(5) Major overseas command staff judge advocate. The staff judge advocate of U.S. Army Forces Southern Command; the U.S. Army, Europe; the U.S. Army, Pacific, and any command outside the continental limits of the contiguous states specially designated by The Judge Advocate General under the provisions of § 536.4b of this part.

(6) Army staff judge advocate. The staff judge advocate of each of the numbered armies in the continental United States; the Military District of Washington, U.S. Army; and U.S. Army, Alaska.

(7) Recovery judge advocate. Any staff judge advocate or judge advocate (SJA/JA) who has been assigned responsibility for processing claims under §§ 537.21-537.24 for a specific geographic area is a "recovery judge advocate" (RJA).

§ 537.22 Basic considerations.

(a) The right of recovery—(1) Applicable law. The right of the United States to recover the reasonable value of medical care furnished or to be furnished an injured party is based on the Federal Medical Care Recovery Act. It accrues simultaneously with the accrual of the injured party's right to recover damages from the prospective defendant but is independent of any claim which the injured person may have against the prospective defendant. Recovery is allowed only if the injury or diseases resulted from circumstances creating a tort liability under the law of the place where the injury occurred.

(2) Time limitation. The Act of 18 July 1966 (28 U.S.C. 2415 et seq.) establishes a 3-year statute of limitation upon actions in favor of the United States for money damages founded upon a tort. The RJA will take appropriate steps within the limitation period to assure that necessary legal action is not barred by the statute.

(3) Amount. The Government's right of recovery is limited to amounts expended or to be expended by the United States for medical care from other than Federal sources, and to amounts determined by the rates established by the Director of the Bureau of the Budget, for medical care from Federal sources, less any

amounts reimbursed by the injured party.

(b) Certain prospective defendants— (1) U.S. Government agencies. No claim will be asserted against any department, agency, or instrumentality of the United States.

(2) U.S. personnel. Claims against a member of the uniformed services; or an employee of the United States, its agencies or instrumentalities; or a dependent of a service member or an employee will not be asserted unless the prospective defendant has the benefit of liability insurance coverage or was guilty of gross negligence or willful misconduct. If simple negligence occurring in the scope of a member's or employee's employment is the basis of the claim, no claim will be asserted if such claim is excluded from the coverage of the liability insurance policy involved.

(3) Government contractors. Claims, the cost or expense of which may be reimbursable by the United States under the terms of a contract, will not be asserted against a contractor without the prior approval of The Judge Advocate General. Such claims will be investigated and the report thereof, which will include citation to the specific contract clauses involved and recommendations regarding assertion, will be forwarded through command channels to The Judge Advocate General, Attention: Chief, Litigation Division Department of the Army, Washington, DC 20310.

(4) Foreign persons. Claims within the scope of §§ 537.21-537.24 against foreign prospective defendants will be investigated, processed, and asserted without regard to the nationality of the prospective defendant. Claims against an international organization, or foreign government, will be investigated and reports thereof, together with recommendations regarding assertion and enforcement, will be forwarded through command channels to The Judge Advocate General, Attention: Chief, Litigation Division, Department of the Army, Washington, DC 20310.

(c) Concurrent claims under other regulations—(1) Section 537.1. Claims for medical care and claims for damage to Army property arising from

the same incident will be consolidated and processed by the RJA under § 537.1 as a single claim. Nevertheless, the provisions of §§ 537.23(a) and 537.24(a)(1), (c), and (d) will apply to the medical care portion of the claim. If an RJA lacks settlement authority sufficient to settle a concurrent claim under § 537.1, he may request additional authority under that section from the appropriate Army or major overseas command staff judge advocate, who may delegate such additional authority in an amount not exceeding his own settlement authority. Where time is of the essence, telephonic delegations of authority are encouraged, provided they are confirmed in a writing which will be made a part of the case file.

(2) Counterclaims. Claims for medical care and claims against the United States which arise from the same incident will be consolidated and processed by the RJA under §§ 537.21537.24 and other appropriate regulations. If an RJA lacks authority sufficient to settle the claim against the Government, he will coordinate his action with that claims echelon which has the necessary authority to settle the particular claim against the United States.

(d) Claims for less than $100. Such claims need not be asserted or otherwise processed, unless the facts and circumstances surrounding the incident indicate that collection will be economically feasible (e.g., a clear case of liability covered by insurance) or desirable in the best interests of the United States.

§ 537.23 Predemand procedures.

