19658 Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations

DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 15

RIN 1290–AA13

Revision of Regulations Governing

Administrative Claims Under the

Federal Tort Claims Act and Related

Statutes

AGENCY: Department of Labor (DOL),

Office of the Secretary.

ACTION: Final rule.

SUMMARY: This amendment revises

DOL’s regulations governing

administrative claims submitted to DOL

pursuant to the Federal Tort Claims Act

(FTCA) and the Military Personnel and

Civilian Employees’ Claims Act

(MPCECA), and for payment of claims

arising out of the operation of the Job

Corps. These regulations are being

revised to reflect previous delegations of

authority to the Counsel for Claims and

to the Regional Solicitors and Associate

Regional Solicitors to issue

determinations on claims under the

statutes covered by these regulations, to

clarify the manner in which

organizational units of the Department

provide administrative assistance to the

Office of the Solicitor in regard to

claims and litigation under these

statutes and to clarify and provide

further examples of the manner in

which MPCECA claims are submitted

and determined. The regulations are

also being amended to reflect a change

in statutory authority for payment of

claims arising out of operation of the Job

Corps.

EFFECTIVE DATE: May 19, 1995.

FOR FURTHER INFORMATION CONTACT:

Jeffrey L. Nesvet, Counsel for Claims

and Compensation, Division of

Employee Benefits, Office of the

Solicitor, U.S. Department of Labor,

Suite S4325, 200 Constitution Avenue,

NW., Washington, DC 20210, (202) 219–

4405.

SUPPLEMENTARY INFORMATION: In the July

22, 1994, Federal Register, Volume 59,

No. 140, 59 FR 37540–37546, the Office

of the Secretary published a proposal to

revise the regulations governing the

Federal Tort Claims Act (FTCA) and

Related Statutes.

The FTCA surrenders the sovereign

immunity of the United States for the

negligent or wrongful act or omission of

a Government employee acting within

the scope of his or her employment. The

Military Personnel and Civilian

Employees’ Claims Act (MPCECA)

authorizes payment of claims of

employees of the Government for loss

of, or damage to, property incident to

Government service. The Job Training

Partnership Act (JTPA) authorizes

payment of claims arising out of the

operation of the Job Corps that are not

cognizable under the FTCA. Part 15 of

title 29 of the Code of Federal

Regulations currently contains

regulations implementing these three

claims authorities.

Interested persons have been afforded

an opportunity to comment on the

proposed rule. No comments were

received on the proposed rule. The final

rule is being adopted as proposed, with

the exception of the addition of a

definition for the term quarters, as used

in Subpart B setting forth regulations

implementing the MPCECA.

After further review it appears useful

to resolve any ambiguity over that term

by including a definition of that term.

Therefore, a definition of the term

quarters is included by adding

subparagraph (d) to section 15.20. Since

the addition of this definition merely

eliminates an ambiguity in the original

proposed regulation, public comment is

unnecessary. In this connection, I find

good cause pursuant to 5 U.S.C.

553(b)(B), to waive public comment.

An internal reorganization in the

Office of the Solicitor resulted in a

change of title from Counsel for Claims

to Counsel for Claims and

Compensation. This change is adopted

in the final rule. Public comment is

unnecessary on this matter pursuant to

5 U.S.C. 553(b)(A) because it relates to

internal agency organization. For

consistency, sections 15.11 to 15.32

have been renumbered as sections 15.20

to 15.42.

Regulatory Evaluation

This amendment is not considered a

significant regulatory action under

Executive Order 12866. In accordance

with the Regulatory Flexibility Act (5

U.S.C. 605(b)), the undersigned, at the

time of publication of the proposed rule,

certified to the Small Business

Administration that this amendment

will not have a significant economic

impact on a substantial number of small

entities.

This amendment contains no

collection of information requirements

under the Paperwork Reduction Act (44

U.S.C. 3501).

List of Subjects in 29 CFR Part 15

Tort claims, Indemnity payments,

Administrative practice and procedure,

Government employees.

For the reasons set out above, DOL

revises 29 CFR part 15 to read as

follows:

PART 15—ADMINISTRATIVE CLAIMS

UNDER THE FEDERAL TORT CLAIMS

ACT AND RELATED STATUTES

Subpart A—Claims Against the Government

Under the Federal Tort Claims Act

Sec.

15.1 Scope and purpose.

15.2 Definitions.

15.3 Administrative claim; who may file.

15.4 Administrative claim; where to file.

15.5 Administrative claim; evidence or

information to substantiate.

15.6 Administrative action.

15.7 Determination of claims.

15.8 Referral to Department of Justice.

15.9 Final denial of claim.

15.10 Action on approved claimed.

Subpart B—Claims Under the Military

Personnel and Civilian Employee’ Claims

Act of 1964

15.20 General provisions.

15.21 Filing of claims.

15.22 Allowable claims.

15.23 Restrictions on certain claims.

15.24 Unallowable claims.

15.25 Claims involving carriers or insurers.

15.26 Claims procedures.

15.27 Computation of award and finality of

settlement.

