00-2754 U.S. v. Rand Motors, et al.

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“Rand maintains that even if the language of the settlement agreement is not ambiguous, the letter sent by the AUSA shows that the parties contemplated interest in the settlement agreement, and that this is a rare instance where a party has evidence that this meaning of the settlement agreement was shared by both parties. True, the AUSA indicated that some interest would be paid. However (and apart from the question of whether she had any authority to bind the United States to this obligation), these letters, written over a year after the settlement agreement was signed, do not indicate whether the parties anticipated interest when they entered into the settlement agreement.

“Nowhere in the settlement agreement does the government agree to pay interest on the ‘res.’ Given the history of separating damage awards from the penalty of interest, had this been contemplated, the parties surely would have expressly included interest in the agreement. Rand also cannot prevail on the theory that the AUSA letter amended the settlement agreement. First of all, the letter does not purport to amend the settlement agreement; if anything it represents an ongoing dialogue between the government and Rand. Furthermore, while Rand relies heavily on the AUSA’s letter, the AUSA did not have authority to offer Rand prejudgment interest without the consent of her supervisors. … In this case, the authority lies with the United States Attorney for the Northern District of Illinois unless delegated. This remains true even if the AUSA is not aware that her authority is limited. Id.; see also United States v. Killough, 848 F.2d 1523, 1526 (11th Cir. 1988). Therefore the AUSA letter did not modify the settlement agreement.”

Affirmed.

Appeal from the United States District Court for the Northern District of Illinois, Lindberg, J., Wood, J.