double the loss or damage sustained by the United States (31 U.S.C. 231).

§ 31.6 Investigation of claims.

(a) When a claim is received, the office, bureau, division, or Foreign Service establishment out of whose activities the claim arose shall make such investigation as may be necessary or appropriate for a determination of the validity of the claim and thereafter shall forward the claim, together with all pertinent material, and a recommendation, based on the merits of the case, with regard to allowance or disallowance of the claim, to the Assistant Legal Adviser, Commissioner, chief of mission or principal officer of fiscal reporting post, as the case may be.

(b) Pursuant to instructions from the Department, acting at the request of any other Federal agency, a Foreign Service establishment shall make such investigations as may be necessary or appropriate for the determination of the validity of the claim arising outside the United States, and thereafter shall forward the claim, together with all pertinent material, and a recommendation regarding allowance or disallowance of the claim, to the Department for transmission to the requesting agency.

[32 FR 4020, Mar. 14, 1967, as amended at 52 FR 43193, Nov. 11, 1987]

§ 31.7 Determination of claims.

Claims will be determined in accordance with the applicable statute and the applicable subpart of this part.

§31.8 Adjustment or settlement of claims.

(a) Except on instructions from the Legal Adviser, Deputy Legal Advisers or the Assistant Legal Adviser no claim will be adjusted or settled by a chief of mission, principal officer of a fiscal reporting post if it falls within one of the following categories:

(1) A new precedent or new point of law;

(2) A claim which involves or may involve a question of policy;

(3) A claim in which the United States is or may be entitled to indemnity or contribution from a third party and the claim against the third party has not been settled;

(4) A claim whose adjustment or settlement would, for any reason, control the disposition in a related claim in which the amount to be paid may exceed $25,000;

(5) A claim in which the United States, an employee, agent or cost-plus contractor is involved in litigation based on a claim arising out of the same transaction.

(b) If a chief of mission or principal officer of a fiscal reporting post considers, after the investigation of the claim has been completed, that the claim falls within one of the categories listed in paragraph (a) of this section, he or she shall transmit the claim, together with all pertinent material, to the Assistant Legal Adviser.

(c) When the Legal Adviser, Deputy Legal Adviser, or the Assistant Legal Adviser considers that a claim falls within one of the categories listed in paragraph (a) of this section, he or she shall consult the Department of Justice. Such consultation shall be initiated by a written communication addressed to the Assistant Attorney General, Civil Division, containing (1) a short and concise statement of the facts and of the reasons for the referral, (2) copies of relevant portions of the claim file, and (3) a statement of the recommendations and views of the

Department.

(d) The settlement of a claim for an amount in excess of $25,000 shall not be effected until the Legal Adviser, Deputy Legal Adviser, or the Assistant Legal Adviser has obtained the written approval of the Department of Justice. Consultations with a view to obtaining such approval shall be initiated as provided in paragraph (c) of this section. For purposes of this paragraph, a principal claim and a derivative or subrogated claim shall be treated as a single claim.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984; 52 FR 43193, Nov. 11, 1987]

§ 31.9 Payment of claims.

(a) When a claim is approved:

(1) If payment is to be in the amount of $2,500 or less it will be

made out of appropriations available to the Department;

(2) If payment is to be in excess of $2,500 and not more than $100,000 it will be obtained by the Department by forwarding Standard Form 1145 to the Claims Division, General Accounting Office;

(3) If payment is to be in excess of $100,000 it will be obtained by the Department by forwarding Standard Form 1145 to the Bureau of Accounts, Department of the Treasury, which will be responsible for transmitting the award, compromise, or settlement to the Bureau of the Budget for inclusion in a deficiency appropriation bill. (b) When the use of Standard Form 1145 is required it shall be executed by the claimant or it shall be accompanied by either a claim settlement agreement or Standard Form 95 executed by the claimant.

(c) If payment is to be in excess of $25,000, Standard Form 1145 shall be accompanied by evidence that the award has been approved by the Attorney General or his or her designee.