15.28 Attorney fees.

15.29 Reconsideration.

Subpart C—Claims Arising Out of the

Operation of the Job Corps

15.40 Scope and purpose.

15.41 Allowable claims.

15.42 Claim procedure.

Authority: 28 U.S.C. 2672; 28 CFR 14.11;

31 U.S.C. 3721; 29 U.S.C. 1706(b).

Subpart A—Claims Against the

Government Under the Federal Tort

Claims Act

§ 15.1 Scope and purpose.

(a) The purpose of this subpart is to

set forth regulations relating to claims

asserted under the Federal Tort Claims

Act, as amended, accruing on or after

January 18, 1967, for money damages

against the United States for injury to or

loss of property or personal injury or

death caused by the negligent or

wrongful act or omission of an officer or

employee of the Department of Labor

while acting within the scope of his or

her office or employment.

(b) This subpart is issued subject to

and consistent with applicable

regulations on administrative claims

under the Federal Tort Claims Act

issued by the Attorney General (28 CFR

part 14).

§ 15.2 Definitions.

(a) Department means the Department

of Labor.

(b) Organizational unit means the

jurisdictional area of each Assistant

Secretary and each office head reporting

directly to the Secretary.
Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations 19659

(c) Act means the Federal Tort Claims

Act, as amended, (28 U.S.C. 1346(b), 28

U.S.C. 2671, et seq.).

§ 15.3 Administrative claim; who may file.

(a) A claim for the injury to or loss of

property may be presented by the owner

of the property, his or her duly

authorized agent, or his or her legal

representative.

(b) A claim for personal injury may be

presented by the injured person, his or

her duly authorized agent, or his or her

legal representative.

(c) A claim for death may be

presented by the executor or

administrator of the decedent’s estate, or

by any other person legally entitled to

assert such a claim in accordance with

applicable State law.

(d) A claim for loss wholly

compensated by an insurer with the

rights of a subrogee may be presented by

the insurer. A claim for loss partially

compensated by an insurer with the

rights of a subrogee may be presented by

the insurer or the insured individually,

as their respective interests appears, or

jointly. Whenever an insurer presents a

claim asserting the rights of a subrogee,

it shall present with its claim

appropriate evidence that it has the

rights of a subrogee.

(e) A claim presented by an agent or

legal representative shall be presented

in the name of the claimant, be signed

by the agent or representative, show the

title or legal capacity of the person

signing and be accompanied by

evidence of his or her authority to

present a claim on behalf of the

claimant as agent, executor,

administrator, parent, guardian, or legal

representative.

§ 15.4 Administrative claim; where to file.

(a) For the purposes of this subpart, a

claim shall be deemed to have been

presented when the Department

receives, at a place designated in

paragraph (b) of this section, a properly

executed ‘‘Claim for Damage, Injury, or

Death’’ on Standard Form 95, or other

written notification of an incident

accompanied by a claim for money

damages in a sum certain for injury to

or loss of property or personal injury or

death by reason of the incident.

(b) In any case where the claim seeks

damages in excess of $25,000 or which

involves an alleged act or omission of an

employee of the Department whose

official duty station is in Washington,

D.C., a claimant shall mail or deliver his

or her claim for money damages for

injury to or loss of property or personal

injury or death caused by the negligent

or wrongful act or omission of any

employee of the Department while

acting within the scope of his or her

office or employment hereunder to the

Council for Claims and Compensation,

Office of the Solicitor of Labor, U.S.

Department of Labor, 200 Constitution

Avenue, NW., Suite S4325, Washington,

DC 20210.

(c) In all other cases, the claimant

shall address his or her claim to the

official duty station of the employee

whose act or omission forms the basis

of the complaint.

§ 15.5 Administrative claim; evidence or

information to substantiate.

(a) Personal injury. In support of a

claim for personal injury, including

pain and suffering, the claimant is

required to submit the following

evidence or information:

(1) A written report by the attending

physician or dentist setting forth the

nature and extent of the injury, nature

and extent of treatment, any degree of

temporary or permanent impairment,

the prognosis, period of hospitalization,

if any, and any diminished earning

capacity. In addition, the claimant may

be required to submit to a physical or

mental examination by a physician

employed or designated by the

Department or another federal agency. A

copy of the report of the examining

physician shall be made available to the

claimant upon the claimant’s written

request: Provided, That he or she has,

upon request, furnished the report

referred to in the first sentence of this

subparagraph and has made, or agrees to

make available to the Department, any

other physician’s report previously or

thereafter made of the physical or

mental condition which is the subject

matter of the claim.

(2) Itemized bills for medical, dental

and hospital, or any other, expenses

incurred or itemized receipts of

payment for such expenses.

