[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: 32CFR757.19]

[Page 454-455]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 757_AFFIRMATIVE CLAIMS REGULATIONS--Table of Contents
 
            Subpart B_Medical Care Recovery Act (MRCA) Claims
 
Sec. 757.19  Waiver and compromise.

    (a) General. A JAG designee may authorize waiver or compromise of 
any MCRA claim under his authority which does not exceed $40,000.00. A 
third party's liability for medical costs to the United States arising 
from a particular incident will be considered as a single claim in 
determining whether the claim is more than $40,000.00 for the purpose of 
waiver and compromise. When the JAG designee considers waiver or 
compromise appropriate in a claim which exceeds $40,000.00, the

[[Page 455]]

claim file will be forwarded to JAG in accordance with Sec. Sec. 757.18 
(b) and (c).
    (b) Waiver. The JAG designee may waive the Federal Government's MCRA 
interest when a responsible third-party tortfeasor cannot be located, is 
judgment proof, or has refused to pay and litigation is not feasible. 
Waiver is also appropriate when, upon written request by the injured 
person or legal representative, it is determined that collection would 
cause undue hardship to the injured person. In assessing undue hardship, 
the following circumstances of the injured person should be considered:
    (1) Permanent disability or disfigurement;
    (2) Lost earning capacity;
    (3) Out-of-pocket expenses;
    (4) Financial status;
    (5) Disability, pension and similar benefits available;
    (6) Amount of settlement or award from third-party tortfeasor; and
    (7) Any other factors which objectively indicate fairness requires 
waiver.
    (c) Compromise. The JAG designee may, upon written request of the 
injured person or legal representative, compromise the Federal 
Government's MCRA interest using the criteria listed above.