(d) When the claimant is represented by an attorney, the voucher for payment shall designate both the claimant and his or her attorney as "payee," and the address of the attorney shall be indicated on the voucher. The check shall be delivered to the attorney.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

§ 31.10 Final denial of claim.

Final denial of an administrative claim shall be in writing and sent to the claimant, his or her attorney, or legal representative by certified or registered mail. Except in the case of claims arising in foreign countries, the notification of final denial shall contain a statement that if the claimant is dissatisfied with the decision, he may file suit in an appropriate U.S. District Court not later than 6 months after the date of mailing of the notification.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

Subpart B-Federal Tort Claims Act § 31.11 General.

The Federal Tort Claims Act (2 U.S.C. 2672) authorizes the head each Federal agency, or his or her de ignee, to consider, ascertain, adjus determine, compromise, and settle ce tain tort claims for money damage against the United States, in accord ance with regulations prescribed b the Attorney General. Subpart A this part is in implementation of th regulations prescribed by the Attorne General.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended a 49 FR 16989, Apr. 23, 1984]

Tort claims, except those specifically excluded by the Federal Tort Claims Act (28 U.S.C. 2680), are allowable under the act and this subpart for damage to or loss of property and for personal injury or death, caused by the negligent or wrongful act or omission of any employee of the Depart ment or of the Commission, while acting within the scope of his or her office or employment, under circum stances where the United States, if a private person, would be liable for such damage, loss, injury, or death, in accordance with the law of the place where the act or omission occurred. The size of the payment is not limited by the act. Payments in excess of $25,000 require the prior written approval of the Attorney General.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

§ 31.13 Claims not allowable.

The following claims, among others, are not allowable under the Federal Tort Claims Act and this subpart:

(a) Any claim based upon an act or omission of an employee of the Gove ernment exercising due care, in the execution of a statute or regulation, whether or not such statute or regula tion be valid, or based upon the exer cise or performance or the failure to exercise or perform a discretionary function or duty on the part of a Fed

eral agency or an employee of the Government, whether or not the discretion involved be abused.

(b) Any claim arising out of the loss, miscarriage, or negligent transmission of letters or postal matter.

(c) Any claim arising out of assault, battery, false imprisonment, false arrest, malicious prosecution, abuse of process, libel, slander, misrepresentation, deceit, or interference with contract rights.

(d) Any claim arising in a foreign country. Such claims may be allowable under the act of August 1, 1956. See Subpart C of this part.

(a) Claims arising under the Federal Tort Claims Act must be presented in writing, within 2 years after accrual.

(b) A suit may not be filed until a claim has been finally denied. If the Department fails to make a final disposition of a claim within 6 months after it is filed, the claim may, at the option of the claimant any time thereafter, be deemed finally denied. If a claim is denied, the claimant may commence action thereon within 6 months from the date of notice of denial. The amount of the suit may not exceed the amount of the claim, except where the increased amount is based upon newly discovered evidence, or upon allegation and proof of intervening facts, relating to the amount of the claim.

§ 31.15 Acceptance of award or settlement by claimant.

The acceptance by the claimant of an award, compromise or settlement is final and conclusive on the claimant, his or her agent or legal representative and any person on whose behalf or for whose benefit the claim has been presented, and constitutes a complete release of any claim against the United States and against any employee of the Government whose act or omission gave rise to the claim by reason of the same subject matter.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

As part of any award or settlement, reasonable attorneys' fees may be allowed out of, but not in addition to, the amount of the award or settlement. Such fees shall not exceed 20 percent of the award or settlement. Any attorney who receives more than the amount allowed may be liable to a fine of not more than $2,000 or imprisonment of not more than 1 year, or both. Attorneys' fees will be fixed only upon the written request of the claimant or his or her attorney.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

The act of August 1, 1956 (5 U.S.C. 170g) authorizes the Secretary of State, when funds are appropriated therefor, to pay tort claims in the manner authorized in the first paragraph of 28 U.S.C. 2672, as amended, when such claims arise in foreign countries in connection with Department of State operations abroad. Consequently, the Federal Tort Claims Act and Subpart B of this part are applicable to claims filed under the act of August 1, 1956, except that no provision has been made in that act for the institution of suit if a claim is denied.

operations of the United States, its officers or employees, in the survey, construction, operation, or maintenance of any project constructed or administered through the American Commissioner, International Boundary Commission, United States and Mexico, if such claim does not exceed $1,000 and has been filed with the American Commissioner within 1 year after the damage is alleged to have occurred, and when in the opinion of the American Commissioner such claim is substantiated by a report of a board appointed by the said Commissioner.

