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B-196022 1 (1980-04-07)

handle is hein.gao/gaobabjsw0001 and id is 1 raw text is: 




                      UNITED STATES GENERAL ACCOUNTING OFFICE
      ' ,WASHINGTON, D.C. 20548                                               

                                                         IN REPLY
                                                         REFE To: B-l96022
OFFICE OF GENERAL COUNSEL
                                       April 7, 1980







    Ms. Carol A. Latterman
    Assistant Regional Counsel
    General Services Administration
    26 Federal Plaza
    New York, N.Y. 10007

    Dear Ms. Latterman:

         This concerns your request for revie of our denial of a claim (B-196022,
    October 15, 1979) by State-Wide Insurance Company, as subrogee of MacKay Pub-
    lishing Corporation, under the Federal Tort Claims Act. The claim was for
    damage to one of MacKay's vehicles resulting from an automobile accident on
    April 30, 1979, in Hartsdale, New York, involving a GSA motor pool vehicle
    driven by a GAO employee. The Government's car was also damaged in the
    accident. Counsel for State-Wide has proposed a settlement under which State-
    Wide would pay 50% of the damages to the Government's car if the Government
    paid 50% of State-Wide's claim.

         In our denial of the claim, we concluded that the cause of the accident
    was the failure of Mrs. Kristt [the driver of the MacKay vehicle] to observe
    the stop sign before entering the intersection. That conclusion was based
    on the factual statement of Mr. Norman Krieger, the GAO employee-driver. How-
    ever, you state that you were informed by State-Wide that Mrs. Kristt claimed
    her vehicle was stopped at the stop sign when it was struck by the GSA vehicle.
    In light of the new allegations described in your letter, we discussed the
    matter again with Mr. Krieger who reiterated that Mrs. Kristt. went through a
    stop sign and struck the driver's side of his vehicle as he was making a
    left-hand turn. Mr. Krieger also stated that Mrs. Kristt admitted fault after
    the accident occurred.

         There were no independent witnesses or police reports to support either
    version of the accident. If this were just a matter of going into court with
    contradictory statements leading to opposite conclusions, we would probably
    agree with your recommendation that accepting a 50% settlement would be less
    costly than risking an adverse judgment following litigation. However, the
    Government's case is stronger than the mere unsupported statement of its
    employee. The record shows that the GSA vehicle sustained $200 worth of
    damages on the driver's side of the car, from the front door to the rear

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