Appendix to Subpart W-Redelegations of Authority To Compromise and Close Civil Claims

CIVIL DIVISION

[Memo No. 374]

DELEGATION OF AUTHORITY ΤΟ UNITED STATES ATTORNEYS IN CIVIL DIVISION CASES

By virtue of the authority vested in me by Part 0 of Title 28 of the Code of Federal Regulations, particularly sections 0.45, 0.46, 0.160, 0.162, 0.164, 0.166, and 0.168, it is hereby ordered as follows:

SECTION 1. Scope of authority. The authority delegated by this Memorandum is applicable to civil claims, both by and against the Government, which are under the jurisdiction and authority of the Assistant Attorney General in charge of the Civil Division (hereafter in this Memorandum referred to as the Assistant Attorney General). United States Attorneys are hereby authorized to take all necessary steps, with regard to the claims described in this Memorandum, to protect the interests of the United States, including the institution, conduct, compromise, and termination of appropriate legal proceedings, without prior approval of the Assistant Attorney General or his representative, but subject to the limitations and conditions set forth in this Memorandum, the limitations set forth in special instructions and manuals, and the requirements set forth in the United States Attorneys Manual. Except as provided in Section 0.131 of Title 28 of the Code of Federal Regulations, the authority conferred by this Memorandum shall not be redelegated by United States Attorneys except in the case of their protracted absence from their offices or in other unusual circumstances.

SEC. 2. Responsibility. The Assistant Attorney General has and, of course, retains the ultimate responsibility for the proper handling and administration of all civil litigation (excepting certain areas of specialized civil litigation assigned to other divisions of this Department-see Part 0 of Title 28 of the Code of Federal Regulations) involving the United States, its departments, and agencies, including the President of the United States, the heads of Executive Departments and agencies, and certain other officers and employees of the Government. Each United States Attorney

shall be immediately responsible for the proper handling of each claim involving an exercise of any authority delegated to him by this Memorandum. The Assistant Attorney General shall provide United States Attorneys with such advice or assistance as may be deemed necessary. The Assistant Attorney General may, at any time, withdraw any authority delegated by this Memorandum as it relates to any particular case, or part thereof, or to any particular category of

cases.

SEC. 3. Claims covered-A. Admiralty and Shipping Section matters. Claims for civil penalties and forfeitures not exceeding $5,000, exclusive of interest and costs for violation of the laws relating to inspection and documentation of vessels and to obstruction and pollution of navigable waters, interference with or damage to aids to navigation, and all similar matters but not including any claim for injunctive or declaratory relief. (Referred by local offices of the Coast Guard, the Bureau of Customs and the Army Engineers.)

B. Fraud Section matters. Civil claims arising from fraud on the Government (other than fraud matters referred to the Antitrust, Land and Natural Resources, and Tax Divisions), including claims under the False Claims Act, the Surplus Property Act, the Anti-Kickback Act, the Contract Settlement Act, and common law fraud whenever the amount of single damages claimed (exclusive of double damages, forfeitures, interest, and costs) does not exceed $5,000.

C. General Claims Section matters. Claims by and against the Government whenever the amount claimed does not exceed $5,000, exclusive of interest and costs, as follows:

1. Claims for conversion of Government property other than ships, cargoes, or other maritime property.

2. Claims by the Department of Agriculture for the recovery of civil penalties for violations of the provisions of the Agricultural Adjustment Act of 1938; 7 U.S.C. 1314, 1340, 1346, 1356, 1359, 1376, and 1380n.

3. Claims by the Department of Agriculture for the recovery of civil penalties for violations of the Packers and Stockyards Act; 7 U.S.C. 203, 215.

4. Claims by the Department of Agriculture for the recovery of civil penalties for violations of contracts entered into under the Soil Bank Act; 7 U.S.C. 1811.

5. Claims by the Federal Communications Commission for the recovery of forfeitures under the Communications Act of 1934, as amended; 47 U.S.C. 510. 6. Claims by the Interstate Commerce Commission for the recovery of civil penalties for the violation of car service orders under the Interstate Commerce Act, as amended; 49 U.S.C. 1(12), 1(15), 1(17) (a).

7. Claims by the Federal Crop Insurance Corporation (Department of Agriculture) under the Federal Crop Insurance Act; 7 U.S.C. 1508, et seq.

8. Claims by the Farmers Home Administration of the Department of Agriculture under the Farmers Home Administration Act of 1946; 7 U.S.C. 1921, et seq.

9. Claims by the Commodity Credit Corporation of the Department of Agriculture under the Commodity Credit Corporation Charter Act; 15 U.S.C. 714, et seq.

10. Claims by the Department of Agriculture arising under the Soil Conservation and Allotment Act; 16 U.S.C. 590a, et seq. and other conservation practices programs.