(3) If the prognosis reveals the

necessity for future treatment, a

statement of expected expenses for such

treatment.

(4) If a claim is made for loss of time

from employment, a written statement

from his or her employer showing actual

time lost from employment, whether he

or she is a full or part-time employee,

and wages or salary actually lost.

(5) If a claim is made for loss of

income and the claimant is selfemployed, documentary evidence

showing the amount of earnings lost.

For example, income tax returns for

several years prior to the injury in

question and the year in which the

injury occurred may be used to indicate

or measure lost income; a statement of

how much it did or would cost the

claimant to hire someone else to do the

same work he or she was doing at the

time of injury might also be used in

measuring lost income.

(6) Any other evidence or information

which may have a bearing on either the

responsibility of the United States for

the personal injury or the damages

claimed.

(b) Death. In support of a claim based

on death, the claimant may be required

to submit the following evidence or

information:

(1) An authenticated death certificate

or other competent evidence showing

cause of death, date of death, and age of

the decedent.

(2) Decedent’s employment or

occupation at the time of death,

including his or her monthly or yearly

salary or earnings (if any), and the

duration of his or her last employment

or occupation.

(3) Full name, address, birth date,

kinship and marital status of the

decedent’s survivors, including

identification of those survivors who

were dependent for support upon the

decedent at the time of his or her death.

(4) Degree of support afforded by the

decedent to each survivor dependent

upon him or her for support at the time

of his or her death.

(5) Decedent’s general physical and

mental condition before his or her

death.

(6) Itemized bills for medical and

burial expenses incurred by reason of

the incident causing death, or itemized

receipts of payment for such expenses.

(7) If damages for pain and suffering

prior to death are claimed, a physician’s

detailed statement specifying the

injuries suffered, duration of pain and

suffering, any drugs administered for

pain, and the decedent’s physical

condition in the interval between injury

and death.

(8) Any other evidence or information

which may have a bearing on either the

responsibility of the United States for

the death or damages claimed.

(c) Property damages. In support of a

claim for injury to or loss of property,

real or personal, the claimant may be

required to submit the following

evidence or information with respect to

each item of property:

(1) Proof of ownership.

(2) A detailed statement of the amount

claimed.

(3) An itemized receipt of payment for

necessary repairs or itemized written

estimates of the cost of such repairs.

(4) A statement listing date of

purchase, purchase price, and salvage

value where repair is not economical.

(5) Any other evidence or information

which may have a bearing on either the

responsibility of the United States for
19660 Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations

the injury to or loss of property or the

damages claimed.

§ 15.6 Administrative action.

(a) Investigation. When an

organizational unit learns of an incident

that reasonably can be expected to result

in an allegation of harm caused to an

individual or organization by an alleged

negligent act or omission by an

employee of that organizational unit or

when it learns of an administrative

claim or of litigation alleging such harm,

it has the responsibility to fully

investigate the incident and to take all

actions necessary to preserve all

relevant documents and other evidence.

Each organizational unit should

institute appropriate procedures to

ensure that notification of such

incidents are reported to the office

responsible for ensuring that evidence is

preserved and investigation undertaken.

(b) Notification. Upon receipt of an

administrative claim under the Act or of

notice of litigation seeking damages for

an alleged negligent act or omission of

an employee of the Department acting

within the scope of his or her

employment, the Office of the Solicitor

shall notify the organizational unit

responsible for the activity which gave

rise to the claim or litigation and shall

provide a copy of the administrative

claim or the claim filed in the litigation.

(c) Administrative Report. (1) Upon

receiving notification of an

administrative claim or litigation, the

organizational unit or units involved in

the circumstances of the claim or

litigation shall be responsible for

preparing an Administrative Report and

forwarding it to the Office of the

Solicitor in a timely manner. The

Administrative Report shall be in the

form of a single memorandum in

narrative form with attachments. It

should contain all of the following

elements, unless permission is obtained

from the Office of the Solicitor to

dispense with a particular element:

(i) a brief explanation of the

organization and operation of the

program involved including statutory

authority and applicable regulations;

(ii) a complete description of the

events which gave rise to the claim or

litigation, including a specific response

to every allegation in the claim or

litigation;

(iii) any information available

regarding the questions of whether the

claimant or plaintiff actually suffered

the harm alleged in the claim or

litigation and what individual or

organization caused any harm which

appears to have occurred;

(iv) any information available

regarding the damages claimed;

(v) any policy reasons which the

organizational unit wishes to advance

for or against settlement of the claim or

litigation; and

(vi) details of any claims the

Department may have against the

claimant or plaintiff, whether or not

they appear to be related to the subject

matter of the claim or litigation.

(2) A copy of all documents relevant

to the issues involved in the claim or

litigation should be attached to each

copy of the Administrative Report.

Original records should not be

forwarded to the Office of the Solicitor

unless specifically requested. They

should be preserved, however, and

remain available for litigation if

necessary.