(a) Relations with the injured party-(1) Advice. The injured party, or, in appropriate cases, his guardian, next-of-kin, personal representative, or the executor or administrator of his estate, will be advised of the following:

(i) That under the Act of September 25, 1962 (76 Stat. 593, 42 U.S.C. 2651-3, the United States may be entitled to recover the reasonable value of medical care furnished or to be furnished him in the future from the person or persons who injured him, or who were otherwise responsible for his injury or disease; and

(ii) That if he is otherwise entitled to legal assistance under AR 608-50, he should seek guidance from a legal assistance officer regarding any claim he may have for personal injury; and

(iii) That he is required to cooperate in the prosecution of all actions of the United States against the person or persons who injured him; and

(iv) That he is required to furnish a complete statement regarding the facts and circumstances surrounding the incident which resulted in the injury or disease; and

(v) That he is required to furnish information concerning any legal action brought or to be brought by or against the prospective defendant, or to furnish the name and address of the attorney representing him; and

(vi) That he should not execute a release or settle any claim which may have as a result of his injury without first notifying the RJA.

(2) Statement. A written statement will be obtained from the injured party, or his representative, in which he acknowledges receipt of the advice in paragraph (a)(1) of this section, and provides the information required by paragraphs (a)(1) (iv) and (v) of this section. If the injured party or representative fails or refuses to furnish necessary information or cooperation, the originator of the notification of potential claims may be requested to withhold records as to medical history, diagnoses, findings, and treatment, from the injured party or anyone acting on his behalf pending compliance with the requirements in paragraph (a)(1) of this section. Mere refusal by the injured party or his representative to include the Government's claim in his claim is not sufficient basis, by itself, for this action.

(b) Determination and assertion—(1) Liability. The RJA will review all the evidence including any claims officer's report of investigation and, after assuring completeness of the file, will make a written determination as to the liability of the prospective defendant and note his reasons for such determination.

(2) Value. If the RJA determines that the prospective defendant is liable, he will also ascertain the reasonable value of medical care fur

nished or to be furnished to the injured party, in accordance with § 537.22(a)(3) and rates establishes by the Bureau of the Budget. When a military member has been retained in a military hospital for administrative reasons, or where the patient was absent from the hospital or was in a purely convalescent status, the amount of the claim will be recomputed to apply the outpatient rate, if under circumstances warranting only outpatient treatment in a civilian hospital or eliminate such periods altogether if the injured party received no treatment during those periods. In making these determinations the RJA will coordinate with the registrar or other responsible official of the hospital or medical unit in his area of responsibility.

(3) Amount. In the event of doubt concerning the extent of medical care furnished or to be furnished an injured party, the RJA will assert the claim in an indefinite amount. Demand will be made in a definite amount at the earliest possible date, based on an estimate of a reasonable value of medical care to be furnished, if appropriate. The RJA will assure that the file contains complete statements of the value of medical care furnished, including all charges by civilian physicians, medical technicians and civilian hospitals.

§ 537.24 Post demand procedures.

(a) Coordination with the injured party's claim. (1) Every effort will be made to coordinate action to collect the claim of the United States with the injured party's action to collect his own claim for damages, in order that the injured party's recovery for his damages, other than the reasonable value of medical care furnished or to be furnished by the United States, is not prejudiced by the Government's claim.

(2) Attorneys representing an injured party may be authorized to assert the Government's claim as an item of special damages in their client's claim or suit. Any agreement to this effect will be in writing, and the agreement should expressly recognize the fact that counsel fees may be neither paid by the Government (5 U.S.C.

3106) nor computed on the basis of the Government's portion of the recovery. Attorneys may withdraw from such agreements on reasonable notice.

(3) If the injured party, denial or his attorney or legal representative, fails or refuses to cooperate in the prosecution of the claim of the United States, independent collection action will be vigorously pursued.

(b) Independent collection action. Unless suit between the injured party and the prospective defendant is pending, all available administrative collection procedures will be followed prior to reference of the claim to the Department of Justice under paragraph (e) of this section. Direct contact with the prospective defendant's insurer, if known, is desirable. If the prospective defendant is an uninsured motorist, timely and appropriate action will be taken to collect the claim, or to request suspension of driving and registration privileges under the applicable uninsured motorist fund statute, or to seek compensation from the victim's insurer, or otherwise under financial responsibility laws.

(c) Delegation of authority. Subject to the provisions of paragraphs (d) and (e)(1)(i) of this section, authority to compromise or waive, in whole or in part, claims of the United States not in excess of $20,000 is delegated as follows:

(1) A recovery judge advocate is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $3,500; and

(ii) Waive claims for the convenience of the Government (but not on account of undue hardship upon the injured party), provided the uncollected amount of the claim does not exceed $1,000.

(2) An Army staff judge advocate is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $5,000; and

(ii) Waive claims for the convenience of the Government (but not on account of undue hardship upon the injured party), provided the uncollected amount of the claim does not exceed $5,000.

(3) The staff judge advocate of a major overseas command is authorized to:

(i) Compromise claims, provided the compromise does not reduce the claim by more than $10,000; and

(ii) Waive claims for the convenience of the Government (but not on account of undue hardship upon the injured party) provided the uncollected amount of the claim does not exceed $10,000.

(4) For claims not in excess of $20,000 The Judge Advocate General or his designee is authorized:

(i) To compromise without limitation; and

(ii) To waive, in whole or in part— (a) For the convenience of the Government, or

(b) If he determines that collection thereof would result in undue hardship upon the injured party.

