j), 
except as determined by the Director of the Consumer Protection 
Branch.
    (11) Administrative claims arising under the Federal Tort Claims 
Act.

Section 5. Civil Investigative Demands

    Authority relating to Civil Investigative Demands issued under 
the False Claims Act is hereby delegated to United States Attorneys 
in cases that are delegated or assigned as monitored to their 
respective components. In accordance with guidelines provided by the 
Assistant Attorney General, each United States Attorney must provide 
notice and a report of Civil Investigative Demands issued by the 
United States Attorney. Authority relating to Civil Investigative 
Demands issued under the False Claims Act in cases that are jointly 
or personally handled by the Civil Division is hereby delegated to 
the Director of the Fraud Section of the Commercial Litigation 
Branch. When a case is jointly handled by the Civil Division and a 
United States Attorney's Office, the Director of the Fraud Section 
will issue a Civil Investigative Demand only after requesting the 
United States Attorney's recommendation.

Section 6. Adverse Decisions

    All final judicial decisions adverse to the Government, other 
than bankruptcy court decisions except as provided herein, involving 
any direct reference or delegated case must be reported promptly to 
the Assistant Attorney General, Civil Division,

[[Page 32000]]

attention Director, Appellate Staff. Consult title 2 of the United 
States Attorney's Manual for procedures and time limitations. An 
appeal of such a decision, as well as an appeal of an adverse 
decision by a district court or bankruptcy appellate panel reviewing 
a bankruptcy court decision or a direct appeal of an adverse 
bankruptcy court decision to a court of appeals, cannot be taken 
without approval of the Solicitor General. Until the Solicitor 
General has made a decision whether an appeal will be taken, the 
Government attorney handling the case must take all necessary 
procedural actions to preserve the Government's right to take an 
appeal, including filing a protective notice of appeal when the time 
to file a notice of appeal is about to expire and the Solicitor 
General has not yet made a decision. Nothing in the foregoing 
directive affects this obligation.

Section 7. Definitions

    (a) For purposes of this directive, in the case of claims 
involving only civil penalties, other than claims defined in 28 CFR 
0.169(b), the phrase ``gross amount of the original claim'' shall 
mean the maximum amount of penalties sought.
    (b) For purposes of this directive, in the case of claims 
asserted in bankruptcy proceedings, the phrase ``gross amount of the 
original claim'' shall mean liquidation value. Liquidation value is 
the forced sale value of the collateral, if any, securing the 
claim(s) plus the dividend likely to be paid for the unsecured 
portion of the claim(s) in an actual or hypothetical liquidation of 
the bankruptcy estate.

Section 8. Supersession

    This directive supersedes Civil Division Directive No. 1-10 
regarding redelegation of the Assistant Attorney General's authority 
in Civil Division cases to Branch Directors, heads of offices, and 
United States Attorneys.

Section 9. Applicability

    This directive applies to all cases pending as of the date of 
this directive and is effective immediately.

Section 10. No Private Right of Action

    This directive consists of rules of agency organization, 
procedure, and practice and does not create a private right of 
action for any private party to challenge the rules or actions taken 
pursuant to them.
* * * * *

    Dated: June 1, 2015.
Benjamin C. Mizer,
Principal Deputy Assistant Attorney General, Civil Division.
[FR Doc. 2015-13782 Filed 6-4-15; 8:45 am]
 BILLING CODE 4410-12-P