5
With passage of the Panama Canal Act of 1979, canal operations
returned to the control of an appropriated fund federal agency.
Consequently, Congress readopted the scheme of liability that had
existed from 1940 to 1951, but increased the amount above which
outside-the-locks claims had to be sent to Congress -- from $60,000 to
$120,000. As with the pre-1951 scheme, claimants for damage outside
the locks may not sue on their claim in court. The settlement of the
Commission is final.
ISSUES AND OPTIONS
A. Status of Pending Claims
The Committee is aware that at least 11 claims for damage outside
the locks exceeding $120,000 have been filed against the Commission
since October 1, 1979 (the effective date of the Panama Canal Act of
1979). Only two of these claims have been forwarded to Congress, and
those were sent on November 10 of this year. One of the issues to be
addressed at the hearing is the cause of the delay in processing these
claims and submitting them to Congress. It may be that the claims
procedure, at least with respect to this type of claim, is unduly
cumbersome and in need of adjustment. Another possibility is that
part of the delay is attributable to claimants. If this is true, and
if these delays are causing problems for the Commission, perhaps the
imposition of a statute of limitations on the filing of claims should
be considered.
B. Claims Accounting Methods
Section 1602(b) of the Act, 22 U.S.C. 3792(b), requires canal
tolls to cover all costs of canal operation. Since the payment of
claims is a cost of canal operation, the canal toll base includes an
amount for claims. Each year, $12 million in tolls is set aside for
the eventual payment of claims. Of this amount, the Commission
allocates $6 million to pay claims for damage inside the locks and to
pay outside-the-locks damage where the claim is less than $120,000.
There is no question about the propriety of this practice, since the
Commission clearly has authority to pay these claims.
The other $6 million annually is allocated to outside-the-locks
claims exceeding $120,000. The issue is whether the Commission should
be collecting $6 million a year in tolls to pay these claims when
section 1415(b) of the Act, 22 U.S.C. 3775(b), specifically prohibits
the Commission from adjusting or paying them. Section 1415(b) states:
"(b) The Commission shall not adjust and pay any claims for
damages for injuries arising by reason of the presence of the
vessel in the Panama Canal or adjacent waters outside the
locks where the amount of the claim exceeds $120,000 but
shall submit the claim to the congress in a special report
containing the material facts and the recommendation of the
Commission thereon."