Lufkin v. United States

168 F. Supp. 451, 1 Fed. R. Serv. 2d 1060, 1958 U.S. Dist. LEXIS 3325
CourtDistrict Court, D. New Hampshire
DecidedJuly 10, 1958
DocketCiv. A. No. 1872
StatusPublished
Cited by3 cases

This text of 168 F. Supp. 451 (Lufkin v. United States) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lufkin v. United States, 168 F. Supp. 451, 1 Fed. R. Serv. 2d 1060, 1958 U.S. Dist. LEXIS 3325 (D.N.H. 1958).

Opinion

CONNOR, District Judge.

Plaintiff, a resident of New Hampshire, brings an action under the War Risk Insurance Act of 1917, 40 Stat. 409, and the World War Veterans’ Act of 1924, 43 Stat. 607, as amended, 38 U.S.C.A. § 445.

The plaintiff alleges that he was issued a War Risk Insurance policy, which was renewed effective August 1, 1947, with monthly premiums of $21.70. He further alleges that a disagreement exists between the plaintiff and the Veterans’ Administration as to whether or not such policy was properly declared to have lapsed effective February 1, 1951. In addition, plaintiff alleges that he “made a proper notice of his claim that such policy should not have been declared lapsed and has asserted a claim to a right to reinstate this contract of insurance by filing several applications for reinstatement.” These claims were denied by final administrative action by the Board of Veterans’ Appeals on August 5, 1954.

The defendant, United States of America, moves to dismiss the complaint on the grounds of (1) failure to state a claim upon which relief can be granted, (2) lack of jurisdiction and (3) improper venue because the Administrator of Veterans’ Affairs may not be sued in his official capacity in any district other than the District of Columbia. The United States, in its brief, in addition argues that the petition improperly asks for coercive relief against a governmental agency.-

In support of its motion to dismiss for lack of jurisdiction, the government relies heavily on the case of Meadows v. United States, 1930, 281 U.S. 271, 50 S.Ct. 279,. 74 L.Ed. 852, and the cases which cite it. In this case, the plaintiff brought an action against the United States in a federal district court to require reinstatement of a lapsed insurance policy. The policy was allowed to lapse for about three years. The petitioner sought reinstatement under what is now Title 38, section 515, asserting that he was suffering from a disability of a degree less than permanent and total. The court held that this was not a suit on a “claim * * * under a contract of insurance,” under section 4451 but was a suit under the reinstatement statute, section 515, and therefore dismissed the action for lack of jurisdiction. The court stated:

[Section 445] has nothing to do with an application for reinstatement of a defunct policy. The right to reinstatement, when it exists flows from the statutory provision [453]*453and not from any undertaking expressed in the contract of insurance. * * * 281 U.S. at page 274, 50 S.Ct. at page 280.

The instant case is altogether different. From a reading of the complaint, it is clear that there was a disagreement with the Veterans’ Administration from the very beginning as to whether the policy had lapsed or not. Certainly there is nothing to indicate that the petitioner voluntarily and admittedly caused the policy to lapse. Although the petitioner states that he filed several applications for reinstatement, this was merely the procedure used to obtain review of the Administration’s decision that the policy had lapsed. It is difficult to find anything in the regulations providing for any other method of obtaining relief. Regulation 38, of the Code of Federal Regulations, has a provision for filing original applications (section 8.0), and a provision for filing for reinstatement (section 8.22), but no specific regulation providing for protest of the Administration’s decision that the policy had lapsed. As a matter of fact, in Mitchell v. United States, D.C., 111 F. Supp. 104, in a situation similar to the instant case, the Veterans’ Administration advised the plaintiff that the policy had lapsed and then informed him that an application for reinstatement should be made.

This is a “claim * * * under a contract of insurance” within the meaning of section 445, even though the Veterans’ Administration disputes the fact that a contract is in existence. Section 445 surely does not mean that only claims which are admitted by the Veterans’ Administration can be adjudicated; section 445 has a separate clause for adjudicating admitted claims in the nature of interpleader. Furthermore, section 445c states that a “disagreement” includes a “denial of a claim for insurance” by the Veterans’ Administration. This is convincing evidence that a contract of insurance recognized by the Veterans’ Administration is not a prerequisite to the jurisdiction of the district court.

After the Meadows case, there have been numerous cases involving more or less similar factual situations. In the majority of them, the courts held that there was no jurisdiction, although many felt that the plaintiff ought to have some judicial remedy.

One of the few cases which held that there was jurisdiction was Unger v. United States, D.C.Ill.1948, 79 F.Supp. 281. This case is not in point because it involved subchapter I of the National Service Life Insurance Act, chapter 13, 38 U.S.C.A. § 801 et seq., and has no application to a chapter 10 proceeding such as the instant case.2

Mitchell v. United States, D.C.N.J. 1952, 111 F.Supp. 104, 106, is cited by the United States to support its contention that jurisdiction does not exist. It is factually similar to the instant case, but is distinguishable. The plaintiff brought suit seeking an adjudication that an insurance policy under the National Service Life Insurance Act was valid, but he admitted failure to pay a monthly premium because of illness. An application for reinstatement, on the advice of the Veterans’ Administration, had been filed and the court considered it to be a petition for reinstatement within the meaning of the Meadows ease, and not a “disagreement” under section 445. The court made the statement that:

“Neither has this court jurisdiction to entertain the action against the United States because [section 445], the only statute which ex[454]*454pressly vests United States District Courts with jurisdiction over suits against the United States * * * is limited to suits for recovery of monetary benefits upon policies which are in force and effect and does not include an action brought for the reinstatement of a policy which has lapsed, such as the case with which we are here confronted.”

This statement seems to be an incorrect interpretation of section 445. First, nothing in the section limits jurisdiction to actions for monetary benefits. It expressly allows suit for refund of premiums, which doubtless are not “benefits.” Second, section 445c stating that a denial of a claim is a “disagreement” implies that a policy need not be “in force and effect” to sustain jurisdiction.

Ginelli v. United States, D.C.Mass. 1950, 94 F.Supp. 874, is inapposite because there, plaintiff sought to revive a policy which admittedly lapsed shortly after October 1, 1945. Plaintiff sought reinstatement in November, 1947. There was no allegation, as in the instant case, that the plaintiff disagreed with the Veterans’ Administration’s determination that the policy had lapsed in the first place.

United States v. Fitch, 10 Cir., 1950, 185 F.2d 471, is likewise not in point. There, the plaintiff disputed the Administrator’s denial of an application for reinstatement after a two month lapse. There was no claim that the Administrator was incorrect in declaring the policy lapsed in the first place.

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Bluebook (online)
168 F. Supp. 451, 1 Fed. R. Serv. 2d 1060, 1958 U.S. Dist. LEXIS 3325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lufkin-v-united-states-nhd-1958.