member of the armed forces or an official or civilian employee of such international organization or foreign government, will not be asserted without prior approval of The Judge Advocate General. Investigation and report thereof, together with recommendations regarding assertion and enforcement, will be forwarded through command channels to The Judge Advocate General, Attention: Chief, Litigation Division, Department of the Army, Washington, D.C. 20310, unless the provisions of applicable agreements, or regulations in implementation thereof, negate the requirement for such investigation and report.

(f) Standards of liability. (1) The Government's right to compensation for damage caused to Army property will be determined in accordance with the law of the place in which the damage occurred.

(2) To the extent that the prospective defendant's liability is covered by insurance, liability will be determined without regard to standards of pecuniary liability set forth in other regulations. If no insurance is available, claims will be asserted under this section against military and civilian employees of the United States and of host foreign governments only where necessary to complete the collection of charges imposed upon such persons under the standards established by other regulations.

(g) Concurrent claims under other regulations. (1) Claims for damage to Army property and claims for medical care cognizable under §§ 537.21537.24 arising from the same incident will be consolidated and processed under this section as a single claim.

(2) If the incident giving rise to a I claim in favor of the United States also gives rise to a potential claim or suit against the United States, the claim in favor of the Government will be asserted and otherwise processed only by a judge advocate who has apparent authority to take final action on the claim against the Government. The claims will be investigated and processed together.

(h) Claims for less than $50. Such claims need not be asserted or otherwise processed under this section unless the facts and circumstances sur

rounding the incident indicate that collection will be economically feasible (e.g., a case of clear liability covered by insurance) or desirable in the best interests of the United States.

(i) Repayment in kind. The judge advocate who asserts a claim under this section may accept, in lieu of full payment of the claim, the restoration of the property of its condition prior to the incident causing the damage, or the replacement thereof, Acceptability of these methods of repayment is conditioned upon the certification of the appropriate staff officer responsible for maintenance, such as is described for motor vehicles in paragraph 1011b, AR 735-11, before a release may be executed. The authority conferred by this paragraph is not limited to incidents involving motor vehicles.

(j) Delegation of authority. Subject to the provisions of paragraph (k) of this section, the authority conferred by paragraph 7a(9), AR 27-41, to compromise claims and to terminate collection action, with respect to claims that do not exceed $20,000, exclusive of interest, is further delegated as follows:

(1) A judge advocate, as defined in paragraph (c)(8) of this section is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $500.

(ii) Terminate collection action, provided the uncollected amount of the claim does not exceed $500.

(2) A staff judge advocate, as defined in paragraph (c)(7) of this section, is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $1,000.

(ii) Terminate collection action, provided the uncollected amount of claim does not exceed $1,000.

(3) An Army staff judge advocate as defined in paragraph (c)(6) of this section is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $5,000.

(ii) Terminate collection action, provided the uncollected amount of the claim does not exceed $5,000.

(4) The staff judge advocate of a major overseas command, as defined

in paragraph (c)(5) of this section, is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $10,000.

(ii) Terminate collection action, provided the uncollected amount of the claim does not exceed $10,000.

(k) Compromise and termination of collection action. (1) The authority delegated in paragraph (j) of this section to compromise claims will be exercised in accordance with the standards set forth in Part 103, Appendix A, AR 27-41.

(2) The authority delegated in paragraph (j) of this section to terminate collection action will be exercised in accordance with the standards set forth in section 104.3, Appendix A, AR 27-41.

(3) A debtor's liability to the United States arising from a particular incident shall be considered as a single claim in determining whether the claim is not more than $20,000, exclusive of interest, for the purpose of compromise, or termination of collection action.

(1) Releases. The judge advocate who receives payment of the claim in full, or who receives full satisfaction of an approved compromise settlement, is authorized to execute a release. A standard form furnished by the prospective defendant or his insurer may be executed, provided no indemnity agreement is included.

(m) Receipts. The commanding officer appointing a claims officer, his superior commander, the judge advocate of any command, or any officer designated by them for that purpose, may execute and deliver to any prospective defendant a receipt for payment in full, installment payment, or an offered compromise payment subject to the approval of the proper authority. DA Form 2135-R (Receipt for Payment for Damage to or Loss of Government Property) will be used. [32 FR 20977, Dec. 29, 1967]

§ 537.2 Recovery of property unlawfully detained by civilians.

(a) Legal proceedings. Whenever information is received that any property belonging to the military service of the United States is unlawfully in the

possession of any person not in the military service, the property officer or other proper officer will make an immediate report direct to the Judge Advocate General (by telephone or telegraph when the use of such means of communication seems advisable) in order that legal proceedings may be instituted for the recovery of the property and, if the property has been stolen, for the arrest, trial, conviction, and punishment of the guilty person or persons. Each report will contain:

(1) A complete description of the property involved, and its location.

(2) The name and location of the person unlawfully in possession of such property; and

(3) The facts and circumstances surrounding the unlawful possession of the property.

