[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR752.2]

[Page 439-440]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 752_ADMIRALTY CLAIMS--Table of Contents
 
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). 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).

[[Page 440]]

    (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 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; 69 FR 20542, Apr. 16, 2004]