[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: 32CFR752.3]

[Page 440-441]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 752_ADMIRALTY CLAIMS--Table of Contents
 
Sec. 752.3  Claims against the Navy.

    (a) Settlement authority. 10 U.S.C. 7622) 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

[[Page 441]]

Navy or by property under the jurisdiction of the Department of the 
Navy.'' The limit on the Secretary's settlement authority is payment of 
$15,000,000. A claim which is settled for an amount over $15,000,000 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.
    (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; 69 FR 20542, Apr. 16, 2004]