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B-195214 1 (1979-07-18)

handle is hein.gao/gaobactzo0001 and id is 1 raw text is: bh1 GAO _____ United States General Accoun'ing Office Ofe eraConsel Washington, DC 20548 G In Reply ate t11lab6 to Refer to: 8-195214 JUL 181979 M. MK, Costantini Director, Freight Department Navy ,Regional Finance Center Washington, D.C, 20390 Dear Mr. Costantini: Subject: FF20 (WEHl:dh) 7240 (S) Seaboard Coast Line RR GBL K2652451 Your letter of June 18, 1979 Your letter concerns a dispute within the Department of the Navy over remedies available to the Department against the Seaboard Coast Line Rail- road (Seaboard) arising from the destruction of two missile units in a de- railment accident in Seaboard's railyard at Hamlet, North Carolina, on May 7, 1978. The Navy Regional Finance Center has successfully negotiated a settle- ment of the damages with Seaboard in accordance with the released valuation provisionu of the governing Government bill of inding (GBL) contract. Other parties, not identified in your letter, wish to ignore the settlement and to prosecute Seaboard for the full value of the destroyed missiles on the ground of negligent violations of pertinent safety regulations published by the Federal Railroad Administration (FRA). We believe that you have asked the wrong forum to settle the dispute; it should be presented to the appropriate legal authorities within the De- partment of the Navy. However, we offer these comments which are unofficial and not binding on the General Accounting Office. Iniour opinion the alleged violations of the railroad safety regulations promulgated by the FRA in 49 C.F.R. 213 (1978) would not provide a legal basis for overturning the.settlement. The regulations provide for civil penalties in the event any railroad track owner is found in violation of the safety rules by the Federal Railroad Administrator. 49 C.F.R. § 213.15. See 45 U.S.C. 5 431 et seq. (1978). Should the Navy prevail before the FRA, the judgment would be that Seaboard was in violation of the railroad.safety

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