(3) Organizational units should ensure

that all Administrative Reports are

either prepared or reviewed by an

official of the organizational unit who

was not personally involved in the

incident in question prior to filing of the

claim or suit.

(d) Litigation. During the course of

any litigation, organizational units are

responsible for providing assistance to

the Office of the Solicitor in responding

to discovery requests such as

interrogatories and requests to produce

documents, for providing assistance in

analyzing factual and program issues,

for providing witnesses for depositions

and trials, and for assistance in

producing affidavits and exhibits for use

in the litigation.

§ 15.7 Determination of claims.

(a) Authority to consider, ascertain,

adjust, determine, compromise and

settle claims. The Counsel for Claims

and Compensation shall have the

authority to consider, ascertain, adjust,

determine, compromise and settle

claims pursuant to the Federal Tort

Claims Act which involve an alleged

negligent or wrongful act or omission of

an employee whose official duty station

is the Department’s national office in

Washington, D.C., or which exceed

$25,000 in amount, or which involve a

new precedent, a new point of law, or

a question of policy. Regional Solicitors

and the Associate Regional Solicitors

are authorized to consider, ascertain,

adjust, determine, compromise and

settle, claims arising in their respective

jurisdictions pursuant to the Federal

Tort Claims Act which do not exceed

$25,000 in amount and which do not

involve a new precedent, new point of

law, or a question of policy.

(b) Payment. Any award, compromise,

or settlement in the amount of $2,500 or

less made pursuant to this section shall

be paid by the Secretary of Labor out of

appropriations available to the

Department. Payment of an award,

compromise, or settlement in an amount

in excess of $2,500 made pursuant to

this subpart shall be made in

accordance with 28 CFR 14.10.

§ 15.8 Referral to Department of Justice.

An award, compromise or settlement

of a claim under § 2672 title 28, United

States Code, and this subpart, in excess

of $25,000 may be effected only with the

prior written approval of the Attorney

General or his designee. For the purpose

of this subpart, a principle claim and

any derivative or subrogated claim shall

be treated as a single claim.

§ 15.9 Final denial of claim.

Final denial of an administrative

claim under this subpart shall be in

writing, and notification of denial shall

be sent to the claimant, or his or her

attorney or legal representative by

certified or registered mail. The

notification of final denial shall include

a statement of the reasons for the denial

and shall include a statement that, if the

claimant is dissatisfied with the

Department’s action, he or she may file

suit in an appropriate U.S. District Court

not later than 6 months after the date of

mailing of the notification.

§ 15.10 Action on approved claim.

(a) Payment. Payment of a claim

approved under this subpart is

contingent upon claimant’s execution of

a ‘‘Voucher for Payment Under Federal

Tort Claims Act,’’ Standard Form 1145.

When a claimant is represented by an

attorney, the voucher for payment shall

designate both the claimant and his or

her attorney as payees, and the check

shall be delivered to the attorney whose

address shall appear on the voucher.

(b) Acceptance. Acceptance by the

claimant, or his or her agent or legal

representative, of an award,

compromise, or settlement under § 2672

or § 2677 of title 28, U.S.C., is final and

conclusive on the claimant, his or her

agent or legal representative, and any

other 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 officer or

employee of the Government whose act

or omission gave rise to the claim by

reason of the same subject matter.

Subpart B—Claims Under the Military

Personnel and Civilian Employees’

Claims Act of 1964

§ 15.20 General provisions.

(a) Scope and Purpose. This subpart

applies to all claims filed by or on

behalf of employees of the Department

for loss of or damage to personal
Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations 19661

property incident to their service with

the Department under the Military

Personnel and Civilian Employees’

Claims Act of 1964, (hereinafter referred

to as the Act). A claim must be

substantiated and the possession of the

property determined to be reasonable,

useful or proper.

(b) Payment. The maximum amount

that can be paid for any claim under the

Act is $40,000 and property may be

replaced in kind at the option of the

Government.

(c) Policy. The Department is not an

insurer and does not underwrite all

personal property losses that an

employee may sustain. Employees are

encouraged to carry private insurance to

the maximum extent practicable to

avoid losses which may not be

recoverable from the Department. The

procedures set forth in this subpart are

designed to enable the claimant to

obtain the proper amount of

compensation for the loss or damage.

Failure of the claimant to comply with

these procedures any reduce or preclude

payment of the claim under this

subpart.

(d) Definition. Quarters means a

house, apartment or other residence that

is a Department employee’s principal

residence.

§ 15.21 Filing of claims.

(a) Who may file. (1) A claim may be

made pursuant to this subpart by an

employee or by a spouse or authorized

agent, or legal representative on behalf

of the employee. If the employee is

deceased, the claim may be filed by a

survivor in the following order of

preference: spouse, children, parent,

brother or sister or the authorized agent

or legal representative of such person or

persons.

