§ 752.3 32 CFR Ch. VI (7–1–12 Edition)

claims, both against and in favor of the which result in vessel damage. It is im- United States. The settlement proce- portant that the extent of any such dure has evolved to eliminate the ex- damage be accurately determined and penses and delays arising out of litiga- promptly reported to the contracting tion and to obtain results advan- officer having cognizance of the par- tageous to the financial interests of ticular stevedore contract involved. the United States. Where settlements (g) Resolving conflicts. Admiralty-tort cannot be made, litigation ensues in claims, such as collision, personal-in- the Federal Courts. The final test of jury, and death claims, are dealt with whether a settlement is justified is the by the Admiralty and Maritime Law probable result of litigation. Settle- , irrespective of whether an ments are therefore considered and de- MSC vessel or other naval vessel is in- termined by the probable results of volved. Whether any particular claim litigation. The policy of the Navy is to is to be handled by JAG or by MSC, effect fair and prompt settlements of therefore, is determined by the nature admiralty claims wherever legal liabil- of the claim. Cases may arise which ity exists. could be handled by either office. If (d) Admiralty-tort claims. As indicated doubt exists, such matters should be above, the Admiralty and Maritime reported both to JAG and to MSC. An Law Division primarily handles admi- agreement will then be reached be- ralty-tort claims. These are claims for tween the Admiralty and Maritime damage caused by vessels in the naval Law Division and the Office of Counsel, service or by other property under the MSC, as to how the incident should be jurisdiction of the Navy, or damage handled. caused by a maritime tort committed by an agent or employee of the Navy, [39 FR 9962, Mar. 15, 1974, as amended at 55 and claims for damage caused by a pri- FR 12173, Apr. 2, 1990; 65 FR 60861, 60862, Oct. vately owned vessel to a vessel or prop- 13, 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, erty of the Navy (affirmative claims). Oct. 3, 2007] The Admiralty and Maritime Law Divi- § 752.3 Claims against the Navy. sion also handles claims for towage and salvage services rendered to a vessel in (a) Settlement authority. 10 U.S.C. 7622 the naval service. provides settlement authority for dam- (e) Admiralty-contract claims. Admi- age caused by a vessel in the naval ralty-contract claims arising out of the service or by other property under the operations of the Sealift Com- jurisdiction of the Department of the mand (MSC) are handled by its Office Navy; compensation for towage or sal- of Counsel. MSC is responsible for the vage service, including contract sal- procurement of vessels and space for vage, rendered to a vessel in the naval the commercial ocean transportation service or to other property of the of Department of Defense cargo, mail, Navy; or damage caused by a maritime and personnel. It is also responsible for tort committed by any agent or em- the maintenance, repair, and alteration ployee of the Department of the Navy of Government-owned vessels assigned or by property under the jurisdiction of to it. The Office of Counsel, MSC, deals the Department of the Navy. The limit with the various claims of a contract on the Secretary’s settlement author- nature which arise out of these oper- ity is payment of $15,000,000. A claim ations. These include claims for cargo which is settled for an amount over damage, charter hire, redelivery, gen- $15,000,000 is certified to Congress for eral average, and claims arising under payment. 7622 provides that MSC ship-repair contracts. the Secretary may delegate his settle- (f) Damage caused by Navy contract ment authority in matters where the stevedores. Office of Counsel, Naval amount to be paid is not over $1,000,000. Supply Systems Command, has cog- Under the Secretary’s delegation, set- nizance of admiralty claims for damage tlements not exceeding $500,000 may be caused by Navy contract stevedores. effected by the Judge Advocate Gen- Under these stevedore contracts, the eral. Under the Secretary’s delegation, stevedoring companies are responsible settlements not exceeding $250,000 may for negligent acts of their employees be effected by the Deputy Assistant

424

VerDate Mar<15>2010 14:21 Jul 30, 2012 Jkt 226130 PO 00000 Frm 00434 Fmt 8010 Sfmt 8010 Y:\SGML\226130.XXX 226130 erowe on DSK2VPTVN1PROD with CFR Department of the Navy, DoD § 752.5

