Kolovrat v. Oregon

366 U.S. 187, 81 S. Ct. 922, 6 L. Ed. 2d 218, 1961 U.S. LEXIS 1232
CourtSupreme Court of the United States
DecidedMay 1, 1961
Docket102
StatusPublished
Cited by229 cases

This text of 366 U.S. 187 (Kolovrat v. Oregon) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kolovrat v. Oregon, 366 U.S. 187, 81 S. Ct. 922, 6 L. Ed. 2d 218, 1961 U.S. LEXIS 1232 (1961).

Opinion

Mr. Justice Black

delivered the opinion of the Court.

Joe Stoich and Muharem Zekieh died in Oregon in December 1953 without having made wills to dispose of personal property they owned in that State. Their only heirs and next of kin, who but for being aliens could have inherited this Oregon property under Oregon law, were brothers, sisters, nieces and nephews who were all residents and nationals of Yugoslavia. But § 111.070 of the Oregon Revised Statutes rather severely limits the rights of aliens not living in the United States to “take” either real or personal property or its proceeds in Oregon “by succession or testamentary disposition.” 1 And subsec *189 tion (3) of the same Oregon statute provides that where there are no next of kin except ineligible aliens and the deceased made no will, the property of the deceased shall be taken by the State as escheated property.

The State filed petitions under this provision in an Oregon Circuit Court to take for itself the personal property of both decedents, 2 alleging that there were no next of kin eligible to take under Ore. Rev. Stat. § 111.070. The answers filed by the Yugoslavian relatives and the San Francisco Consul General of that country (who are petitioners here) alleged that “in fact and in law reciprocal rights of inheritance as prescribed by ORS 111.070 did exist” between the United States and Yugoslavia when the decedents died and that the Yugoslavian relatives therefore were eligible to take under Oregon law. After hearings in which evidence was taken, the trial court found that the reciprocal right of inheritance required by § 111.070 (l)(a) did exist and that, both at the time the two deceased died and at the time of the trial, there existed “rights of citizens of the United States to receive payment to them within the United States ... of moneys originating from the estates of persons dying within the country of Yugoslavia” as required by § 111.070 (l)(b). The State Supreme Court reversed, holding that petitioners had failed to prove “the ultimate fact” that there existed “as a matter of law an unqualified and enforceable right to receive as defined by ORS 111.070.” 3 It found instead that such an unqualified right did not exist because the laws of Yugoslavia give discretion to Yugoslavian authorities to control foreign exchange payments in a way that might prevent Americans from receiving the full value of Yugoslavian inheritances. It was accordingly held that Oregon state law standing alone barred *190 these Yugoslavian nationals from inheriting their relatives’ personal property in Oregon.

The state court went on to say that this holding disposes of petitioners’ claims “[ujnless the area of alien succession over which the state of Oregon seeks to control through ORS 111.070, supra, has been preempted by some treaty agreement subsisting between Yugoslavia and the United States” at the time of the decedents’ death. On this point the court said:

“We are mindful that rights of succession to property under local law may be affected by an overriding federal policy when a treaty makes different or conflicting arrangements. In such event, the state policy must give way. Clark v. Allen, 331 US 503, 517 . . . .” 220 Ore. 448, 462, 349 P. 2d 255, 262-263.

Thus, recognizing quite properly that state policies as to the rights of aliens to inherit must give way under our Constitution’s Supremacy Clause to “overriding” federal treaties and conflicting arrangements, the state court considered petitioners’ contention, supported in this Court by the Government as amicus curiae, that petitioners were entitled to inherit this personal property because of an 1881 Treaty between the United States and Serbia, which country is now a part of Yugoslavia. The state court rejected this contention on the basis of its interpretation of the Treaty although it correctly recognized that the Treaty is still in effect between the United States and Yugoslavia. 4 The state court also rejected petitioners’ contention that their claims could not be defeated solely because of the possible effect of the Yugoslavian Foreign *191 Exchange Laws and Regulations since those laws and regulations admittedly meet the requirements of the Bretton Woods Agreement of 1945, 5 to which both Yugoslavia and the United States are signatories. We granted certiorari because the cases involve important rights asserted in reliance upon federal treaty obligations. 364 U. S. 812.

Eor reasons to be stated, we hold that the 1881 Treaty does entitle petitioners to inherit personal property located in Oregon on the same basis as American next of kin and that these rights have not been taken away or impaired by the monetary policies of Yugoslavia exercised in accordance with later agreements between that country and the United States.

I.

The parts of the 1881 Treaty most relevant to our problem are set out below. 6 The very restrictive meaning *192 given the Treaty by the Oregon Supreme Court is based chiefly on its interpretation of this language:

“In all that concerns the right of acquiring, possessing or disposing of every kind of property . . . citizens of the United States in Serbia and Serbian subjects in the United States, shall enjoy the rights which the respective laws grant ... in each of these states to the subjects of the most favored nation.”

This, the State Supreme Court held, means that the Treaty confers a right upon a United States citizen to acquire or inherit property in Serbia only if he is “in Serbia” and upon a Yugoslavian citizen to acquire property in the United States only if he is “in the United States.” The state court’s conclusion, therefore, was that the Yugoslavian complainants, not being residents of the United States, had no right under the Treaty to inherit from their relatives who died leaving property in Oregon. This is one plausible meaning of the quoted language, but it could just as plausibly mean that “in Serbia” all citizens of the United States shall enjoy inheritance rights and “in the United States” all Serbian subjects shall enjoy inheritance rights, and this interpretation would not restrict almost to the vanishing point the American and Yugoslavian nationals who would be benefited by the clause. We cannot accept the state court’s more restrictive interpretation when we view the Treaty in the light *193 of its entire language and history.

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Bluebook (online)
366 U.S. 187, 81 S. Ct. 922, 6 L. Ed. 2d 218, 1961 U.S. LEXIS 1232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolovrat-v-oregon-scotus-1961.