Department of the Navy, DoD § 752.2

payment of the balance due. Overpay- §§ 751.15–751.20 [Reserved] ments are to be properly recouped. [72 FR 53424, Sept. 19, 2007] Subpart B [Reserved]

§ 751.14 Reconsideration and appeal. PART 752—ADMIRALTY CLAIMS (a) General. When a claim is denied either in whole or in part, the claimant Sec. shall be given written notification of 752.1 Scope. the initial adjudication and of the 752.2 Organization. right to submit a written request for 752.3 Claims against the Navy. reconsideration to the original adjudi- 752.4 Affirmative claims. cating authority within 6 months from 752.5 Salvage. the date the claimant receives notice AUTHORITY: 5 U.S.C. 301; 10 U.S.C. 5013, 5148 of the initial adjudication of the claim. and 7621–7623; 32 CFR 700.105 and 700.331. If a claimant requests reconsideration and if it is determined that the original § 752.1 Scope. action was erroneous or incorrect, it This part applies to admiralty-tort shall be modified and, when appro- claims. These include claims against priate, a supplemental payment shall the United States for damage caused be approved. If full additional payment by a vessel in the naval service or by is not granted, the file shall be for- other property under the jurisdiction warded for reconsideration to the next of the Navy, or damage caused by a higher adjudicating authority. For maritime tort committed by an agent claims originally adjudicated by the or employee of the Navy for which the Head, Personnel Claims Unit Norfolk, Navy has assumed an obligation to re- the files will be forwarded to the Judge spond for damage. Affirmative claims Advocate General (Claims and Tort by the United States for damage Litigation)(Code 15) for final action. caused by a vessel or floating object to The claimant shall be notified of this Navy property are covered under this action either by letter or by copy of part. the letter forwarding the file to higher adjudicating authority. The forwarding [72 FR 56268, Oct. 3, 2007] letter shall include a synopsis of action taken on the file and reasons for the § 752.2 Organization. action or denial, as well as a rec- (a) Administrative authority of the Sec- ommendation of further action or de- retary of the Navy. The Secretary of the nial. Navy has administrative authority for (b) Files forwarded to JAG. For files settlement and direct payment where forwarded to JAG in accordance with the amount paid does not exceed § 751.14(a), the forwarding endorsement $15,000,000 and where the matter is not shall include the specific reasons why in litigation, of claims for damage the requested relief was not granted caused by naval vessels or by other and shall address the specific points or property under the jurisdiction of the complaints raised by the claimant’s re- Navy, or damage caused by a maritime quest for reconsideration. tort committed by an agent or em- (c) Appeals procedure for claims sub- ployee of the Navy, and for towage or mitted by Marine personnel. Where salvage services rendered to naval ves- any of the Marine Corps adjudication sels (10 U.S.C. 7622). The Secretary also authorities listed in § 751.8(b) fail to has authority to settle affirmative ad- grant the relief requested, or otherwise miralty claims for damage caused by a resolve the claim to the satisfaction of vessel or floating object to property the claimant, the request for reconsid- under the jurisdiction of the Navy (10 eration shall be forwarded together U.S.C. 7623). with the entire original file and the ad- (b) Admiralty and Maritime Law Divi- judicating authority’s recommenda- sion of the Office of the Judge Advocate tion, to the Judge Advocate General. General. The Navy’s admiralty-tort [72 FR 53424, Sept. 19, 2007] claims are processed and adjudicated in