11. Claims by the Army and Air Force Exchange Service sounding in contract or quasi-contract.

12. Claims by the Civil Service Commission based upon notes assigned to it by employee insurance companies.

13. Claims by the Federal Housing Administration on account of loans made or insured by that agency.

14. Claims referred upon General Accounting Office certificates of indebtedness or proofs of claim, including Veterans Administration and military overpayments, except those involving carriage of goods by water.

15. Claims by the Small Business Administration arising out of the lending activities of that agency, except loans on the security of vessels.

16. Claims by the Department of the Treasury for the collection of customs duties and recoveries on bonds provided by importers.

17. Claims by the Veterans Administration for the escheat of funds pursuant to 38 U.S.C. 3202 (e) and for the vesting of personal estates pursuant to 38 U.S.C. 5220-5228.

18. Claims by the Veterans Administration on account of farm, business, and home loans, made, guaranteed, or insured by that agency.

19. Suits in which the United States has been made a party defendant pursuant to 28 U.S.C. 2410, except liens on vessels or other maritime property.

D. General Litigation Section matters. Claims seeking specific relief, as follows:

1. Suits to enjoin violations of, and collect penalties up to $5,000 under, the Agricultural Adjustment Act of 1938; 7 U.S.C. 1376.

2. Suits to enjoin violations of, and collect penalties up to $5,000 under, the Packers and Stockyards Act; 7 U.S.C. 203, 216.

3. Suits to enjoin violations of, and collect penalties up to $5,000 under, the Perishable Agricultural Commodities Act; 7 U.S.C. 499c(a), 499h (d).

E. Tort Section matters. 1. Claims for hospital and medical care and treatment and for damage to Government property, other than ships, cargoes, or other maritime property whenever the amount claimed does not exceed $5,000 exclusive of interest and costs.

2. Federal Tort Claims Suits

a. Suits under the Federal Tort Claims Act, 28 U.S.C. 1346(b), whenever all claims for damages arising out of one incident do not exceed $5,000.

b. In all suits under the Federal Tort Claims Act, regardless of amount claimed, the United States Attorney may compromise all claims arising out of one incident for an aggregate amount of $5,000 or less without prior approval of the Assistant Attorney General unless previously instructed to the contrary.

F. Civil Division judgments. Final civil judgments in favor of the United States in cases in which the judgment amount does not exceed $5,000 exclusive of interest and costs.

SEC. 4. Exceptions to special delegations of authority. Notwithstanding any of the provisions of this Memorandum, United States Attorneys shall not compromise or close any claim described in this Memorandum in any case in which (1) there is a divergence of views between the United States Attorney and the agency or department originating the claim as to the action to be taken when the views of such agency are required to be obtained (see Section 5 of this Memorandum); or (2) the claim involves a new point of law (or otherwise may constitute a significant precedent); or (3) in the opinion of the United States At

torney, or of the Assistant Attorney General, a question of policy is, or may be, involved. In such cases, a compromise or closing memorandum must be submitted to the Assistant Attorney General for approval.

SEC. 5. Solicitation of agency recommendation for compromise. The views and recommendations of the referring office of agencies and departments for the compromising and closing of claims involving authority delegated by this Memorandum should be obtained whenever: (1) the agency or department has specifically requested that it be consulted; (2) a question of agency or department policy is or may be involved; (3) a question of enforcement is present, i.e., cases involving civil fines and penalties.

SEC. 6. Bases for compromise or closing of claims and judgments. (a) A claim may be compromised or closed by a United States Attorney pursuant to the authority delegated by this Memorandum even though substantial legal or factual problems exist, but only if the amount of the offer fairly reflects the litigative probability and no question of policy or enforcement is present.

(b) A claim or a judgment may be compromised or closed on the basis of doubtful collectibility, having due regard for the debtor's anticipated future financial status. A claim or a judgment may be closed if the cost of further collection efforts will substantially exceed the amount that can be recovered thereby.

(c) Whenever a claim is closed or compromised by a United States Attorney pursuant to the authority conferred upon him by this Memorandum, he shall execute and place in the file a memorandum which shall contain a description of the claim and a full statement of the reasons for closing it.

SEC. 7. Appeals. All judicial decisions adverse to the Government involving these claims must be reported promptly to the Assistant Attorney General.

SEC. 8. Revocations. The following'described orders and memoranda are hereby superseded: Order No. 103-55, as amended, revised, and supplemented, Memo No. 119, Order No. 266-62, Order No. 301-63, Memo No. 180, as supplemented, Memo No. 351.

