[Code of Federal Regulations]
[Title 32, Volume 5, Parts 700 to 799]
[Revised as of  July 1, 1998]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR756.4]

[Page 433]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
Part 756--NONAPPROPRIATED-FUND CLAIMS REGULATIONS--Table of Contents
 
Sec. 756.4  Responsibility.

    The primary responsibility for the negotiation and settlement of 
claims resulting from nonappropriated-fund activities is normally with 
the NAFI and its insurer. NAFI's, however, are Federal agencies within 
the meaning of the Federal Tort Claims Act if charged with an essential 
function of the Department of the Navy and if the degree of control and 
supervision by the Navy is more than casual or perfunctory. Compare 
United States v. Holcombe, 277 F.2d 143 (4th Cir. 1960) and Scott v. 
United States, 226 F. Supp. 846, (D. Ga. 1963). Consequently, to the 
extent sovereign immunity is waived by the Federal Tort Claims Act, 28 
U.S.C. 1346(b), 2671-2672, 2674-2680, the United States remains 
ultimately liable for payment of NAFI claims.