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GAO United States
General Accounting Office
Washington, D.C. 20548
Office of the General Counsel
B-259532
March 6, 1995
Mr. Alan I. Saltman
Saltman & Stevens, P.C.
1800 M Street, N.W., Suite 700 South
Washington, DC 20036
Dear Mr. Saltman:
The purpose of this letter is to inform you of our decision to withhold payment of
the award in favor of your client, Alaska Pulp Corporation (APC), in Alaska Lumber
& Pulp.. Inc. v. Madigan, 2 F.3d 389 (Fed. Cir. 1993). This is being done pursuant to
31 U.S.C. § 3728, in order to collect the back pay and severance claims presented by
the National Labor Relations Board (NLRB) arising from the decision in NLRB v.
Alaska Pulp Corporation, 296 N.L.R.B. 1260 (1989), as enforced, No. 90-70614
(9th Cir. 1991) (unpub.). The amount awarded against the United States in Madigan
is $6,915,934.94, plus interest on $3,745,973.13 from January 1, 1994, until the date of
payment at the rate set by the Contract Disputes Act (CDA), 41 U.S.C. § 611. As of
today's date, the total amount owed by the United States under Madigan is
$7,203,656.47. On November 14, 1994, an administrative law judge (AIJ) issued an
Interlocutory Determination in the NLRB matter. Based on the Interlocutory
Determination, the NLRB General Counsel has estimated that, including interest
through December 31, 1994, APC's back pay and severance obligations will total
$9,037,022.1
The award in Madigan is payable from the permanent, indefinite appropriation
known as the Judgment Fund, 31 U.S.C. § 1304, subject to reimbursement from
USDA's appropriations. 41 U.S.C. § 612(c). This Office is directed to withhold
[payment from the Judgment Fund of] that part of a judgment against the United
States Government which is equal to a debt the plaintiff owes the Government.
31 U.S.C. § 3728(a). Where the plaintiff consents to this withholding, it ripens into a
setoff' and the plaintiffs debt is discharged to the extent of the amount withheld.
If the plaintiff refuses to consent to the withholding, the government is required to
1The AIJ has yet to issue his final, recommended order in this matter. Under
29 U.S.C. § 160, the AIJ's final order will become the final order of NLRB unless the
Board decides to review it, or one of the parties files exceptions to it within 20 days
of the recommended order.](ViewImageLocal?handle=hein.gao/gaobablpi0001&div=1&collection=&method=preview&ext=.png&size=3)