Cloutier v. Morgenthau

88 F.2d 846, 67 App. D.C. 3, 1937 U.S. App. LEXIS 3258
Court of Appeals for the D.C. Circuit·Decided January 4, 1937·No. No. 6685·Published·Cited by 1 cases

Opinion

GRONER, J.

This is a petition for mandamus. Appellant — in October-November, 1918 — was a machinist in the employ of the Minneapolis Steel & Machinery Company. The company had contracts with the United States for the manufacture of war materials for use in the World War. At that time of national peril there were demands on the part of employees of this and other contracting companies for adjustment of wages, and there were threats of strikes. To meet the situation, the President by Executive Order created the War Labor Board with power to settle “by mediation and conciliation controversies arising between the employer and workers in fields of production necessary for the effective conduct of the War,” etc. The Board had hearings and ultimately classified the employees and increased their pay, but the corporations by which they were employed refused to recognize the new rates as applicable to back wages — as the result of which the employees made claim against the government for payment of the adjusted amounts. Congress then passed the Dent Act (40 Stat. 1272, amended 42 Stat. 322, 50 U.S.C.A. § 80 note). The first four sections relate to and authorize the discharge by the Secretary of War of any agreement, express or implied, entered into during the emergency occasioned by the World War with any person “for services * * * or other purposes connected with the prosecution of the war.” Section 1.

Appellant claims the sum of $248.96, with interest from November 24, 1920, and we are told that his case is typical of 4,000 employees with claims aggregating close to a million dollars. Appellant’s petition alleges that an award was made to him for his services in accordance with the classification and rate of wage fixed by the Board; that his claim was approved by the Board and by the Secretary of War; that he has not been paid; and that under the provisions of the Dent Act he is entitled to have payment made by the Secretary of the Treasury.

There is no denial that appellant’s claim is within the terms and intent of the provisions of the Dent Act, and therefore the only questions we have to decide are whether the act clearly imposes on the Secretary of the Treasury the peremptory duty to make payment, and — if it does — whether Congress has appropriatad the money for [847] that purpose. We think both questions should be answered in the negative.

The first section of the Act provides:

“That the Secretary of War be, and he is hereby, authorized to adjust, pay, or discharge any agreement, express or implied * * * for services * * * connected with the prosecution of the war,” etc.

But there is no provision in the act authorizing or directing the Secretary of the Treasury to make payment or to do any other act or thing in connection with carrying out its purposes, and there is no special fund appropriated by the act for the payment of the claims recognized by the Secretary of War, though by section 5 (as amended by Act Nov. 23, 1921,42 Stat. 322), authorizing the Secretary of Interior to adjust claims arising out of the production of manganese, etc., $8,500,000 is set up as a revolving fund for that specific purpose. By a later act (Act of June 5, 1920, 41 Stat. 1026) Congress, however, did authorize the use until June 30, 1921, of certain unexpended War Department appropriations for the fiscal year 1918 to permit payments under the Dent Act approved by the Secretary of War. But that reservoir is now closed.

Section 2 of the act confers jurisdiction on the Court of Claims to review the action of the Secretary of War in the event of disagreement between him and the individual involved. The petition does not inform us whether appellant accepted the award approved by the Secretary of War, but we assume he did and that, therefore, he is in the position of having a claim which has been approved, as we have seen, by the different boards and by the Secretary and accepted by himself. And in that aspect he insists that payment should be made out of the general fund and that it is the duty of the Secretary of the Treasury to make payment accordingly and in this respect that the Secretary has no discretion. Appellant relies upon the case of T. A. Gillespie Co. v. U. S., 60 Ct.Cl. 923. Gillespie had a contract with the United States growing out of the prosecution of the war for which an award was made and paid. For a claim growing out of a supplemental contract, an additional claim was made and allowed, and the Secretary of War issued vouchers for payment. The “finance officer of the government” refused payment, and Gillespie sued the United States upon the award. The Court of Claims.sustained jurisdiction either, first, upon a law of Congress — the Dent Act — or, second, upon the award and acceptance as amounting to a contract with the government. The language of the opinion on which appellant relies is this:

“And it may be said that the award and acceptance do not stand alone. The act authorized the Secretary not only to ‘adjust,’ an action indicated by his award and its acceptance, but also to ‘pay.’ This meant, of course, by the usual method; not from cash in the hands of the Secretary, but by the issuance of proper vouchers to be paid by those charged with that duty.
“We need not consider whether the plaintiff might have sought a mandate to enforce the performance of a ministerial duty. That is an extraordinary remedy, and the plaintiff has seen fit to seek a legal remedy by way of judgment at the hands of this court. To this we think it entitled and have so ordered.”

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Cloutier v. Morgenthau, 88 F.2d 846, 67 App. D.C. 3, 1937 U.S. App. LEXIS 3258 (D.C. Cir. 1937).

88 F.2d 846 (Cloutier v. Morgenthau) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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