(2) A claim may not be made

hereunder by or for the benefit of a

subrogee, assignee, conditional vendor

or other third party.

(b) Where to file. A claim hereunder

must be presented in writing. If the

claimant’s official duty station is at the

Department’s national office in

Washington, DC., or if the claim is for

an amount in excess of $25,000, the

claim should be filed with the Counsel

for Claims and Compensation, Office of

the Solicitor of Labor, U.S. Department

of Labor, Suite S4325, 200 Constitution

Avenue, NW., Washington, DC 20210.

In all other cases the claimant shall

address the claim to the regional or

branch office of the Solicitor of Labor

servicing the claimant’s official duty

station.

(c) Evidence required. The claimant is

responsible for substantiating

ownership or possession, the facts

surrounding the loss or damage, and the

value of the property. Any claim filed

hereunder must be accompanied by the

following:

(1) A written statement, signed by the

claimant or his or her authorized agent,

setting forth the circumstances under

which the damage or loss occurred. This

statement shall also include:

(i) A description of the type, design,

model number or other identification of

the property.

(ii) The date of purchase or

acquisition and the original cost of the

property.

(iii) The location of the property when

the loss or damage occurred.

(iv) The value of the property when

lost or damaged.

(v) The actual or estimated cost of the

repair of any damaged item.

(vi) The purpose of and authority for

travel, if the loss or damage occurred

incident to transportation or to the use

of a motor vehicle.

(vii) Any and all available information

as to the party responsible for the loss

or damage, if such party is someone

other than the claimant, and all

information as to insurance contracts,

whether held by the claimant or by the

party responsible.

(2) Copies of all available and

appropriate documents such as bills of

sale, estimates of repairs, or travel

orders. In the case of an automobile, the

claimant must file two estimates of

repair or a certified paid bill showing

the damage incurred and the cost of all

parts, labor and other items necessary to

the repair of the vehicle or a statement

from an authorized dealer or repair

garage showing that the cost of such

repairs exceeds the value of the vehicle.

(3) A copy of the power of attorney or

other authorization if the claim is filed

by someone other than the employee.

(4) A statement from the employee’s

immediate supervisor confirming that

possession of the property was

reasonable, useful or proper under the

circumstances and that the damage or

loss was incident to service.

(d) Time limitations. A claim under

this part may be allowed only if it is

filed in writing within 2 years after

accrual of the claim. For the purpose of

this part, a claim accrues at the later of:

(1) the time of the accident or incident

causing the loss or damage;

(2) such time as the loss or damage

should have been discovered by the

claimant by the exercise of due

diligence; or

(3) such time as cause preventing

filing no longer exists or as war or

armed conflict ends, whichever is

earlier, if a claim otherwise accrues

during war or an armed conflict or has

accrued within two years before war or

an armed conflict begins, and for cause

shown.

§ 15.22 Allowable claims.

(a) A claim may be allowed only if the

property involved was being used

incident to service with the Department

and:

(l) The damage or loss was not caused

wholly or partly by the negligent or

wrongful act or omission of the

claimant, his or her agent, the members

of his or her family, or his or her private

employee (the standard to be applied is

that of reasonable care under the

circumstances); and

(2) The possession of the property lost

or damaged and the quantity and the

quality possessed is determined to have

been reasonable, useful or proper under

the circumstances; and

(3) The claim is substantiated by

proper and convincing evidence.

(b) Claims which are otherwise

allowable under this subpart shall not

be disallowed solely because the

claimant was not the legal owner of the

property for which the claim is made.

(c) Subject to the conditions in

paragraph (a) of this section and the

other provisions of this subpart, any

claim for damage to, or loss, of personal

property incident to service with the

Department may be considered and

allowed. For the purpose of subpart B of

this part, an alternative work location at

which an employee is performing duties

pursuant to an approved Flexiplace

agreement shall be considered an

official duty station. The following are

examples of the principal types of

claims which may be allowed, but these

examples are not exclusive and other

types of claims may be allowed, unless

hereinafter excluded:

(1) Property or damage in quarters or

other authorized places. Claims may be

allowable for damage to, or loss of,

property arising from fire, flood,

hurricane, other natural disaster, theft,

or other unusual occurrence, while such

property is located at:

(i) Quarters within the 50 States or the

District of Columbia that were assigned

to the claimant or otherwise provided in

kind by the United States; or

(ii) Quarters outside the 50 States and

the District of Columbia that were

occupied by the claimant, whether or

not they were assigned or otherwise

provided in kind by the United States,

except when the claimant is a civilian

employee who is a local inhabitant; or

(iii) Any warehouse, office, working

area or other place (except quarters)

authorized or apparently authorized for

the reception or storage of property.
19662 Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations

(2) Transportation or travel losses.

Claims may be allowed for damage to,

or loss of, property incident to

transportation or storage pursuant to

order or in connection with travel under

orders, including property in the

custody of a carrier, an agent or agency

of the Government, or the claimant.

