United States v. Borcherling

185 U.S. 223, 22 S. Ct. 607, 46 L. Ed. 884, 1902 U.S. LEXIS 2230, 37 Ct. Cl. 553
CourtSupreme Court of the United States
DecidedApril 14, 1902
Docket150
StatusPublished
Cited by28 cases

This text of 185 U.S. 223 (United States v. Borcherling) 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
United States v. Borcherling, 185 U.S. 223, 22 S. Ct. 607, 46 L. Ed. 884, 1902 U.S. LEXIS 2230, 37 Ct. Cl. 553 (1902).

Opinion

*231 Me. Justice Shieas

delivered the opinion of the court.

The facts and law of this case were so fully and satisfactorily discussed in the court below that its opinion might well be adopted as that of this court. 35 O. Cl. 311.

¥e shall, however, briefly examine some of the propositions urged in the brief of the Government filed in the case.

The first and principal contention is that the United States is a sovereignty and has absolute control of the manner in which it shall pay its debts, the persons to whom they shall be paid, and, in fact, whether they shall be paid or sued upon at all; that it is incompetent for the State of New Jersey, through a statute or a decree of its courts, to direct to whom such a debt shall be paid; that the United States, through comity, may or may not recognize such a New'Jersey statute or decree, as it may determine, but without such recognition such statute or decree is inoperative upon the disposition of such debt; that the United States does not recognize, through comity, the passing of title to a claim against it to a receiver appointed under a state statute or decree, and that consequently', in the present case, the United States had a right to pay the debt to the original creditor, and was discharged by such payment. _ .

It is not necessary for us to consider whether the power of the United States over debts due by it and over the mode by which such debts shall be paid is wholly unrestricted, because the United States has not chosen to stand upon its sovereignty in such-particulars, but has provided in the act of March 3,1887, c. 359, that the Court of Claims and, concurrently, the District and Circuit Courts of the United States, “ shall have jurisdiction to hear and determine all claims founded upon the Constitution of the United States or any law of Congress, except for pensions, or upon any regulation of any executive department, or upon any contract, express or implied, with the government of the United States, or for damages, liquidated or unliquidated, in cases not sounding in tort, in respect-of which claims the party would be entitled to redress against the United States either in a court of law, equity or admirality, if the United States were suable.”

*232 .This is not a case within the category of payments by way of gratuity, payments as of grace and not of right, as was the case of Emerson’s Heirs v. Hall, 13 Pet. 409, and where it was said by Mr. Justiee McLean: “ A claim having no foundation in law, but depending entirely on the generosity of the government, constitutes no basis for the application of any legal principle. It cannot be assigned. It does not go to the administrator as' assets.- It does not descend to the heir. And if the government, from motives of public policy, or any other considerations, shall think proper, under such circumstances, to •make a grant of money to the heirs of the claimant, they receive it as a gift or pure' donation — a donation made, it is true, in reference to some meritorious act of their ancestor, but which did not constitute á matter of right against the government. In the present case the government might have directed the money to be paid to the creditors of Emerson, or to any part of his heirs. Being the donor, it could, in the exercise of its discretion, make such distribution or application of its bounty as circumstances might require.' And it has', under the title of an act ■ for the relief of the heirs of Emerson,5 directed,.in the body of the act, the money to be paid to his legal representatives. That the heirs were intended by this designation is clear; and we think the- payment which has been paid to them under this act has been rightfully made; and that the fund cannot be considered as assets in their hands for the payment of debts.”

This distinction between mere grants by the government by way of gratuity and debts or claims of right was likewise recognized by this court in the. French spoliation cases, where it was held that the payments prescribed by the acts of Congress were gratuities, and that creditors, legatees and assignees' in bankruptcy could be rightfully excluded. Blagge v. Balch, 162 U. S. 439.

Here the government was not the donor of the money of Price, but was its custodian, avvaiting its lawful distribution.

As to the contention that the debt due from the United States to Price could not be transferred from Price to the claimant by operation of the laws of New Jersey, nor by any. decree that *233 the courts of New Jersey, operating under such laws, could make, it is sufficient to say that this court has held otherwise.

In Vaughn v. Northrup, 15 Pet. 1, Mr. Justice Story, de-, livering the opinion of the court, said: “ The debts due from the government of the United States have no locality at the seat of government. ■ The United States in their sovereign capacity have no particular place of domicile, but possess, in contemplation of law, an ubiquity'throughout the United States; and the debts due by therh are not to be treated like the'debts of a private debtor, which constitute local assets in his own domicile,” and accordingly it was held, in that case, that “ the administrator of a creditor of the governmeát duly appointed in the State where the creditor was domiciled at the time of his death, has full authority to receive payment and give a full discharge of the debt due his intestate in any place where the government may choose to pay it, whether it be at the seat of government or at any other place where the public funds are deposited; and that moneys so received constituted assets under that administration, for which he was accountable to the proper tribunals of the State' where he was appointed.”

Price v. Forrest, 173 U. S. 410, was'one phase in the present controversy. There the question was between the heirs of Rod-man M, Price and Borcherling, who had been appointed by the Chancery Court of New Jersey receiver of the assets of Price, including the money belonging to him in the Treasury of the United States.' It was'held by the courts of New Jersey that the receiver was entitled to the money in the Treasury, and the heirs and administrator of Price were enjoined from demanding or receiving, from the Secretary of the Treasury, or any officer thereof, the* said ’ money or any part thereof. The cause was brought to this court, .and, after full consideration, the decree of the Court of Errors and Appeals of .the State of New Jersey was affirmed. .Two things were thus determined — first, generally, that it was competent for a state court of the domicil of a creditor of the United States, and having jurisdiction over his person, to decide a controversy between his heirs and creditors as to the right to receive moneys held in trust by the United *234

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Bluebook (online)
185 U.S. 223, 22 S. Ct. 607, 46 L. Ed. 884, 1902 U.S. LEXIS 2230, 37 Ct. Cl. 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-borcherling-scotus-1902.