Larson v. Domestic and Foreign Commerce Corp.

337 U.S. 682, 69 S. Ct. 1457, 93 L. Ed. 2d 1628, 1949 U.S. LEXIS 2935
CourtSupreme Court of the United States
DecidedOctober 10, 1949
Docket31
StatusPublished
Cited by1,687 cases

This text of 337 U.S. 682 (Larson v. Domestic and Foreign Commerce Corp.) 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
Larson v. Domestic and Foreign Commerce Corp., 337 U.S. 682, 69 S. Ct. 1457, 93 L. Ed. 2d 1628, 1949 U.S. LEXIS 2935 (1949).

Opinions

Mr. Chief Justice Vinson

delivered the opinion of the Court.

This suit was brought in the United States District Court for the District of Columbia by the Domestic & Foreign Commerce Corporation against Robert M. Little-john, the then head of the War Assets Administration.1 The. complaint alleged that the Administration .had sold certain surplus coal to the plaintiff; that the Administrator refused to deliver the coal but, on the contrary, had entered into a new contract to sell it to others. The .prayer was for an injunction prohibiting the Administrator from selling or delivering the coal to anyone other than the plaintiff and for a declaration that the sale to the plaintiff was valid and the sale to the second purchaser invalid.

A temporary restraining order was issued ex parte. At the subsequent hearing on the issuance of a preliminary injunction, the defendant moved to dismiss the complaint on the ground, among others, that the court did not have jurisdiction because the suit was one against the United [685]*685States. The motion was granted. The Court of Appeals reversed, holding that the jurisdictional capacity of' the court depended on-whether or not title to the coal had passed.2 Since this was also one of the questions on the merits, it remanded the case for trial. We granted certiorari.3 333 U. S: 872.

The controversy on the merits concerns the interpretation to be given to the contract of sale. The War Assets Administration construed the contract as requiring the plaintiff to deposit funds to pay for the coal in advance and, when an unsatisfactory letter of credit was offered in place of a deposit, it considered that the contract was breached. The respondent, on the other hand, construed the contract as requiring payment only on delivery of the documents covering the coal shipment. In its view, it was not obliged to deposit any funds in advance of shipment and, therefore, had not breached the contract by failing to do so.

A second question, related to but different from the question of breach, was whether legal title to the coal had passed to the respondent when the contract was made. If the contract required the deposit of funds then, of course, title could not pass until the contract terms were complied with. If, on the other hand, the contract required payment only on the delivery of documents, a question remained as to whether title nevertheless passed at the time the contract was made. .

Since these questions were not decided by the courts below we do not pass on them here. They are important only insofar as they illuminate the basis on which it [686]*686Was claimed that the district court had jurisdiction over the suit. It was not alleged that the contract for. the sale of the coal was a contract with the officer personally.4 The basis of the action, on the contrary, was that a contract had been entered into with the United States. Nor was it claimed that the Administrator had any personal interest in this coal or, indeéd, that he himself had taken any wrongful action. The complaint was directed against him because of his official function as chief of the War Assets Administration.5 It asked for an injunctión against him in that capacity, and against “his agents, assistants, deputies and employees and all persons acting or assuming to act under their direction.” The relief sought was, in short, relief against the Administration for wrongs allegedly committed by subordinate officials in that Administration. The question presented to the courts below was whether such an injunction was barred by the sovereign’s immunity from suit.

Before answering that question it is perhaps advisable to state clearly what is and what is not involved. There is not involved any question of the immunization of Govérnment officers against responsibility for their wrongful .¿actions. If those actions are such as to create a personal liability, whether sounding in tort or in contract, the fact that, the officer is an instrumentality of the sovereign does not, of course, forbid a court from taking jurisdiction over a suit against him. Sloan Shipyards v. U. S. Fleet Corp., 258 U. S. 549, 567 (1922). As was said in Brady [687]*687v. Roosevelt S. S. Co., 317 U. S. 575, 580 (1943), the principle that an agentjs liable for his own'.torts “is an ancient one and applies 'even to certain act's of public officers or public instrumentalities.” But the existence of a right to sue the officer is not the issue, in this case. The issue here is whether this particular suit is not also, in effect, a suit against the sovereign. If it is, it must fail, whether or not the officer might otherwise be suable.

If the denomination of the party defendant by the plaintiff were the sole test of whether a suit was against the officer individually or against his principal, the sovereign, our task would be easy.- Our decision then would be that the United States is not being sued here because it is not named-as, a party. This would be simple and would not leave room for controversy. But controversy there has been, in this field above all others, because it has long been established that the crucial question is whether the relief sought in a suit nominally addressed to the officer is relief against the sovereign.6 In a suit against the officer to recover damages for the agent’s personal actions,' that question is easily answered. The judgment sought will not require action by the sovereign or disturb the sovereign’s property. There is, therefore, no jurisdictional difficulty.7 The question becomes difficult [688]*688and the area of controversy is entered when the suit is not one. for damages but for specific relief: i.■ e., the recovery of specific property or monies, ejectment from land, or injunction either directing or restraining the defendant officer’s actions. In each such case the question is directly posed as to whether, by obtaining relief against the officer, relief will not, in effect, be obtained against the sovereign. For the sovereign can act only through agents and, when an agent’s actions are restrained, the sovereign itself may, through him, be restrained. As indicated, this question does not arise because of any distinction between law and equity. It arises whenever suit is brought against an officer of the sovereign in which the relief sought from him is not compensation^ for an alleged wrong but, rather, the prevention or discontinuance, in rem, of the wrong. In each such case the compulsion, which the court is asked to impose, may be compulsion against the sovereign, although nominally directed against the individual officer. If it is, then the suit is barred, not because it is a suit against an officer of the Government, but because it is, in substance, a suit against the Government oyer which the court, in the absence of consent, has ho jurisdiction.

The relief sought in this case was not the payment of damages by the individual defendant.8 To the contrary, [689]*689it was asked that the court order-the War Assets Administrator, his agents, assistants,' deputies and .employees and all persons acting under their direction, not to sell the coal involved and not to deliver it to anyone other than the respondent.9 The district court held that this was relief against the.

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Cite This Page — Counsel Stack

Bluebook (online)
337 U.S. 682, 69 S. Ct. 1457, 93 L. Ed. 2d 1628, 1949 U.S. LEXIS 2935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-domestic-and-foreign-commerce-corp-scotus-1949.