(b) Summary action. (1) Upon satisfactory information that such United States property unlawfully in the possession of any party or parties is likely to be removed beyond the jurisdiction, concealed, or otherwise disposed of before the necessary proceedings can be had in the proper civil tribunal for its recovery, the post or detachment commander will, as provided by this section, accomplish its immediate recovery. In the event the property consists of clothes, arms, military outfits or accounterments furnished by the United States to any enlisted man, the Federal statutes (R. S. 3748; 10 U.S.C. 3116; M. L. 1939, sec. 2018) authorizes such property to be seized and taken from any person not an enlisted man or officer of the United States, by any officer, civil or military, of the United States. With respect to other Government property, the post or detachment commander will cause the property to be seized, provided such seizure can be accomplished without committing a breach of the peace or a trespass on private premises, tendering to the person, if any, in possession or custody of the property a receipt or certificate showing that such property has been seized as belonging to the United States, and the post or detachment commander will thereafter hold the property subject to any legal proceedings that may be instituted by other parties.

(a) Statutory authority. Administrative settlement or compromise of admiralty and maritime claims in favor of and against the United States by the Secretary of the Army or his designee, under the direction of the Secretary of Defense, is authorized by the Army Maritime Claims Settlement Act of 1956 (70A Stat. 270), as amended (10 U.S.C. 4801-4804, 4806).

(b) Related statutes. This statute authorizes the administrative settlement or compromise of maritime claims and supplements the following statutes under which suits in admiralty may be brought: the Suits in Admiralty Act of 1920 (41 Stat. 525, 46 U.S.C. 741-752); the Public Vessels Act of 1925 (43 Stat. 1112, 46 U.S.C. 781-790); the Extension of the Admiralty Act of 1948 (62 Stat. 496, 46 U.S.C. 740). Similar maritime claims settlement authority is exercised by the Department of the Navy under title 10, United States Code, sections 7365, 7621-7623, and by the Department of the Air Force under title 10, United States Code, sections 98019804, 9806.

(c) Scope. (1) Section 4803 of title 10, United States Code, provides for the settlement or compromise of claims of a kind that are within the admiralty jurisdiction of a district court of the United States and of claims for damage caused by a vessel or floating object to property under the jurisdiction of the Department of the Army or property for which the Department has assumed an obligation to respond in damages, where the net amount payable to the United States does not exceed $500,000.

(2) Section 4804 of title 10, United States Code, provides for the settlement or compromise of claims in any amount for salvage services (including contract salvage and towage) performed by the Department of the Army for any vessel. The amounts of claims for salvage services are based upon per diem rates for the use of salvage vessels and other equipment; and upon repair or replacement costs of materials and equipment damaged or lost during the salvage operation. The sum claimed is intended to compensate the United States for operational costs only, reserving, however, the right of the Government to assert a claim on a salvage bonus basis, in accordance with commercial practice, in an appropriate case.

(d) Amounts exceeding $500,000. Maritime claims in favor of the United States, execept claims for salvage services, may not be settled or compromised under this section at a net amount exceeding $500,000 payable to the United States. However, all such claims otherwise within the scope of this section will be investigated and reported to the Chief, U.S. Army Claims Service, Fort Holabird, Md. 21219.

(e) Civil works activities. Rights of the United States to fines, penalties, forfeitures, or other special remedies in connection with the protection of navigable waters, the control and improvement of rivers and harbors, flood control, and other functions of the Corps of Engineers involving civil works activities, are not dealt with in this section. However, claims for money damages which are civil in nature, arising out of civil works activities of the Corps of Engineers and otherwise under this section, for which an adequate remedy is not available to the Chief of Engineers, may be processed under this section.

(f) Delegation of authority. Where the amount to be received by the United States is not more than $10,000, claims under this section, except claims for salvage services, paragraph (c)(2) of this section, may be settled or compromised by the Chief, U.S. Army Claims Service, or by the Chief, Maritime Claims Division, U.S. Army Claims Service, subject to

(a) Authority. The regulations in §§ 537.21-537.24 are in implementation of the Act of September 25, 1962 (76 Stat. 593, 42 U.S.C. 2651-3), Executive Order Number 11060 (27 FR 10925), and Attorney General's Order Number 289-62, as amended (28 CFR Part 43), providing for the recovery of the reasonable value of medical care furnished or to be furnished by the United States to a person on account of injury or disease incurred after December 31, 1962, under circumstances creating a tort liability upon some third person.

(b) Applicability and scope. (1) Sections 537.21-537.24 apply to all claims for the reasonable value of medical services furnished by or at the expense of the Army which result from incidents occurring on or after March 1, 1969. Cases which arise from incidents occurring prior to that date:

(i) And which are the responsibility of a staff judge advocate/judge advocate (SJA/JA) who is designated a recovery judge advocate (RJA) will be processed under §§ 537.21-537.24;

(ii) And which are the responsibility of an SJA/JA not so designated will be processed under the predecessor regulation until either completed or transferred.