(d) Compromise and waiver of claims (1) General. A debtor's liability to the United States arising from a particular incident will be considered as a single claim in determining whether the claim is not more than $20,000, for the purpose of comproImise or waiver. Claims not settled by payment in full, compromise payment, waiver for the convenience of the Government, or reference to the Department of Justice, will be forwarded to The Judge Advocate General, Attention: Chief, Litigation Division, Department of the Army, Washington, DC 20310. A claim file forwarded to higher authority will contain a memorandum of opinion supported by necessary exhibits.

(2) Compromise. (i) The authority delegated in paragraph (c) of this section to compromise claims will be exercised in accordance with standards set forth in Part 103, Appendix A, AR 27– 41. When available funds are insufficient to satisfy both the claim of the United States and that of the injured party, the claim of the United States will be compromised to the extent required to achieve an equitable apportionment of the available funds.

(ii) If appropriate, a request by the injured party or his attorney for waiver on the ground of undue hardship may be treated initially as a suggestion for compromise with the tort

feasor, and the compromised amount of the claim of the United States will be determined. In such cases, RJA's may make offers of compromise within their delegated authority. RJA's may also make counteroffers within their delegated authority to offers of compromise beyond their delegated authority. If settlement within the limits of delegated authority is not achieved, the claim will be referred to higher authority.

(iii) When time is a factor, Army or major overseas command staff judge advocates may make telephonic delegation within their compromise authority on a case by case basis. When such verbal delegations are made, they will be confirmed in writing and the writing included in the case file.

(3) Waiver. (i) The authority delegated in paragraph (c) of this section to waive claims for the convenience of the Government will be exercised in accordance with standards set forth in section 104.3, appendix A, AR 27–41.

(ii) If the injured party or his attorney requests waiver of the full or any compromised amount of the claim on the ground of undue hardship, and the request may not be appropriately treated under paragraph (d)(2)(ii) of this section, the file will be forwarded to The Judge Advocate General, Attention: Chief, Litigation Division, Department of the Army, Washington, DC 20310. For the purpose of evaluation of the request for waiver, the file will include detailed information concerning the reasonable value of the injured party's claim for permanent injury, pain and suffering, decreasing earning power, and other items of special damages, pension rights, and other Government benefits accruing to the injured party; and the present and prospective assets, income, and obligations of the injured party, and those dependent on him.

(iii) In the event an affirmative determination is made by The Judge Advocate General that, as a result of the collection of the Government's claim the injured party has suffered an undue hardship, the RJA will be authorized to direct issuance of the amount waived to the injured party.

(4) A file forwarded to higher authority for waiver or compromise con

(2) Travelers' checks issued by the American Express Company; Bank of America, National Trust and Savings Association; Mellon National Bank and Trust Company; Citibank of New York; Thomas Cook and Son (Bankers) Ltd.; and the First National Bank of Chicago, when expressed in United States dollars.

(3) United States military disbursing officers' payment orders.

(4) American Express Company money orders, when expressed in United States dollars, and United States postal money orders.

(5) Telegraphic money orders, when expressed in United States dollars.

(b) Military Payment Certificate (MPC). The military payment certificate is an instrument, denominated in U.S. dollars and fractions thereof, that may be used as the official medium of exchange in U.S. military establishments located in overseas areas when such areas are designated as "Military Payment Certificate Areas."

(c) Authorized Personnel. As used herein, the term "authorized personnel" means all individuals authorized to purchase goods, supplies and services from U.S. Government sponsored and controlled facilities located and operated in an MPC area.

§ 538.2 Use of military payment certificates.

(a) Areas in which used. Military payment certificates are to be used only in the Department of Defense by authorized personnel in designated MPC areas. A Military Payment Certificate Area is a particular foreign country(s), or a specific area within a foreign country, that has been officially authorized for designation as an MPC area.

(b) Disbursement of military payment certificates. Military payment certificates will be disbursed to authorized personnel for all items of pay and allowances and for all other authorized payments to individuals in and under the Department of Defense. (c) Facilities in which used. Military payment certificates are the only authorized medium of exchange in the following facilities:

(1) Army, Navy, and Air Force sales and services installations and activities.

(2) Theaters and other entertainment facilities operated by Department of Defense.

(3) Officers' and enlisted personnel messes and clubs, including American Red Cross installations.

(4) Army, Navy, and Air Force postal installations for purchase of postal money orders and stamps, and cashing of postal money orders.

(5) Contribution to all authorized charitable appeals, church collections, and chaplain's funds when remittance is to be forwarded to the United States through Department of Defense channels.

(6) Payments to all travel agencies, radio, cable, telegraph, and telephone companies, and all other similar facilities when remittance is to be forwarded to the United States through Department of Defense channels.

(7) All other official agencies, quasiofficial and private agencies of or