Moncrief v. Hobby

133 F. Supp. 152, 1955 U.S. Dist. LEXIS 2859
CourtDistrict Court, D. Maryland
DecidedJuly 29, 1955
DocketCiv. A. No. 7905
StatusPublished
Cited by5 cases

This text of 133 F. Supp. 152 (Moncrief v. Hobby) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moncrief v. Hobby, 133 F. Supp. 152, 1955 U.S. Dist. LEXIS 2859 (D. Md. 1955).

Opinion

CHESNUT, District Judge.

The plaintiff in this case, the widow of James Gilbert Moncrief, filed a claim with the Federal Security Administration for herself and as mother and guardian of Patricia Y. Moncrief, a minor, for social security benefits. After extended consideration of the claim at various administrative levels, it was finally denied by the Department on the ground that it was not authorized by the applicable statute, 42 U.S.C.A. § 417(e). The complaint in this case was filed to reverse this administrative determination. The authority and jurisdiction for consideration of the case is given by 42 U.S.C.A. § 405(g).

The case has been argued by counsel for the parties on the complaint and answer in which the controlling facts are stated without contradiction. Both parties have separately filed motions for summary judgment. The controlling and undisputed facts can be briefly stated.

James Gilbert Moncrief was born September 27, 1909, in Alabama. He was 43 years of age at the time of his death which occurred on October 2, 1952. He enlisted in the United States Navy February 10, 1930, and served therein continuously until November 18, 1949, when he was released from active duty and transferred to “Fleet Reserve” status with constructive credit of 20 years in the Navy. He thus became entitled to and did receive the retainer pay authorized by 34 U.S.C.A. § 854c. While on reserve status he was employed civilly and earned total compensation of $897.73 over a period of about six months (that is two quarters of a year) until April 1, 1952. Under his status in the Fleet Reserve he remained subject to recall to active naval duty, 34 U.S.C.A. § 854d, and he was in fact recalled to [154]*154such active duty on April 12, 1952. While so engaged and stationed at Bainbridge Naval Training Center in Maryland, he died on October 2, 1952. At that time his wife, the plaintiff in this case, and his minor child then about 8 years of age were dependent upon him. The plaintiff filed her claim for social security benefits on January 22, 1943. The claim was based on section 417(e) (1) enacted July 18, 1952. There was, however, an exception expressly written into the section which provided that it should not be applicable if—

“a benefit * * * which is based, in whole or in part, upon the active military or naval service of such veteran on or after July 25, 1947 and prior to January 1, 1954, is determined by any agency or wholly owned instrumentality of the United States (other than the Veterans Administration) to be payable by it under any other law of the United States or under a system established by such agency or instrumentality”.

In response to request for certification regarding payments on account of the veteran the Navy Department certified that an award had been approved for the veteran, Moncrief, for a monthly or other periodic payment which had been “based in whole or in part on military or naval service of the veteran in the Armed Forces of the United States during the period of July 25, 1947 through December 31, 1953”. This certificate was dated September 25, 1953. It will be found in the record as Exhibit No. J filed with the defendant’s answer. The reasons for the final rejection of the claim were stated in a written opinion of the Appeals Council of the Social Security Administration dated September 29, 1954, which, after reviewing the facts, stated the reason for the rejection was—

“because service wage credits could not be given in these cases, since the wage earner’s active naval service including both the' World War II period and post World War II period have been used, in whole or in part, for Naval retirement purposes. It is clear here that the wage earner’s naval service extended into both such periods, and that another portion of the same period could not, under the provisions of section 217 (a) (sic) of the Social Security Act as amended, be used for the establishment of wage credits for social security purposes. The transfer of the wage earner into the Fleet Naval Reserve under the above circumstances is considered a retirement for social security purposes, and the retainer pay he received while in the Fleet Reserve is regarded as retirement pay. Therefore, the disallowance of these applications which is consistent with long established procedure is for the reasons as stated above, and not because the Navy Department made its usual lump-sum payment of six months’ death gratuity pay as inadvertently stated by the Referee.” See pages 2 and 3 of the record filed with the answer.

The case here must be determined by the proper application of section 417(e) (1) to the undisputed facts of this case. The pertinent part of the section reads as follows:

“§.417(e) (1), enacted in 1952: “For purposes of determining entitlement to and the amount of any monthly benefit or lump-sum death payment payable under this sub-chapter on the basis of the wages and self-employment income of any veteran (as defined in paragraph (4) of this subsection), such veteran shall be deemed to have been paid wages (in addition to the wages, if any, actually paid to him) of $160 in each month during any part of which he served in the active military or naval service of the United States on or after July 25, 1947, and prior to January 1, 1954. This subsection shall not be applicable in [155]*155the case of any monthly benefit or lump-sum death payment if—
“(A) * * *
“(B) a benefit (other than a benefit payable in a lump sum unless it is a commutation of, or a substitute for, periodic payments) which is "based, in whole or in part, upon the active military or naval service of ■such veteran on or after July 25, 1947, and prior to January 1, 1954, is determined by any agency or wholly owned instrumentality of the United States (other than the Vet■erans’ Administration) to be payable by it under any other law of the United States or under a system established by such agency or instrumentality.”

The contention of the defendant is that the excepting clause is so clear and unambiguous and plainly worded that the mere application of its language to the undisputed facts shows that the claim is unfounded. On the other hand counsel for the plaintiff contends that the legislative history of the particular section shows that it must be construed to include provision for social security benefits to the plaintiff and that the excepting clause must be read by interpolating in subehapter (B) of the excepting clause the words “same period of” so that it will read:

“(B) a benefit * * * which is based, in whole or in part, upon the same period of active military or naval service of such veteran on or after July 25, 1947, and prior to January 1, 1954”;

and if the interpolation is so made it will be consistent with the intention of Congress as expressed in the section which was enacted July 18, 1952. The ultimate question, therefore, is whether the court is authorized by judicial construction to add these words to the statute as enacted by Congress.

To more fully understand the precise point involved it is necessary to refer to some background history, not only the particular legislative history of the section but also ’' to gome'outstanding facts of nátional history occurring in the last twenty years. '

The Social Security System, first enacted by Congress in 1935, and sustained in constitutional principle by the Supreme Court of the United States in Chas. C. Steward Mach. Co. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
133 F. Supp. 152, 1955 U.S. Dist. LEXIS 2859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moncrief-v-hobby-mdd-1955.