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the Admiralty and Maritime Law Divi- nature which arise out of these oper- sion of the Office of the Judge Advo- ations. These include claims for cargo cate General. All correspondence with damage, charter hire, redelivery, gen- the Admiralty and Maritime Law Divi- eral average, and claims arising under sion should be addressed to the Office MSC ship-repair contracts. of the Judge Advocate General (Code (f) Damage caused by Navy contract 11), 1322 Patterson Avenue SE, Suite stevedores. Office of Counsel, Naval 3000, Washington Navy Yard, DC 20374– Supply Systems Command, has cog- 5066. nizance of admiralty claims for damage (c) Mission and policy. The primary caused by Navy contract stevedores. mission of the Admiralty and Maritime Under these stevedore contracts, the Law is to effect prompt and stevedoring companies are responsible equitable settlements of admiralty for negligent acts of their employees 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- Division, 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 [39 FR 9962, Mar. 15, 1974, as amended at 55 by an agent or employee of the Navy, FR 12173, Apr. 2, 1990; 65 FR 60861, 60862, Oct. and claims for damage caused by a pri- 13, 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, vately owned vessel to a vessel or prop- Oct. 3, 2007] erty of the Navy (affirmative claims). The Admiralty and Maritime Law Divi- § 752.3 Claims against the Navy. sion also handles claims for towage and (a) Settlement authority. 10 U.S.C. 7622 salvage services rendered to a vessel in provides settlement authority for dam- the naval service. age caused by a vessel in the naval (e) Admiralty-contract claims. Admi- service or by other property under the ralty-contract claims arising out of the jurisdiction of the Department of the operations of the Sealift Com- Navy; compensation for towage or sal- mand (MSC) are handled by its Office vage service, including contract sal- of Counsel. MSC is responsible for the vage, rendered to a vessel in the naval procurement of vessels and space for service or to other property of the the commercial ocean transportation Navy; or damage caused by a maritime of Department of Defense cargo, mail, tort committed by any agent or em- and personnel. It is also responsible for ployee of the Department of the Navy the maintenance, repair, and alteration or by property under the jurisdiction of of Government-owned vessels assigned the Department of the Navy. The limit to it. The Office of Counsel, MSC, deals on the Secretary’s settlement author- with the various claims of a contract ity is payment of $15,000,000. A claim

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which is settled for an amount over nizance of the Department of Justice, $15,000,000 is certified to Congress for and the Secretary of the Navy is no payment. 7622 provides that longer able to entertain a claim or to the Secretary may delegate his settle- make administrative settlement. ment authority in matters where the amount to be paid is not over $1,000,000. [39 FR 9962, Mar. 15, 1974, as amended at 55 FR 12173, Apr. 2, 1990; 65 FR 60861, 60862, Oct. Under the Secretary’s delegation, set- 13, 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, tlements not exceeding $500,000 may be Oct. 3, 2007] effected by the Judge Advocate Gen- eral. Under the Secretary’s delegation, § 752.4 Affirmative claims. settlements not exceeding $250,000 may (a) Settlement authority. The Navy has be effected by the Deputy Assistant the same authority to settle affirma- 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 payment by the claimant, is final and (b) Scope. 10 U.S.C. 7623 is a tort conclusive for all purposes. claims-settlement statute. It is not (c) Settlement procedures. Where the limited to affirmative claims arising amount paid is over $500,000, after out of collision, but embraces all in- agreement is reached with counsel or stances of damage caused by a vessel or claimants, the procedure is to prepare floating object to property of the a settlement recommendation for the United States under the jurisdiction of approval of the Secretary of the Navy. the Department of the Navy or for When settlement has been approved, which the Department of the Navy has the voucher required for effecting pay- assumed an obligation to respond. Per- ment is prepared. The settlement haps the most frequent instance is check is then exchanged, in keeping where a privately owned vessel dam- with the commercial practice, for an ages a Navy pier or shore structure. To executed release. In some situations, eliminate any issue of whether the where the exchange of documents is damaging instrumentality was a ves- impracticable, a claimant is requested sel, the words ‘‘or floating object’’ were to forward the executed release by included. mail, on the understanding that the re- (c) Statute of limitation. The United lease does not become effective until States is subject to a three-year stat- the check is received in payment. ute of limitation when it asserts an af- Claims settled under 10 U.S.C. 7622 are firmative claim for money damages paid out of annual Department of De- grounded in tort. This limitation is fense appropriations. subject to the usual exclusions, such as (d) Limitation period. The Secretary’s inability to prosecute due to war, un- settlement authorization is subject to availability of the ‘‘res’’ or defendant, a two-year limitation. This limitation and certain exemptions from legal is not extended by the filing of claim process (28 U.S.C. 2415, 2416). nor by negotiations or correspondence. (d) Litigation. 10 U.S.C. 7623 does not A settlement agreement must be apply to any claim where suit is filed. reached before the end of the two-year If the Admiralty and Maritime Law Di- period. If settlement is not accom- vision is unable to effect settlement, plished, then the claimant must file the matter is referred to the Depart- suit under the appropriate statute to ment of Justice for the filing of a com- avoid the limitation bar. The agree- plaint against the offending party. ment reached in negotiations must re- Thereafter, as in the case of adverse ceive the approval of the Secretary of litigated claims, the Navy has no fur- the Navy or his designee, depending on ther authority to effect settlement. the amount involved, prior to the expi- [39 FR 9962, Mar. 15, 1974, as amended at 55 ration of the two-year period. FR 12174, Apr. 2, 1990; 65 FR 60861, Oct. 13, (e) Matters in litigation. When suit is 2000; 69 FR 20542, Apr. 16, 2004; 72 FR 56268, filed, the matter comes within the cog- Oct. 3, 2007]

