§ 604.8 - Limitation on Agency authority.

(a) An award, compromise, or settlement of a claim by the Agency under the provisions of section 2672 of the Act, in excess of $25,000, shall be effected only with the prior written approval of the Attorney General or his designee. For the purposes of this paragraph, a principal claim and any derivative claim shall be treated as a single claim.

(b) An administrative claim may be adjusted, determined, compromised, or settled by the Agency under the provisions of section 2672 of the Act, only after consultation with the Department of Justice, when, in the opinion of the Agency:

(1) A new precedent or a new point of law is involved; or

(2) A question of policy is or may be involved; or

(3) The United States is or may be entitled to indemnity or contribution from a third party and the Agency is unable to adjust the third party claim; or

(4) The compromise of a particular claim, as a practical matter, will or may control the disposition of related claim in which the amount to be paid may exceed $25,000.

(c) An administrative claim may be adjusted, determined, compromised, or settled by the Agency under the provisions of section 2672 of the Act, only after consultation with the Department of Justice when the Agency is informed or is otherwise aware that the United States or an employee, agent or cost-plus contractor of the United States is involved in litigation based on a claim arising out of the same incident or transaction.