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B-190593 1 (1978-11-29)

handle is hein.gao/gaobadgpn0001 and id is 1 raw text is: DECIS D il FILE: B-19059 MATTER OF: DIGEST: - I f*.~ V Os 3 James 1. O'Rear - Payment of Compromise Settlement For Tort Claim Arising Under Activities of the United States Postal Service The Postal Service is responsible for paying settle- ments arising from its own activities, pursuant to 31 U.S.C. § 724a (1976). One of its contractor motor carriers had accident due to failure of contractor to comply with Federal safety regulations for motor carriers. Compromise settlement of lawsuit is con- strued as arising under Postal Service activities because Postal Service contract required carriers to comply with safety regulations and evidence indicates that Department of Transportation did not assume responsibility for safety inspection of postal carriers until after accident. al This is in response to.a request from the Assistant Ceneral Counsel, Claims Division, Law Department, United States Postal Service, for a decision on whether the cost of a compromise settlement in O'Rear v. United States , Civ. No. A-74-CA-74, D.C. W.D. Tex, should be paid from Postal Service funds or from the permanent indefinite appropriation for the payment of judgments and settlements against the United States (31 U.S.C. § 724a). The Postal Service has paid the $100,000 settlement from its funds, pursuant to a Stipulation for a Compromise Settlement dated Setpember 21, 1977. This Office has agreed that, should it be deter- mined that the payment should have been from the fund established by 31 U.S.C. § 724a, the Postal Service will be reimbursed from that appropriation. However, we find that the settlement is properly charged to the Postal Service, as it did arise out of Postal Service activities. The accident which gave rise to the lawsuit and the settlement occurred on December 5, 1971, when a trailer became separated from the tractor-trailer rig of an independent contractor for the Postal Service and crossed a highway, striking an automobile owned and operated by the plaintiff, James M4. O'Rear. All evidence indicates that the accident was due to the failure of the trailer to have properly functioning break-away brakes, if indeed it had the required break-away brakes at all. Break-away brakes were required of carriers subject to the Federal Motor Carrier Safety Regulations, promulgated ori-innlly by cho I tte Commerce Co.mission but la orti1e.5spnsi bility of the Department of Transportation . - THE COMPTROLLER GENERAL .2. j.OF THE UNITED STATES WASHINGTON, D.C. 20548 DATE:

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