MARTIN L. C. FELDMAN, District Judge.
Before the Court is the plaintiff's motion for summary judgment to enforce the settlement agreement. For the reasons that follow, the motion is DENIED.
This personal injury lawsuit arises from Kevin Hughes's claim that he was injured during a car accident involving a government vehicle on May 14, 2013. Hughes sued the United States under the Federal Tort Claims Act on May 1, 2014. Following a settlement conference with Magistrate Judge Wilkinson on March 26, 2015, the parties agreed to settle the case for $40,000.00. On March 27, 2015, the Court entered an Order of Dismissal in which the Court retained jurisdiction to enforce the settlement agreement.
When the United States Department of the Treasury received the settlement agreement signed by both parties, it issued a check to Hughes in the amount of $40,000. However, the Department of Treasury was statutorily obligated to offset the amount pursuant to 31 U.S.C. §3716. The Department of Treasury identified the United States Department of Education and the Office of the Attorney General as the government agencies collecting the plaintiff's outstanding debt in the amount of $39,259.66. Therefore, the plaintiff received a check in the amount of $740.34.
The plaintiff now seeks to enforce the settlement agreement; he seeks the full $40,000 settlement amount.
Federal Rule of Civil Procedure 56 instructs that summary judgment is proper if the record discloses no genuine dispute as to any material fact such that the moving party is entitled to judgment as a matter of law. No genuine dispute of fact exists if the record taken as a whole could not lead a rational trier of fact to find for the non-moving party.
The Court emphasizes that the mere argued existence of a factual dispute does not defeat an otherwise properly supported motion.
Louisiana law indicates that a compromise settles only those differences that the parties clearly intended to settle, including the necessary consequences of that they express.
The plaintiff seeks summary judgment to enforce the settlement. He contends that he is entitled to summary judgment to enforce the settlement agreement for three reasons: (1) the settlement agreement clearly states the United States has to pay $40,000 and they only paid $740, (2) the offset was not required, and (3) alternatively, the United States cannot seize the attorney's fee and costs. The United States opposes the motion because (1) it met all settlement obligations, (2) the plaintiff, and not the United States, is solely indebted to any third parties who rendered services to plaintiff, and (3) objections to whether a debt is valid for purposes of offset are properly addressed to the agency owed the debt. The Court agrees.
First, the plaintiff contends that the settlement agreement obliges the United States to pay him $40,000. Because the settlement agreement clearly states that the United States agreed to pay $40,000, it did not comply by sending a $740 check. The defendant counters that the plaintiff's objections are properly addressed to those agencies to whom he owes a debt, and that the United States has fully complied with the settlement agreement by arranging for the Treasury to issue payment for $40,0000. The Court agrees.
The plaintiff's motion fails as a matter of law. 31 U.S.C. § 3716 states in part:
This statute authorizes the Department of Treasury to operate debt collection trough the Treasury Offset Program. Treasury disburses federal payments as the disbursing agency for federal agencies making federal payments, and federal agencies which are owed debts are required to refer those debts to Treasury for inclusion in the Treasury Offset Program. 31 U.S.C. §3701 defines an administrative offset as withholding funds payable to satisfy a claim. Once a debt is submitted for administrative offset, Treasury, as the disbursing agency and operator of the Treasury Offset Program, is required to offset a payment to satisfy the debt. 31 U.S.C. §3716(c)(1)(A). Settlement funds constitute a federal payment. 31 C.F.R. 285.5(e)(1). (Unless exempted in 31 C.F.R. 285.5(e)(2), all federal payments are eligible for offset and "include, but are not limited to . . . judgments . . . and other payments made by Federal agencies."). Offset is a mandatory, non-discretionary function.
Therefore, when the United States Department of Education and the Office of the Attorney General submitted for administrative offset to the Treasury Offset Program
Second, the plaintiff contends, in the alternative, that his counsel is entitled to his contingent fee, as well as to receive reimbursement for costs advanced in prosecution of this case; counsel contends that Kevin Hughes is not the outright owner of that portion of the withheld funds. Invoking state law, La. R. S. 37:218,
Third, insofar as the plaintiff seeks to vacate an action taken by a non-party, the Department of Treasury, through a motion for summary judgment against the defendant, the proper party to address in the case of offset is the agency to which the debtor owes the debt, not the Treasury Department.
Accordingly, for the foregoing reasons, IT IS ORDERED that the motion for summary judgment and motion to enforce settlement is DENIED.