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[[page number]] 132 [[/page number]]

[[underline]] Status Report on Litigation [[/underline]]

1. [[underline]] Claims Arising out of Submarine Accident. [[/underline]]

We have been advised by the Department of Justice that the claims of the widows of the two deceased Smithsonian employees may be cognizable under the Federal Employees' Compensation Act.  If the Department of Labor (which administers the Act) concurs, this remedy would preclude recovery against the underwriters at Lloyds of London, but would provide the basis for settlement of these claims without litigation.  The opinion of the Solicitor of Labor has been requested.

2. [[underline]] Living Window, ICC, Inc. [[/underline]] v. [[underline]] James S. Ward, Inc. and the Smithsonian Institution. [[/underline]]

As reported previously, a claim was filed against the Smithsonian Institution and James S. Ward, Inc., a contractor who had agreed to furnish the Institution with a museum display apparatus.  This action was dismissed on the basis that the Federal District Court in Connecticut, where the action was filed, had no jurisdiction over the Smithsonian.  It is anticipated that the suit will be filed again in Washington, D. C.

3. [[underline]] Pierce Associates, Inc., [[/underline]] v. [[/underline]] S. Dillon Ripley and Fred Barwick, United States District Court for the District of Columbia. [[/underline]]

As previously reported, this is a suit for an injunction concerning the award of the contract for the restoration and renovation of the Arts and Industries Building.  After opening the bids for this contract, the Smithsonian was apprised by a protest that an indispensable provision had been omitted from the invitation for bids.  Upon consultation with the General Accounting Office, it was determined that the omission could not be remedied and the invitation for bids was cancelled and reissued correctly.  The initial low responsible bidder, Pierce Associates, Inc., brought this action to cancel the new invitation and to compel Smithsonian to contract with Pierce.