PREC 7-94    Set-Off of Federal Tort Claims Act Damages -- 38 U.S.C. § 1151      Citation: Vet. Aff. Op. Gen Couns. Prec. 7-94, VAOPGCPREC 7-94, 1994

QUESTION PRESENTED:

Does the amount of a Federal Tort Claims Act settlement to be set off against benefits payable under 38 U.S.C. § 1151 include the amount of attorney fees paid out of the settlement proceeds?

HELD:

When an individual is awarded a judgment or enters into a compromise on a Federal Tort Claims Act claim subject to 38 U.S.C. § 1151, that individual's future veterans' dis-

ability compensation benefits based on the same disability must be offset by the entire amount of the judgment or settlement proceeds, including the amount of any attorney fees paid out of such proceeds.