Judge Advocate General (Admiralty tive admiralty claims as it does claims and Maritime Law). against the Navy. The statute confer- (b) Settlement is final. The legislation ring this authorization is codified in 10 specifically authorizes the Secretary to U.S.C. 7623, and is the reciprocal of 10 settle, compromise, and pay claims. U.S.C. 7622 referred to in § 752.3. The settlement, upon acceptance of (b) Scope. 10 U.S.C. 7623 is a tort payment by the claimant, is final and claims-settlement statute. It is not conclusive for all purposes. limited to affirmative claims arising (c) Settlement procedures. Where the out of collision, but embraces all in- amount paid is over $500,000, after stances of damage caused by a vessel or agreement is reached with counsel or floating object to property of the claimants, the procedure is to prepare United States under the jurisdiction of a settlement recommendation for the the Department of the Navy or for approval of the Secretary of the Navy. which the Department of the Navy has When settlement has been approved, assumed an obligation to respond. Per- the voucher required for effecting pay- haps the most frequent instance is ment is prepared. The settlement where a privately owned vessel dam- check is then exchanged, in keeping ages a Navy pier or shore structure. To with the commercial practice, for an eliminate any issue of whether the executed release. In some situations, damaging instrumentality was a ves- where the exchange of documents is sel, the words ‘‘or floating object’’ were impracticable, a claimant is requested included. to forward the executed release by (c) Statute of limitation. The United mail, on the understanding that the re- States is subject to a three-year stat- lease does not become effective until ute of limitation when it asserts an af- the check is received in payment. firmative claim for money damages Claims settled under 10 U.S.C. 7622 are grounded in tort. This limitation is paid out of annual Department of De- subject to the usual exclusions, such as fense appropriations. inability to prosecute due to war, un- (d) Limitation period. The Secretary’s availability of the ‘‘res’’ or defendant, settlement authorization is subject to and certain exemptions from legal a two-year limitation. This limitation process (28 U.S.C. 2415, 2416). is not extended by the filing of claim (d) Litigation. 10 U.S.C. 7623 does not nor by negotiations or correspondence. apply to any claim where suit is filed. A settlement agreement must be If the Admiralty and Maritime Law Di- reached before the end of the two-year vision is unable to effect settlement, period. If settlement is not accom- the matter is referred to the Depart- plished, then the claimant must file ment of Justice for the filing of a com- suit under the appropriate statute to plaint against the offending party. avoid the limitation bar. The agree- Thereafter, as in the case of adverse ment reached in negotiations must re- litigated claims, the Navy has no fur- ceive the approval of the Secretary of ther authority to effect settlement. the Navy or his designee, depending on [39 FR 9962, Mar. 15, 1974, as amended at 55 the amount involved, prior to the expi- FR 12174, Apr. 2, 1990; 65 FR 60861, Oct. 13, ration of the two-year period. 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, (e) Matters in litigation. When suit is Oct. 3, 2007] filed, the matter comes within the cog- nizance of the Department of Justice, § 752.5 Salvage. and the Secretary of the Navy is no (a) Scope. This section relates to sal- longer able to entertain a claim or to vage claims against or by the Navy for make administrative settlement. compensation for towage and salvage [39 FR 9962, Mar. 15, 1974, as amended at 55 services, including contract salvage, FR 12173, Apr. 2, 1990; 65 FR 60861, 60862, Oct. rendered to a vessel in the naval serv- 13, 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, ice or to other property under the ju- Oct. 3, 2007] risdiction of the Department of the Navy, or for salvage services rendered § 752.4 Affirmative claims. by the Department of the Navy. Suits (a) Settlement authority. The Navy has for salvage may be maintained under the same authority to settle affirma- the Public Vessels Act, and salvage

425

VerDate Mar<15>2010 14:21 Jul 30, 2012 Jkt 226130 PO 00000 Frm 00435 Fmt 8010 Sfmt 8010 Y:\SGML\226130.XXX 226130 erowe on DSK2VPTVN1PROD with CFR