(3) Mobile homes. Claims may be

allowed for damage to, or loss of, mobile

homes and their contents under the

provisions of paragraph (c)(2) of this

section. Claims for structural damage to

mobile homes, other than that caused by

collision, and damage to contents of

mobile homes resulting from such

structural damage, must contain

conclusive evidence that the damage

was not caused by structural deficiency

of the mobile home and that it was not

overloaded. Claims for damage to, or

loss of, tires mounted on mobile homes

will not be allowed, except in cases of

collision, theft or vandalism.

(4) Enemy action or public service.

Claims may be allowed for damage to,

or loss of, property as a direct

consequence of:

(i) Enemy action or threat thereof, or

combat, guerrilla, brigandage, or other

belligerent activity, or unjust

confiscation by a foreign power or its

nationals.

(ii) Action by the claimant to quiet a

civil disturbance or to alleviate a public

disaster.

(iii) Efforts by the claimant to save

human life or Government property.

(5) Property used for the benefit of the

Government. Claims may be allowed for

damage to, or loss, of property when

used for the benefit of the Government

at the request of, or with the knowledge

and consent of superior authority.

(6) Clothing and Accessories. Claims

may be allowed for damage to, or loss

of, clothing and accessories customarily

worn on the person, such as eyeglasses,

hearing aids, or dentures.

(7) Expenses incident to repair.

Claimants may be reimbursed for the

payment of any sales tax incurred in

connection with repairs to an item. The

costs of obtaining estimates of repair

(subject to the limitations set forth in

§ 15.14(c)) are also allowable.

§ 15.23 Restrictions on certain claims.

Claims of the type described in this

section are only allowable subject to the

restrictions noted:

(a) Money or currency. Claims may be

allowed for loss of money or currency

(which includes coin collections) only

when lost incident to fire, flood,

hurricane, other natural disaster, or by

theft from quarters (as limited by

§ 15.22(c)(1)). In incidents of theft from

quarters, it must be conclusively shown

that the quarters were locked at the time

of the theft. Reimbursement for loss of

money or currency is limited to an

amount which is determined to have

been reasonable for the claimant to have

had in his or her possession at the time

of the loss.

(b) Government property. Claims may

only be allowed for property owned by

the United States for which the claimant

is financially responsible to an agency

of the Government other than the

Department.

(c) Estimate fees. Claims may include

fees paid to obtain estimates of repairs

only when it is clear that an estimate

could not have been obtained without

paying a fee. In that case, the fee may

be allowed only in an amount

determined to be reasonable in relation

to the value of the property or the cost

of the repairs.

(d) Automobiles and motor vehicles.

Claims may only be allowed for damage

to, or loss of automobiles and other

motor vehicles if:

(1) Such motor vehicles were required

to be used for official Government

business (official Government business,

as used here, does not include travel, or

parking incident thereto, between

quarters and office, or use of vehicles for

the convenience of the owner. However,

it does include travel, and parking

incident thereto, between quarters and

an assigned place of duty specifically

authorized by the employee’s supervisor

as being more advantageous to the

Government); or

(2) Shipment of such motor vehicles

was being furnished or provided by the

Government, subject to the provisions of

§ 15.25.

(e) Computers and Electronics. Claims

may be allowed for loss of, or damage

to, cellular phones, fax machines,

computers and related hardware and

software only when lost or damaged

incident to fire, flood, hurricane, other

natural disaster, or by theft from

quarters (as limited by § 15.22((c)(1)) or

unless it is being shipped as a part of

a change of duty station paid for by the

Department. In incidents of theft from

quarters, it must be conclusively shown

that the quarters were locked at the time

of the theft.

§ 15.24 Unallowable claims.

Claims are not allowable for the

following:

(a) Unassigned quarters in United

States. Property loss or damage in

quarters occupied by the claimant

within the 50 States or the District of

Columbia that were not assigned to him

or otherwise provided in kind by the

United States.

(b) Business property. Property used

for business or profit.

(c) Unserviceable property. Wornout

or unserviceable property.

(d) Illegal possession. Property

acquired, possessed or transferred in

violation of the law or in violation of

applicable regulations or directives.

(e) Articles of extraordinary value.

Valuable articles, such as cameras,

watches, jewelry, furs or other articles of

extraordinary value. This prohibition

does not apply to articles in the

personal custody of the claimant or

articles properly checked, if reasonable

protection or security measures have

been taken by claimant.

(f) Intangible property. Loss of

property that has no extrinsic and

marketable value but is merely

representative or evidence of value,

such as non-negotiable stock

certificates, promissory notes, bonds,

bills of lading, warehouse receipts,

insurance policies, baggage checks, and

bank books, is not compensable. Loss of

a thesis, or other similar item, is

compensable only to the extent of the

out-of-pocket expenses incurred by the

claimant in preparing the item such as

the cost of the paper or other materials.