This Act covers only claims for damages to lands or other private property and not claims for personal injuries. (Decision Comptroller General B36817, Sept. 28, 1943, unpublished.) To the extent that claims for damages to lands or other private property are based upon negligence, the provisions of this Act have been superseded by the Federal Tort Claims Act (26 Comp. Gen. 452, Decision B-61757, Jan. 6, 1947). Hence claims cognizable under the Act of June 19, 1939, are limited to claims for damages accruing after March 31, 1937; (a) for damages to lands or other private property of any kind by reason of the operations of the United States, its officers or employees, in the survey, construction, operation, or maintenance of any project constructed or administered through the Commissioner; (b) where such claims do not exceed $1,000; and (c) which claims are not based upon the negligence of any officer or employee of the Government acting within the scope of his or her employment.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

§ 31.20 Exclusion.

Claims which are cognizable under the Federal Tort Claims Act are not cognizable under the Act of June 19, 1939.

§ 31.21 Limitations.

The claim will be considered by the Commissioner under this subpart unless filed with him or her within 1 year after the damage is alleged to have occurred.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

§ 31.22 Action by claimant.

The provisions of § 31.4 shall be applicable to claims for damages cognizable under this subpart, except those provisions relating to personal injury or death.

§ 31.23 Payment of claim.

Upon receipt of a claim by the Commissioner, the Commissioner will appoint a board to investigate the facts surrounding the claim and to make its report and recommendations to the Commission. The Commissioner will thereupon approve the claim in whole or in part, or disapprove the claim. If the claim is approved in whole or in part, and claimant accepts the settlement tendered by the Commissioner, the claimant will execute a release of his or her claim in the form prescribed by the Commissioner and will execute a voucher in the sum approved by the Commissioner. The file on the case, including the claim, the findings of the board, the approval of the Commissioner, the release, and the voucher, will thereupon be transmitted by the Commissioner through the Department to the General Accounting Office for settlement.

(22 U.S.C. 2658 and 3926)

[32 FR 4020, Mar. 14, 1967, as amended at 49 FR 16989, Apr. 23, 1984]

can States shall request the detention in the United States of America of alleged stolen or embezzled motor vehicles, trailers, airplanes, or the component parts of any of them, the request shall be accompanied by documents legally valid in the United Mexican States. The said documents shall be as follows: (a) The original or a certified copy of the sales or conditional sales contract and where registration of title is required by law the certificate of such registration of title; (b) the original or a certified copy of the official registration card; (c) not more I than three affidavits identifying the claimant as the owner of the legal or equitable title, or both, to the property alleged to have been stolen or embezzled; (d) the original or a certified copy of any assignment of the property by the insured to the insurer pursuant to a contract of insurance in force at the time the theft or embezzlement was committed.

[22 FR 10795, Dec. 27, 1957]

§ 32.2 American motor vehicles, trailers, airplanes, etc., in Mexico.

Whenever, in accordance with the provisions of Article II of the convention (50 Stat. 1334), the United States of America shall request the detention in the United Mexican States of alleged stolen or embezzled motor vehicles, trailers, airplanes, or the component parts of any of them, the request shall be accompanied by documents legally valid in the United States of America. The said documents shall be as follows: (a) The original or a certified copy of the sales or conditional sales contract and where registration of title is required by law the certificate of such registration of title; (b) the original or a certified copy of the official registration card; (c) not more than three affidavits identifying the claimant as the owner of the legal or equitable title, or both, to the property alleged to have been stolen or embezzled; (d) the original or a certified copy of any assignment of the property by the insured to the insurer pursuant to a contract of insurance in force

ery and return of stolen or embezzled motor vehicles, etc.