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§ 752.5 Salvage. 755.6 Action where offenders are members of one command. (a) Scope. This section relates to sal- 755.7 Action where offenders are members of vage claims against or by the Navy for different commands. compensation for towage and salvage 755.8 Reconsideration and appeal. services, including contract salvage, 755.9 Effect of court-martial proceedings. rendered to a vessel in the naval serv- ice or to other property under the ju- AUTHORITY: 5 U.S.C. 301; 10 U.S.C. 939, 5013, and5148; E.O. 11476, as reported in 3 CFR, 1969 risdiction of the Department of the Comp., p. 132; 32 CFR 700.206 and 700.1202. Navy, or for salvage services rendered by the Department of the Navy. Suits SOURCE: 56 FR 42232, Aug. 27, 1991, unless for salvage may be maintained under otherwise noted. the Public Vessels Act, and salvage NOTE 1: This part 755 is chapter IV of the claims are within the Secretary of the Manual of the Judge Advocate General of the Navy’s administrative-settlement au- Navy. NOTE 2: The Uniform Code of Military Jus- thority under 10 U.S.C. 7622. Salvage tice (10 U.S.C. 801-940) is referred to in this claims against the Navy are reported part 755 as the ‘‘UCMJ’’. The Manual for to and processed by the Judge Advo- Courts-Martial, United States, 1984 (E.O. cate General (Admiralty and Maritime 12473 of August 1, 1984) is referred to in this Law Division). Both claims and suits part 755 as ‘‘MCM 1984’’. for salvage against the United States are subject to the two-year limitation § 755.1 Statutory authority. of the Public Vessels Act and the Article 139, UCMJ, redress of injuries Navy’s settlement authority. to property, is the basis for this chap- (b) Affirmative claims. Authorization ter. for the settlement of affirmative sal- vage claims is contained in 10 U.S.C. § 755.2 Scope. 7365. Assertion of such claims is han- dled in the first instance by the Assist- This chapter provides for assess- ant Supervisor of Salvage (Admiralty), ments against the pay of members of USN, Naval Sea Systems Command the naval service in satisfaction of (SEA OOCL), 2531 Jefferson Davis High- claims for property damage caused way, NC/3 Room 11E54, Arlington, VA under certain circumstances. Claims 22242–5160. Salvage claims are referred for damage, loss, or destruction of pri- to the Admiralty Division only if the vately owned property caused by a per- Assistant Supervisor of Salvage (Admi- son or persons in the naval service, are ralty) is unsuccessful in making collec- payable under Article 139, UCMJ, only tion. Any money received in settle- if such damage, loss, or destruction is ment of affirmative salvage claims is caused by riotous conduct, willful con- credited to appropriations for main- duct, or acts showing such reckless or taining salvage facilities by the Navy, wanton disregard of the property rights pursuant to 10 U.S.C. 7367. of others that willful damage or de- struction is implied. Acts of the type [39 FR 9962, Mar. 15, 1974, as amended at 41 punishable under Article 109, UCMJ, FR 26866, June 30, 1976; 55 FR 12174, Apr. 2, are cognizable under Article 139, 1990; 65 FR 60861, 60862, Oct. 13, 2000; 69 FR 20542, Apr. 16, 2004] UCMJ. Charges against pay under these regulations shall be made only against the pay of persons shown to PART 755—CLAIMS FOR INJURIES have been principal offenders or acces- TO PROPERTY UNDER ARTICLE sories. 139 OF THE UNIFORM CODE OF MILITARY JUSTICE § 755.3 Claims not cognizable. The following claims are not cog- Sec. nizable under this chapter. 755.1 Statutory authority. (a) Claims resulting from simple neg- 755.2 Scope. ligence. 755.3 Claims not cognizable. 755.4 Limitation on claims. (b) Claims of subrogees. 755.5 Complaint by the injured party and in- (c) Claims for personal injury or vestigation. death.

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