No compensation is authorized for the

time spent by the claimant in its

preparation or for supposed literary

value.

(g) Incidental expenses and

consequential damages. The Act and

this subpart authorize payment for loss

of or damage to personal property only.

Except as provided in § 15.22(c)(7),

consequential damages or other types of

loss or incidental expenses (such as loss

of use, interest, carrying charges, cost of

lodging or food while awaiting arrival of

shipment, attorney fees, telephone calls,

cost of transporting claimant or family

members, inconvenience, time spent in

preparation of claim, or cost of

insurance premiums) are not

compensable.

(h) Real property. Damage to real

property is not compensable. In

determining whether an item is

considered to be an item of personal

property, as opposed to real property,

normally, any movable item is

considered personal property even if

physically joined to the land.

(i) Commercial property. Articles

acquired or held for sale or disposition

by other commercial transactions on

more than an occasional basis, or for use

in a private profession or business

enterprise.

(j) Commercial storage. Property

stored at a commercial facility for the

convenience of the claimant and at his

or her expense.
Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations 19663

(k) Minimum amount. Loss or damage

amounting to less than $25.

§ 15.25 Claims involving carriers or

insurers.

In the event the property which is the

subject of the claim was lost or damaged

while in the possession of a commercial

carrier or was insured, the following

procedures will apply:

(a) Whenever property is damaged,

lost or destroyed while being shipped

pursuant to authorized travel orders, the

owner must file a written claim for

reimbursement with the last commercial

carrier known or believed to have

handled the goods, or the carrier known

to be in possession of the property when

the damage or loss occurred, according

to the terms of its bill of lading or

contract, before submitting a claim

against the Government under this

subpart.

(b) Whenever property is damaged,

lost or destroyed incident to the

claimant’s service and is insured in

whole or in part, the claimant must

make demand in writing against the

insurer for reimbursement under the

terms and conditions of the insurance

coverage, prior to the filing of the claim

against the Government.

(c) Failure to make a demand on a

carrier or insurer or to make all

reasonable efforts to protect and

prosecute rights available against a

carrier or insurer and to collect the

amount recoverable from the carrier or

insurer may result in reducing the

amount recoverable from the

Government by the maximum amount

which would have been recoverable

from the carrier or insurer had the claim

been timely or diligently prosecuted.§

However, no deduction will be made

where the circumstances of the

claimant’s service preclude reasonable

filing of such a claim or diligent

prosecution, or the evidence indicates a

demand was impracticable or would

have been unavailing.

(d) Following the submission of the

claim against the carrier or insurer, the

claimant may immediately submit his

claim against the Government in

accordance with the provisions of this

subpart, without waiting until either

final approval or denial of the claim is

made by the carrier or insurer.

(1) Upon submitting his or her claim,

the claimant shall certify in his claim

that he or she has or has not gained any

recovery from a carrier or insurer, and

enclose all correspondence pertinent

thereto.

(2) If final action has not been taken

by the carrier or insurer on the claim,

the claimant shall immediately notify

them to address all correspondence in

regard to the claim to the appropriate

Office of the Solicitor of Labor.

(3) The claimant shall advise the

appropriate Office of the Solicitor of any

action taken by the carrier or insurer on

the claim and, upon request, shall

furnish all correspondence, documents,

and other evidence pertinent to the

matter.

(e) The claimant shall assign to the

United States, to the extent of any

payment on the claim accepted by him

or her, all rights, title and interest in any

claim he or she may have against any

carrier, insurer, or other party arising

out of the incident on which the claim

against the United States is based. After

payment of the claim by the United

States, the claimant shall, upon receipt

of any payment from a carrier or insurer,

pay the proceeds to the United States to

the extent of the payment received by

him or her from the United States.

(f) Where a claimant recovers for the

loss from the carrier or insurer before

his or her claim under this subpart is

settled, the amount of recovery shall be

applied to the claim as follows:

(1) When the amount recovered from

a carrier, insurer, or other third party is

greater than or equal to the claimant’s

total loss as determined under this part,

no compensation is allowable under this

subpart.

(2) When the amount recovered is less

than such total loss, the allowable

amount is determined by deducting the

recovery from the amount of such total

loss.

(3) For this purpose, the claimant’s

total loss is to be determined without

regard to the maximum payment

limitations set forth in § 15.20.

However, if the resulting amount, after

making this deduction exceeds the

maximum payment limitations, the

claimant shall be allowed only the

maximum amount set forth in § 15.20.

§ 15.26 Claims procedures.

(a) Award. The Counsel for Claims

and Compensation, the Regional

Solicitors, and the Associate Regional

Solicitors are authorized to consider,

ascertain, adjust, determine,

compromise and settle claims filed

under this subpart that arose within

their respective jurisdictions, except

that any claim for an amount in excess

of $25,000 shall fall within the

exclusive jurisdiction of the Counsel for

Claims and Compensation.

