United States v. Worley, No. 548

• Court: United States Supreme Court
• Writing for the Court: BUTLER
• Citation: 50 S.Ct. 291,281 U.S. 339,74 L.Ed. 887
• Parties: UNITED STATES v. WORLEY
• Docket Number: No. 548
• Decision Date: 14 April 1930

281 U.S. 339 50 S.Ct. 291 74 L.Ed. 887 UNITED STATES

v.

WORLEY.

No. 548. Argued March 4, 5, 1930. Decided April 14, 1930.

Mr. Clarence T. Spier, of Omaha, Neb., for administratrix.

Mr. Claude R. Branch, of Providence, R. I., for the United States.

Mr. Justice BUTLER delivered the opinion of the Court.

The deceased enlisted in the army April 2, 1917, and was discharged March 18, 1918. He obtained insurance for $10,000, payable in the event of death or total permanent disability at the rate of $57.50 per month. Act of October 6, 1917, 40 Stat. 398, 409. The contract was in force when he was discharged. He presented to the Veterans' Bureau a claim for permanent total disability from

Page 340

that date. It was rejected December 29, 1926. He died January 7, 1927.

April 23, his mother as administratrix brought this action in the United States court for Nebraska to recover on account of his disability from the date of discharge to the time of his death. 38 U. S. C. § 445 (38 USCA § 445). July 6 she intervened as beneficiary to recover installments maturing after his death. There was a verdict on which, October 31, 1928, judgment was entered in her favor as administratrix for.$6,095 and as beneficiary for $3,905. Later the District Court entered a supplemental judgment that as beneficiary she was then entitled to $1,265 on account of the installments falling due before the original judgment; that the balance, $2,640, should be paid at the rate of $57.50 per month commencing November 1, 1928; that she have interest on all installments from the dates on which they became due to the date of judgment and thereafter interest on the amount of the judgment; and that she recover costs. The United States appealed. The Circuit Court of Appeals certified the four questions which are given below. 28 U. S. C. § 346 (28 USCA § 346).

1. Upon the facts stated (in the certificate), does the United States, as matter of law, stand in the position of one who has gone into the business of insurance, and must therefore be assumed to have accepted the ordinary incidents of suits in such business?

Apparently, this question was suggested by language in our decision in Standard Oil Co. v. United States, 267 U. S. 76, 79, 45 S. Ct. 211, 69 L. Ed. 519. While the answer sought might aid in the determination of the proper application of that opinion, it is not necessary for the decision of the case. The question is one of objectionable generality. United States v. Mayer, 235 U. S. 55, 66, 35 S. Ct. 16, 59 L. Ed. 129. It need not be answered.

2. May judgment be entered against the United States for the amounts of insurance installments maturing after the action was instituted?

Page 341

Undoubtedly, when one's right to recover is established by judgment, the Veterans' Bureau will pay him installments maturing in his favor after the commencement of the action. It therefore is a matter of no practical importance whether the installments maturing between date of intervention and entry of the judgment be included. But the certificate does not disclose any supplemental petition in respect of such installments, and the judgment should not include them. Hamlin, Hale & Co. v. Race, 78 Ill. 422; Carter-Crume Co. v. Peurrung (C. C. A.) 99 F. 888, 890.

Section 514, tit. 38, U. S. C.¹ (38 USCA § 514), provides that, if the designated beneficiary does not survive the insured or dies prior to receiving all of the 240 installments, or all such as are payable and applicable, the present value of the monthly installments thereafter payable shall be paid to the estate of the insured. A judgment for the designated beneficiary for all installments thereafter to mature would not protect the United States against a claim by the estate of the insured for any installments falling due after the death of the beneficiary. The judgment should not govern payment of installments later to mature.

The question should be answered in the negative.

3. Is interest allowable against the United States upon the monthly installments from the date they are found to be due?

The rule is that the United States will not be required to pay interest except...