CFR > Title 32 - National Defense > SUBTITLE A—Department of Defense > CHAPTER VI—DEPARTMENT OF THE NAVY (parts 700 to 777) > SUBCHAPTER E—CLAIMS (Parts 750–757) > PART 757—AFFIRMATIVE CLAIMS REGULATIONS > SUBPART B—Medical Care Recovery Act (MCRA) Claims and Claims Asserted Pursuant to 10 U.S.C. 1095 (§757.11 to §757.20) > 757.19—Waiver and compromise.

757.19—Waiver and compromise.

(a) General. OJAG Code 15 (Claims and Tort Litigation) may authorize waiver or compromise of any claim that does not exceed $100,000.00. NLSO EURSWA may agree to compromise or waive claims for $40,000.00 or less. NLSO EURSWA claims in excess of $40,000.00 may be compromised or waived only with Code 15 approval.
(b) Waiver and compromise. The JAG designee may waive the Federal government's MCRA interest when a responsible third-party tortfeasor cannot be located, is judgment proof, or has refused to pay and litigation is not feasible. Waiver or compromise is also appropriate when, upon written request by the injured person or legal representative, it is determined that collection of the full amount of the claim would result in undue hardship to the injured person. In assessing undue hardship, the following should be considered:
(1) Permanent disability or disfigurement;
(2) Lost earning capacity;
(3) Out-of-pocket expenses;
(4) Financial status;
(5) Disability, pension and similar benefits available;
(6) Amount of settlement or award from third-party tortfeasor or contract insurer; and
(7) Any other factors which objectively indicate fairness requires waiver.

Code of Federal Regulations

[57 FR 5072, Feb. 12, 1992, as amended at 72 FR 53430, Sept. 19, 2007]