[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: 32CFR757.5]

[Page 448-449]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 757_AFFIRMATIVE CLAIMS REGULATIONS--Table of Contents
 
                    Subpart A_Property Damage Claims
 
Sec. 757.5  Assertion of claims and collection procedures.

    (a) General. The controlling procedures for administrative 
collection of claims are established in 4 CFR part 102.
    (b) Officials authorized to pursue claims. The following officers 
are authorized to pursue and collect all affirmative claims in favor of 
the United States:
    (1) The Judge Advocate General; the Deputy Judge Advocate General; 
any Assistant Judge Advocate General; and the Deputy Assistant Judge 
Advocate General (Claims and Tort Litigation); and
    (2) Commanding officers of Naval Legal Service Offices and 
applicable Detachments, except Naval Legal Service Offices in countries 
where another service has single service responsibility in accordance 
with DOD Directive 5515.8.\2\
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 757.2.
---------------------------------------------------------------------------

    (c) Dollar limitations. All of the officers listed in Sec. 757.5(b) 
are authorized to compromise and terminate collection action on 
affirmative claims of $20,000.00 or less.
    (d) Determining liability. Liability must be determined in 
accordance with the law of the place in which the damage occurred, 
including the applicable traffic laws, elements of tort, and possible 
defenses.
    (e) Assertion of a claim. (1) Assertion of the claim is accomplished 
by mailing to the tortfeasor a ``Notice of Claim.'' The notice is to be 
mailed certified mail, return receipt requested, and should include the 
following information:
    (i) Reference to the statutory right to collect;
    (ii) A demand for payment or restoration;
    (iii) A description of damage;
    (iv) The date and place of the incident; and
    (v) The name, phone number, and office address of the claims 
personnel to contact.
    (2) See also 4 CFR part 102.
    (f) Full payment. When a responsible party or insurer tenders full 
payment or a compromise settlement on a claim, the payment should be in 
the form of a check or money order made payable to the collection 
activity, such as the ``Commanding Officer, Naval Legal Service Office, 
(Name).'' The check or money order shall then be forwarded to the 
disbursing officer serving the collecting activity for deposit in 
accordance with the provisions of the Navy Comptroller Manual.
    (g) Installment payments. See 4 CFR 102.11 for specific procedures. 
In general, if the debtor is financially unable to pay the debt in one 
lump sum, an installment payment plan may be arranged. Installment 
payments will be required on a monthly basis and the size of payment 
must bear a reasonable relation to the size of the debt and the debtor's 
ability to pay. The installment agreements should specify payments of 
such size and frequency to liquidate the Government's claim in not more 
than 3 years. Installment payments of less than $50.00 per month should 
be accepted only if justified on the grounds of financial hardship or 
for

[[Page 449]]

some other reasonable cause. In all installment arrangements, a 
confession of judgment note setting out a repayment schedule should be 
executed.
    (h) Damage to nonappropriated-fund instrumentality (NAFI) property. 
Any amount collected for loss or damage to property of a NAFI shall be 
forwarded to the headquarters of the nonappropriated-fund activity for 
deposit with that activity. In those situations where the recovery 
involves damage to both NAFI-owned property and other Government 
property, e.g., destruction of an exchange building resulting in damage 
to both the building and the exchange-owned property inside, recovery 
for the exchange-owned property shall be forwarded to the NAFI. Recovery 
for building damage shall be deposited in accordance with Sec. 757.5(f) 
above.
    (i) Damage to industrial-commercial property. When a loss or cost of 
repair has been borne by an industrial-commercial activity, payment 
shall be deposited in the Navy Industrial Fund of the activity in 
accordance with the provisions of the Navy Comptroller Manual. When a 
claim is based on a loss or damage sustained by such an activity, a 
notation to this effect shall be included in any claim file forwarded to 
the Judge Advocate General.
    (j) Replacement in kind or repair. The responsible party, or 
insurer, may want to repair or replace in kind damaged property. The 
commanding officer or officer in charge of the activity sustaining the 
loss is authorized to accept repair or replacement if, in his 
discretion, it is considered to be in the best interests of the United 
States.
    (k) Release. The commanding officer or officer in charge is 
authorized to execute a release of the claim when all repairs have been 
completed to the Government's satisfaction, and when all repair bills 
have been paid. No prior approval from the Judge Advocate General is 
required for this procedure. If repair or replacement is made, a 
notation shall be made in any investigation or claims file.