Employees' Retirement System of Territory v. Chang

42 Haw. 532
CourtHawaii Supreme Court
DecidedMay 21, 1958
DocketNo. 3089
StatusPublished
Cited by14 cases

This text of 42 Haw. 532 (Employees' Retirement System of Territory v. Chang) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employees' Retirement System of Territory v. Chang, 42 Haw. 532 (haw 1958).

Opinion

[533]*533OPINION OE THE COURT BY

STAINBACK, J.

This is an action of interpleader brought by The Employees’ Retirement System of the Territory of Hawaii against Wah Chew Chang, a brother, and Mary K. Chang, widow, of Ah Heen Chang, and Mary K. Chang as administratrix of the estate of Ah Heen Chang, deceased, to determine who is entitled to the benefits payable by plaintiff on account of the death of Ah Heen Chang, a member of the Retirement System at the time of his death.

Wah Chew Chang claimed as the beneficiary designated by his deceased brother. Mary K. Chang, administratrix of the estate of her deceased husband, claimed as such administratrix under the provisions of section 708 (8), as amended and modified by section 718.01, Revised Laws of Hawaii 1945.

There is no dispute as to the facts set out in the complaint which are admitted by the answers. It appears from the complaint that Ah Heen Chang was a territorial employee and a member of the Employees’ Retirement System; that in 1937, while unmarried, he filed a designation of beneficiary naming his brother, Wah Chew Chang, appel[534]*534lant herein, as such beneficiary. In 1950 Ah Heen Chang married Mary K. Chang, one of the appellees herein. In 1951, Act 156, Session Laws of Hawaii 1951, was passed, amending chapter 15 of the Revised Laws of Hawaii 1945, dealing with the Employees’ Retirement System. In 1955, Ah Heen Chang died, leaving surviving Ms widow, Mary K. Chang, and several minor children. No designation of his retirement benefits had been made other than that to Wah Chew Chang in 1937. Letters of administration upon the estate of Ah Heen Chang were issued to Mary K. Chang in August 1955.

Act 156, Session Laws of Hawaii 1951, added a new section to chapter 15, Revised Laws of Hawaii 1945, which provided as follows:

“Sec. 718.01. [Named beneficiaries, effect of marriage or death. ] All nominations of beneficiaries by written designation made by one who is unmarried, or whose spouse predeceases him, shall become null and void upon the subsequent marriage of such person and such subsequent marriage shall operate as a complete revocation of such designation and all benefits payable by reason of the death of such person shall be payable to his legal representatives, unless, after such marriage, he shall have made other provision in a written designation duly executed and filed with the board.”

The court below found in favor of Mary K. Chang, administratrix, setting forth in its findings and decision, in substance, that: (1) the designation by Ah Heen Chang of his brother, Wah Chew Chang, as his beneficiary, did not create any vested right or claim in said benefits in favor of said Wah Chew Chang; (2) that benefits provided by section 708 (8), Revised Laws of Hawaii 1945, are payable in such manner as may be governed by law at the time of death of each member; and (3) that the law in effect at the death of Ah Heen Chang, section 708 (8) as [535]*535amended by Act 156, Session Laws of Hawaii 1951, and Act 12, Session Laws of Hawaii 1955, requires tbe death benefits to be paid to Mary K. Chang, administratrix of the estate of Ah Heen Chang, deceased. From this decision the brother appealed to this court.

Appellant makes two claims: (1) that Act 156, Session Laws of 1951, is prospective both “in language and in operation”; and (2) that if the construction of the court below giving this statute “retrospective operation” is adopted, then the statute is unconstitutional.

First, as to the language: While “We are not unmindful, to paraphrase Mr. Justice Frankfurter and Judge Learned Hand, that the literal words of a statute sometimes can be misleading, and that we do not stop but only begin with the words,” (Smither and Company, Inc. v. Coles, 242 F. [2d] 220, 222), yet an examination of the wording of the statute is not such as indicates the future. The words “shall become null and void” go with the words “upon the subsequent marriage”; a marriage subsequent to the designation of the beneficiary and not subsequent to the time of the enactment of the statute, or any other time. In the present case, the marriage was fifteen years “subsequent” to the naming of the beneficiary and thus comes within the wording of the statute.

However, before discussing the intent and purpose of the legislature in passing the Act, and the proper interpretation of the statute, we shall briefly touch upon the constitutionality of the Act as a “retrospective law.” Mr. Justice Story’s definition has become a classic and is as follows: “Every statute which takes away or impairs vested rights acquired under existing laws, or creates a new obligation, imposes a new duty or attaches a new disability in respect to transactions or considerations already past, must be deemed retrospective.” (2 Story, Constitution, § 1398.) This definition of Story’s is set forth in 82 [536]*536Corpus Juris Secundum, Statutes, section 412 (cited in appellant’s brief) as follows:

* * A retroactive or retrospective law, in the legal sense, is one that takes away or impairs vested rights acquired under existing laws, or creates a new obligation, imposes a new duty, or attaches a new disability in respect of transactions or considerations already past. However, a statute does not operate retroactively merely because it relates to antecedent events, or because part of the requisites of its action is drawn from time antecedent to its passing, but is retroactive • only when it is applied to rights acquired prior to its enactment.”

Clearly, the statute before us does not take away or impair any vested rights acquired under the existing Employees’ Retirement System Act. The Act in question, disposing of the retirement benefits at the death of the employee, is similar in many respects to the law relating to inheritance and wills. It is well settled that the law governing the descent of property is that in force at the time of the death of the ancestor, the rights of the heirs being considered arising as of that time. (Paulo v. Malo, 4 Haw. 536; Trust Estate of Geo. H. Holt, Deceased, 42 Haw. 129.)

In Ostrander v. Preece, 196 N. E. 670, 671, challenging the constitutionality of a statute in force at the decedent’s death, the court said:

“A legislative enactment, repealing, modifying, or changing the course of descent and distribution of property and the right to inherit or transmit property is not an unlawful interference with or deprivation of vested rights, and unless expressly inhibited by constitutional provision, is to be deemed valid.” (Case annotated 103 A. L. R. 218.)

It is unnecessary to cite many of the numerous author[537]*537itieg on the elementary proposition that the law in force at the time of the death of decedent governs the distribution of his property, whether it be the rights of heirs, of the widow, of adopted children, of legitimatized children, or of divorced people. The right of the legislature to diminish or abolish such rights in the estate of the deceased before such rights have become vested cannot be questioned.

On the question of inchoate rights of dower see 28 Corpus Juris Secundum, Dower, section 5, page 68, as follows:

“Statute controlling.

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42 Haw. 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employees-retirement-system-of-territory-v-chang-haw-1958.