Waivers and compromises of government claims can be made. This paragraph lists the basic guidance for each action. (See Sec. 842.117(e) for claims involving waiver and compromise of amounts in excess of settlement authorities' delegated amounts.)
(a) Waiver for the convenience of the government can be made when the tort-feasor:
(1) Cannot be located.
(2) Is judgment proof.
(3) Has refused to pay and the case is too weak for litigation.
(b) Waiver can be made when collection causes undue hardhsip to the injured party. Ordinarily, factors such as the following should be considered:
(1) Permanent disability or disfigurement.
(2) Decreased earning power.
(3) Out of pocket losses.
(4) Financial status of injured party.
(5) Pension rights.
(6) Other government benefits to the injured party.
(7) An offer of settlement from a third party which includes virtually all the thirty party's assets, although the amount is considerably less than the calculation of the injured party's damages.
(c) A compromise can be made upon written request from the injured party or the injured party's legal representative when liability is questionable, the injured party received excessive treatment, or the litigation risks dictate, and either of the following occurs:
(1) The injured party accepts less than the jury verdict expectancy. When this occurs, the Air Force should consider settling its claim in a ratio similar to that which the total sttlement bears to the jury verdict expectancy.
(2) The government's claim is almost as large as, or is larger than, the assets available for settlement.