[Memo No. 374, 29 F.R. 7422, June 9, 1964, as amended by Memo No. 415, 30 F.R. 7819, June 17, 1965]

CIVIL DIVISION

[Directive No. 3-68]

DELEGATION OF AUTHORITY WITH RESPECT TO THE COMPROMISE OF LITIGATION

By virtue of the authority vested in me by Part 0 of Title 28 of the Code of Federal Regulations, particularly §§ 0.45, 0.46, 0.160, 0.162, 0.164, 0.166, and 0.168, it is hereby ordered as follows:

SECTION 1. Delegation of authority to Section Chiefs, Chiefs of Units designated and Attorneys in Charge of Field Offices. Authority delegated to the Assistant Attorney General in charge of the Civil Division to accept or reject offers in compromise is hereby redelegated, in part, to the several Section Chiefs, to the Chiefs of the Foreign Litigation Unit and the Judgment and Collection Unit, and to the Attorneys in Charge of Field Offices, of the Civil Division as follows (subject to the exceptions set forth in section 2 of this directive):

(1) Section Chiefs and Chiefs of Units designated. In all cases against the Government in which the amount to be paid by the Government pursuant to the offer, and in all cases involving claims asserted by the Government in which the amount demanded by the Government, does not exceed $20,000, exclusive of interests and costs.

(2) Attorneys in Charge of Field Offices. In all cases against the Government in which the amount to be paid by the Government pursuant to the offer, and in all cases involving claims asserted by the Government in which the amount demanded by the Government, does not exceed $10,000, exclusive of interests and costs.

SEC. 2. Exceptions. In any case in which any of the following-described conditions exist all offers in compromise, whether asserted against or on behalf of the Government, must be presented to the Assistant Attorney General for his consideration

(1) Whenever the agency or agencies involved oppose the settlement;

(2) Whenever a new precedent or a new point of law is involved;

(3) Whenever in the opinion of the Section Chief, the Unit Chief or the Attorney in Charge of the Field Office, as the case may be, a question of policy is or may be involved;

(4) Whenever the United States Attorney has requested reconsideration of

a compromise offer previously recommended by him and rejected;

(5) Whenever the total amount involved in other claims arising out of the same transaction exceeds the sum covered by the delegation; and

(6) Whenever, for any reason, the compromise of a particular claim, as a practical matter, will control the disposition of related claims totaling an amount in excess of the sum covered by the delegation.

SEC. 3. Record of action. In each case in which a compromise has been accepted or rejected by a Section Chief, Unit Chief or Attorney in Charge of a Field Office pursuant to the authority delegated to him by this directive, a memorandum shall be prepared for the files which shall include:

(1) A statement of the offer;

(2) A statement of the action taken; and

(3) A full statement of the reasons for the action taken.

SEC. 4. Necessity for submission to agency involved. No offer in compromise, either of a claim asserted against or of a claim asserted on behalf of the Government, shall be finally acted upon pursuant to the authority delegated by this directive without first obtaining the views of the agency or agencies involved, except in cases in which no question of policy of interest to the agency or agencies involved is present and one of the following-described conditions exists:

(1) The amount of the claim asserted on behalf of the Government, or the amount to be paid in satisfaction of the claim against the Government, does not exceed $5,000; or

(2) The compromise is based solely upon uncollectibility of the full amount of a claim asserted on behalf of the United States; or

(3) The compromise is one within the scope of section 784 (1) of Title 38 of the United States Code.

SEC. 5. Counteroffers by the Government. The delegations of authority made by this directive to compromise include the authority to make counteroffers in situations in which the making of a counteroffer seems appropriate and might accelerate disposition of the case.

SEC. 6. Recommendations for compromise submitted for approval of the Assistant Attorney General. All recommen

dations for acceptance or rejection of compromise offers which require the approval of either the Attorney General or the Assistant Attorney General shall be prepared in conformity with the format prescribed for that purpose.

[33 F.R. 12649, Sept. 6, 1968]

CRIMINAL DIVISION

[Directive No. 1]

REDELEGATION OF AUTHORITY WITH RESPECT TO COMPROMISE OF CIVIL PENALTIES AND

FORFEITURES

Delegation of authority to the First Assistant, to the Second Assistant, and to section chiefs. By virtue of the authority vested in me by § 0.169 of Title 28 of the Code of Federal Regulations, as amended, the authority delegated to me by §§ 0.160, 0.162, and 0.164 of that title to compromise civil penalties and forfeitures and to allow or deny petitions for remission or mitigation of civil penalties and forfeitures is hereby redelegated to the First Assistant, to the Second Assistant, and to section chiefs in the Criminal Division.

[29 F.R. 7383, June 6, 1964]

CRIMINAL DIVISION

[Memo No. 375]

STANDARDS AND PROCEDURES WITH RESPECT ΤΟ CRIMINAL PROSECUTIONS INVOLVING CERTAIN AGRICULTURAL MARKETING QUOTA PENALTY CASES

By virtue of the authority vested in me by Part 0 of Title 28 of the Code of Federal Regulations, particularly Sections 0.55, 0.160, 0.162, 0.164, 0.166, and 0.169, it is hereby ordered as follows:

SECTION 1. Purpose. The purpose of this Memorandum is to prescribe standards and procedures for United States Attorneys with respect to the handling of the criminal aspects of agricultural marketing quota penalty cases which are submitted to the United States Attorneys by direct referral from the attorney in charge of the local office of the