Affirmative AtoN Claims

1. Affirmative AtoN Claims Presented by:Ninth District Legal Office

2. Overview • Federal law authorizes the Coast Guard to collect from private parties the cost of repair or replacement of damaged aids to navigation and other Coast Guard property. The CG is further authorized to reimburse in the year of recovery the CG account (cutter, MSO, CEU, ISC, etc.) bearing the cost of replacement.

3. Legal basis for claim • Federal statutes 33 USC §408 and 33 USC §412 hold vessel owner’s strictly liable for their vessel’s allision with a Coast Guard aid to navigation, for all repair or replacement costs. • USC 14 §86 hold vessel owner’s liable for cost of marking obstructions in navigable waterways.

4. The first and most important step in the process is you! • Encourage reporting of discrepancies. • Conduct immediate and thorough investigations. • Keep a record of time and resources used to complete repairs. • Follow-up on all reports of vandalism, and if available get a copy of marine police or other reports from local authorities. • Notify District (oan) of potential claims.

5. What can we do better? • Locate and properly notify potential debtors of the Coast Guard’s claim against them. • Initially obtain complete and accurate information.

6. DISCREPANCY MESSAGES STANDARD FORMAT – ATON DISCREPANCY FM (Reporting Unit) TO (Responsible Group) INFO (District/oan/) and cognizant MLC (lc) SUBJ: ATON DISCREPANCY / ATON DISCREPANCY CORRECTION 1. AID NAME (Current light list number and ATONIS ID number or river system) A. NATURE OF DISCREPANCY (Extinguished, destroyed, missing, off station, damaged, struck, vandalized, etc.) B. REPORTING SOURCE (POC, call sign of vessel, or CG unit the discrepant aid with date and time of the report.) C. IF THE AID IS DAMAGED BY A VESSEL, AND THE VESSEL IS KNOWN, PROVIDE AS MUCH OF THE FOLLOWING AS POSSIBLE: Name and official documentation number of vessel, name and address of owner and operator, phone numbers, and witnesses, if any. D. REQUEST NTM. BT

7. Conducting the investigation • References: • Claims & Litigation Manual, Chapter 2, COMDTINST M5890.9 • Administrative Investigations Manual, COMDTINST M5830.1

8. Claims for the government • Prompt and complete initial administrative investigations are required to validate billing cost of repair/replacement of CG property. • Timely unit notification to MLC(lc) has lead to more than $500K annually in recovery of funds that are reimbursed to the unit expending the initial cost.

9. Responsibility • The Commanding Officer or Officer-in-Charge of the unit on which the incident occurred, shall investigate the incident, when CG property is lost, damaged or destroyed that may give rise to a claim in favor of the U.S.

10. The claim investigation • The CO/OIC appoints a Claims Investigating Officer (IO). • The Claims Investigating Officer’s investigation shall have priority over other collateral duties. • The IO gathers facts in an impartial manner and organizes them into an accurate and concise format, usually a LetterIncident Report.

11. Gathering information • Positive identification of the responsible party is the single most important information. Get SSN or tax ID number of the owner/company immediately. • Request log entries, witness statements, copies of ATONIS and any other pertinent information, I.e. weather, VTS tracking, marine casualty reports, and related ATON discrepancy msgs.

12. Letter incident report • A Claims Investigating Officer shall prepare a written report of the investigation identifying the persons, places, and things involved and describing what occurred. • It shall begin as follows: “This investigation is being conducted and this report is being prepared in contemplation of litigation and to assist attorneys, acting on behalf of the Chief Counsel, representing interests of the United States Coast Guard.”

13. The LIR must confirm the accuracy of the following: VESSEL: • Name • Documentation Number • State Registration Number and/or hull ID Number • Description of the vessel, including any damage

14. OWNER: • Name • Current mailing and billing address • Current phone number • Taxpayer ID number • OPERATOR/MASTER: • Name • Current address • Current phone number • WITNESSES: • Name • Current address • Current phone number

15. Completing the LIR • Remember only facts need be presented, do not add opinions. • Attach copies of log entries, the itemized list of repair costs, weather conditions, and specific AtoN damaged. • Forward to District (oan) or Area (Aoww) to generate bill.

16. Damage claim information is gathered at District. They are usually alerted to a pending claim by the ATON DISCREPANCY message. • The case package is prepared. A letter is mailed to the owner of the responsible vessel alerting them of the pending claim. A letter is mailed to CG FINCEN (ogr) who generates and mails a bill to the owner. • The owner’s either pay the bill or dispute it. If disputed or if FINCEN is unable to collect for any reason, it is forwarded to MLC Claims and Litigation for further collection efforts. • At this time a request will go to the unit for a copy of the Letter Incident Report. • If unable to collect at MLC the bill is then forwarded to the Department of Treasury. This is where the need for TIN is so important.

17. Common reasons that cases are rejected or dropped • Incomplete documentation • Conflicting information, wrong LLNR or ATONIS information • Lack of log entries from unit receiving discrepancy notification • District (oan) does not receive timely notice of potential claim

18. Thank You! Contact information: Ninth District Legal Office 1240 East 9th Street Cleveland, Ohio 44199-2060 (216) 902-6010 (216) 902-6055 fax