(b) Form of claim. Any writing

received by the Office of the Solicitor

within the time limits set forth in

§ 15.21(d) will be accepted and

considered a claim under the Act if it

constitutes a demand for compensation

from the Department. A demand is not

required to be for a specific sum of

money.

(c) Notification. The determination

upon the claim shall be provided to the

claimant in writing by the deciding

official.

§ 15.27 Computation of award and finality

of settlement.

(a) The amount allowable for damage

to or loss of any item of property may

not exceed the lowest of:

(1) the amount requested by the

claimant for the item as a result of its

loss, damage or the cost of its repair;

(2) the actual or estimated cost of its

repair; or

(3) the actual value at the time of its

loss, damage, or destruction. The actual

value is determined by using the current

replacement cost or the depreciated

value of the item since its acquisition,

whichever is lower, less any salvage

value of the item in question.

(b) Depreciation in value is

determined by considering the type of

article involved, its cost, its condition

when damaged or lost, and the time

elapsed between the date of acquisition

and the date of damage or loss.

(c) Current replacement cost and

depreciated value are determined by use

of publicly available adjustment rates or

through use of other reasonable methods

at the discretion of the official

authorized to issue a determination

upon the claim in question.

(d) Replacement of lost or damaged

property may be made in kind wherever

appropriate.

(e) At the discretion of the official

authorized to issue the determination

upon the claim in question, a claimant

may be required to turn over an item

alleged to have been damaged beyond

economical repair to the United States,

in which case no deduction for salvage

value will be made in the calculation of

actual value.

(f) Notwithstanding any other

provisions of law, settlement of claims

under the Act are final and conclusive.

§ 15.28 Attorney fees.

No more than 10 per centum of the

amount in settlement of each individual

claim submitted and settled under this

subpart shall be paid or delivered to or

received by any agent or attorney on

account of services rendered in

connection with that claim.

§ 15.29 Reconsideration.

(a) Deciding Official. While there is no

appeal from the decision of the deciding

official in regard to claims under the

Act, the deciding official may always

reconsider his or her determination of a

claim.
19664 Federal Register / Vol. 60, No. 75 / Wednesday, April 19, 1995 / Rules and Regulations

(b) Claimant. A claimant may request

reconsideration from the deciding

official by directing a written request for

reconsideration to the deciding official

within 180 days of the date of the

original determination. The claimant

must clearly state the factual or legal

basis upon which he or she rests the

request for a more favorable

determination.

(c) Notification. The determination

upon the reconsideration will be

provided to the claimant in writing by

the deciding official.

Subpart C—Claims Arising Out of the

Operation of the Job Corps

§ 15.40 Scope and purpose.

(a) The purpose of this subpart is to

set forth regulations relating to claims

for damage to persons or property

arising out of the operation of Job Corps

which the Secretary of Labor finds to be

a proper charge against the United

States but which are not cognizable

under the Federal Tort Claims Act.

(b) This subpart further amplifies the

regulatory provisions set forth in 20 CFR

638.526(b) regarding such claims.

§ 15.41 Allowable claims.

(a)(1) A claim for damage to persons

or property arising out of an act or

omission of a student enrolled in the Job

Corps may be considered pursuant to

§ 436(b) of the Job Training Partnership

Act (29 U.S.C. 1706(b)):

(i) if the act or omission which gave

rise to the claim took place at the center

to which the student involved was

assigned, or

(ii) if the student involved was not

within the geographical limits of his

hometown and was within 100 miles of

the center to which he or she was

assigned, or while he or she was on

authorized travel to or from the center.

(2) The claim may be paid if the

deciding official, in his or her

discretion, finds the claim to be a proper

charge against the United States

resulting from an act or omission of a

student enrolled in the Job Corps.

(b) A claim for damage to person or

property hereunder may not be paid if

the claim is cognizable under the

Federal Tort Claims Act (28 U.S.C.

2677).

(c) A claim for damage to person or

property may be adjusted and settled

hereunder in an amount not exceeding

$1500.

§ 15.42 Claim procedures.

(a) Claim. A claim under this subpart

must be in writing and signed by the

claimant or by an authorized

representative. It must be received by

the Office of the Solicitor within two

years of the date upon which the claim

accrued.

(b) Award. The Regional Solicitors

and Associate Regional Solicitors are

authorized to consider, ascertain, adjust,

determine, compromise and settle

claims filed under this subpart that

arose within their respective

jurisdictions.

(c) Notification. The determination

upon the claim shall be provided to the

claimant in writing by the deciding

official.

(d) Reconsideration. Reconsideration

of a determination under this subpart

shall be available pursuant to the

procedures and limitations set forth in

§ 15.29.

Signed at Washington, D.C., this 14th day

of April 1995.

Robert B. Reich,

Secretary of Labor.

[FR Doc. 95–9659 Filed 4–18–95; 8:45 am]

BILLING CODE 4510–23–M