Loucke v. United States

21 F.R.D. 305, 1957 U.S. Dist. LEXIS 4507
CourtDistrict Court, S.D. New York
DecidedNovember 20, 1957
StatusPublished
Cited by22 cases

This text of 21 F.R.D. 305 (Loucke v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loucke v. United States, 21 F.R.D. 305, 1957 U.S. Dist. LEXIS 4507 (S.D.N.Y. 1957).

Opinion

HERLANDS, District Judge.

Plaintiff is seeking to recover the sum of $10,000 as beneficiary of her deceased son, pursuant to the Servicemen’s Indemnity Act of 1951, 38 U.S.C.A. § 851. Plaintiff filed a claim for the full amount before the Veterans Administration. The Administration, however, awarded plaintiff only half of the proceeds and awarded the other half to plaintiff’s divorced husband, the father of the deceased. This determination was affirmed by the Veterans Administration Board of Appeals.

Plaintiff then brought an action in this Court to recover the full amount of the policy. The Government moved to dismiss the complaint.

The Court granted the motion on January 10, 1956, on the ground that the Court lacked jurisdiction because awards of the Veterans Administration under the provisions of the Servicemen’s Indemnity Act of 1951 are not subject to judicial review. In granting the motion to dismiss, the Court relied on decisions in the First, Fifth and Sixth Circuits. There was no authority on the point at that time in this Circuit. Plaintiff did not appeal from the dismissal of the complaint.

Thereafter, in a similar case, the Court of Appeals for this Circuit held that such awards were subject to judicial review. Wilkinson v. United States, 2 Cir., 1957, 242 F.2d 735, certiorari denied 78 S.Ct. 52.

Plaintiff now moves to vacate the decision of January 10, 1956, pursuant to Fed.Rules Civ.Proc., rule 60(b) (5) and (6), 28 U.S.C.A. In her moving affidavit, plaintiff states that she failed to appeal the January 10, 1956, decision because she “was in no position to pay the expenses of such appeal.” Plaintiff’s attorney has submitted an affidavit to the same effect.

F.R.C.P., rule 60(b) (5) and (6), under which plaintiff seeks relief, provides that “the court may relieve a party * * * from a final judgment, [or] order” if “a prior judgment upon which it is based has been reversed or otherwise vacated” [clause “5”] for “any other reason justifying relief from the operation of the judgment” [clause “6”].

Clause (5) does not apply to the instant case because the January 10, 1956, decision was not based on any judgment that was subsequently reversed. Berry-hill v. United States, 6 Cir., 1952, 199 F.2d 217.

In Berryhill, the District Court had held that a foster sister was not a person who could be a beneficiary under the National Service Life Insurance Act, 38 U.S.C.A. § 801 et seq. Subsequently, the Supreme Court reversed a case in another Circuit, not relied on by the said District Court, and held that a foster brother could be a beneficiary under that Act. Thereafter, the plaintiff in the same District Court moved to set aside the judgment pursuant to, inter alia, Rule 60(b) (5). The District Court denied the motion and was affirmed by the Court of Appeals. The Court of Appeals reasoned that the District Court judgment had not been based on a prior judgment that had been vacated, and that it was not the purpose of Rule 60(b) (5) to permit a final judgment to be set aside whenever a case involving similar facts and holding the same way is thereafter reversed.

The same view is expressed in 7 Moore, Federal Practice, para. 60.26 [3], p. 282:

“* * * it [60(b) (5)] does not authorize relief from a judgment on the ground that the law applied by the court in making its adjudication has been subsequently overruled or declared erroneous in another and unrelated proceeding.”

Plaintiff, relying on clause (6) of F.R.C.P., rule 60(b), argues that, since the Court’s decision herein was not [308]*308an adjudication on the merits, her present motion should be granted because “to do otherwise would require the plaintiff to institute another action and would cause loss of time, hardship and unnecessary effort on the part of the litigants” (Plaintiff’s brief, p. 5). As noted, plaintiff’s affidavits assert that plaintiff’s failure to appeal was caused by her financial inability.

The mere allegation of lack of financial means, by itself, does not justify the opening of a judgment under Rule 60(b) (6), where the party had failed to appeal the prior adjudication. In Ackermann v. United States, 1950, 340 U.S. 193, 71 S.Ct. 209, 95 L.Ed. 207, a deportation case, the moving parties who were attempting to set aside a judgment —which, due to a subsequent decision of an appellate court, would have been reversed had it been appealed — based their motion on the grounds that they had not been able to afford to appeal and that they had been assured by a Government official that they would not be deported after the war. The Supreme Court noted the practice of the Court of Appeals to allow poor persons, who were not paupers, to appeal “at a very small cost” (340 U.S. at page 199, 71 S.Ct. at page 212). The Supreme Court found the circumstances were not so “extraordinary” (340 U.S. at pages 200, 202, 71 S.Ct. at pages 212, 213) as to bring the case within Rule 60(b) (6).

Prior to Ackermann, the Supreme Court in Klapprott v. United States, 1949, 335 U.S. 601, 69 S.Ct. 384, 93 L.Ed. 266, modified 336 U.S. 942, 69 S.Ct. 384, 93 L.Ed. 1099, allowed a motion under Rule 60(b) (6), to set aside a default judgment where the indigent petitioner was sick and unable to work, was being prosecuted almost simultaneously on other criminal charges, and was being held in Federal custody before the expiration of the time for him to answer the denaturalization proceedings. The petitioner also made efforts to appear or to have some one appear for him in the denaturalization case. See, also, United States v. Karahalias, 2 Cir., 1953, 205 F.2d 331.

The principle expounded in these cases is that only where the total record portrays extraordinary circumstances— of which the litigant’s lack of financial means is only one factual element — may a party who failed to appear or appeal resort to the extreme remedy afforded by Rule 60(b) (6). See 7 Moore, Federal Practice, para. 60.27[2].

In the interstices of such procedural provisions as Rule 60(b) is expressed the law’s transcendant concern with the doing of practical justice. We have been warned not to harden the arteries of such “liberalizing rules like 60(b)” by resorting “to ancient common-law concepts.” Mr. Justice Black, dissenting, in the Ackermann case, supra, 340 U.S. at page 205, 71 S.Ct. at page 215.

But this rule was not designed to supersede the normal and ordinary channels of relief. Nor was it intended to invest the court with an omnipotence whose boundary is defined only .by the court’s conscience.

Considerations of judicial administration and of the stability of the law no less than the obligation of doing individual equity must be balanced and adjusted. An explicit choice of values is represented by the landmark decision in the Ackermann case, supra.

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Bluebook (online)
21 F.R.D. 305, 1957 U.S. Dist. LEXIS 4507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loucke-v-united-states-nysd-1957.