(2) The procedures prescribed herein are to be employed within the Department of the Army for the investiga

tion, determination, assertion, and collection, including compromise and waiver, in whole or in part, of claims in favor of the United States for the reasonable value of medical services furnished by or at the expense of the Army. The Judge Advocate General provides general supervision and control of the investigation and assertion of claims arising under the Federal Medical Care Recovery Act.

(3) In Continental U.S. Army staff judge advocates and recovery judge advocates will be assigned responsibility under §§ 537.21-537.24 on a geographical area basis.

(4) The commander of any major overseas command specified in paragraph (c)(5) of this section is authorized to modify the procedures prescribed herein to accommodate any special circumstances which may exist in the command.

(5) Claims for medical care furnished by the Department of the Army on a reimbursable basis (see table 1, AR 40-3) ordinarily will be forwarded for processing directly to the Federal department or agency responsible for reimbursement.

(c) Definitions. For the purpose of §§ 537.21-537.24 only, the following terms have the meaning indicated.

(1) Claim. The Government's right to recover from a prospective defendant the reasonable value of medical care furnished to each injured party.

(2) Medical care. Includes hospitalization, out-patient treatment, dental care, nursing service, drugs, and other adjuncts such as prostheses and medical appliances furnished by or at the expense of the United States.

(3) Injured party. The person who received an injury or contracted a disease which resulted in the medical care. Such person may be an active duty or retired member, a dependent, or any other person who is eligible for medical care at Army expense. See section III, AR 40-3, and §§ 577.60577.71 of this chapter.

(4) Prospective defendant. A person other than the injured party. An individual partnership, association, corporation, governmental body, or other legal entity, foreign or domestic, against whom the United States has a claim.

(5) Major overseas command staff judge advocate. The staff judge advocate of U.S. Army Forces Southern Command; the U.S. Army, Europe; the U.S. Army, Pacific, and any command outside the continental limits of the contiguous states specially designated by The Judge Advocate General under the provisions of § 536.4b of this part.

(6) Army staff judge advocate. The staff judge advocate of each of the numbered armies in the continental United States; the Military District of Washington, U.S. Army; and U.S. Army, Alaska.

(7) Recovery judge advocate. Any staff judge advocate or judge advocate (SJA/JA) who has been assigned responsibility for processing claims under §§ 537.21-537.24 for a specific geographic area is a "recovery judge advocate" (RJA).

§ 537.22 Basic considerations.

(a) The right of recovery—(1) Applicable law. The right of the United States to recover the reasonable value of medical care furnished or to be furnished an injured party is based on the Federal Medical Care Recovery Act. It accrues simultaneously with the accrual of the injured party's right to recover damages from the prospective defendant but is independent of any claim which the injured person may have against the prospective defendant. Recovery is allowed only if the injury or diseases resulted from circumstances creating a tort liability under the law of the place where the injury occurred.

(2) Time limitation. The Act of 18 July 1966 (28 U.S.C. 2415 et seq.) establishes a 3-year statute of limitation upon actions in favor of the United States for money damages founded upon a tort. The RJA will take appropriate steps within the limitation period to assure that necessary legal action is not barred by the statute.

(3) Amount. The Government's right of recovery is limited to amounts expended or to be expended by the United States for medical care from other than Federal sources, and to amounts determined by the rates established by the Director of the Bureau of the Budget, for medical care from Federal sources, less any

amounts reimbursed by the injured party.

(b) Certain prospective defendants— (1) U.S. Government agencies. No claim will be asserted against any department, agency, or instrumentality of the United States.

(2) U.S. personnel. Claims against a member of the uniformed services; or an employee of the United States, its agencies or instrumentalities; or a dependent of a service member or an employee will not be asserted unless the prospective defendant has the benefit of liability insurance coverage or was guilty of gross negligence or willful misconduct. If simple negligence occurring in the scope of a member's or employee's employment is the basis of the claim, no claim will be asserted if such claim is excluded from the coverage of the liability insurance policy involved.

(3) Government contractors. Claims, the cost or expense of which may be reimbursable by the United States under the terms of a contract, will not be asserted against a contractor without the prior approval of The Judge Advocate General. Such claims will be investigated and the report thereof, which will include citation to the specific contract clauses involved and recommendations regarding assertion, will be forwarded through command channels to The Judge Advocate General, Attention: Chief, Litigation Division Department of the Army, Washington, D.C. 20310.

(4) Foreign persons. Claims within the scope of §§ 537.21-537.24 against foreign prospective defendants will be investigated, processed, and asserted without regard to the nationality of the prospective defendant. Claims against an international organization, or foreign government, will be investigated and reports thereof, together with recommendations regarding assertion and enforcement, will be forwarded through command channels to The Judge Advocate General, Attention: Chief, Litigation Division, Department of the Army, Washington, D.C. 20310.

(c) Concurrent claims under other regulations-(1) Section 537.1. Claims for medical care and claims for damage to Army property arising from