United States v. Morton

467 U.S. 822, 104 S. Ct. 2769, 81 L. Ed. 2d 680, 1984 U.S. LEXIS 117, 5 Cl. Ct. 2769, 52 U.S.L.W. 4839
Supreme Court of the United States·Decided June 19, 1984·No. 83-916·Published·Cited by 480 cases

Opinion

Justice Stevens

delivered the opinion of the Court.

The question presented is whether the United States is liable for sums withheld from the pay of one of its employees because it complied with a direction to withhold those sums contained in a writ of garnishment issued by a court without personal jurisdiction over the employee.

On December 27, 1976, respondent, a Colonel in the United States Air Force, was stationed at Elmendorf Air Force Base in Alaska. On that date Elmendorf’s Finance Office received by certified mail a writ of garnishment, accompanied by a copy of a judgment against respondent that had been issued by the Circuit Court for the Tenth Judicial Circuit of Alabama in a divorce proceeding. The writ, which was in the regular form used in Alabama, directed the Air Force to withhold $4,100 of respondent’s pay to satisfy sums due under the judgment “for alimony and child support.” The Finance Office promptly notified respondent that it had received the writ. On advice from an Air Force attorney, respondent told the Finance Office that the state court’s order was void because the Alabama court had no jurisdiction over him. Nevertheless, the Finance Officer honored the writ and paid $4,100 to the Clerk of the Alabama court, deducting that amount from respondent’s pay. Subsequently additional writs of garnishment were served on the Air Force with similar results.

Respondent apparently never made any attempt to contest the garnishment itself beyond his initial protest to the Elmendorf Finance Office. 1 Eventually, however, he in ef- *825 feet collaterally attacked the garnishment by bringing this action against the United States to recover the amounts that had been withheld from his pay and remitted to the Alabama court. The Government took the position that it had a complete defense since Congress has by statute provided:

“Neither the United States, any disbursing officer, nor governmental entity shall be liable with respect to any payment made from moneys due or payable from the United States to any individual pursuant to legal process regular on its face, if such payment is made in accordance with this section and the regulations issued to carry out this section.” 42 U. S. C. §659(f).

The trial judge first noted that the Alabama writ was on the regular form used by the Alabama courts. Thus, he did not disagree with the Government’s position that the writ was “regular on its face” within the meaning of the statute. He held, however, that the writ was not “legal process” within the meaning of § 659(f) because the statutory definition of that term requires that it be issued by a “court of competent jurisdiction.” 2 He reasoned that the portion of the divorce decree ordering respondent to make alimony and child support payments had not been issued by a court of competent jurisdiction because the Alabama court did not have personal jurisdiction over respondent. Since respondent was not domiciled in Alabama at the time of the divorce proceedings, and since Alabama did not then have a statute authorizing personal service on nonresidents for child sup *826 port or alimony and could not assert jurisdiction under either its own law or the Due Process Clause because it lacked sufficient contacts with respondent, the trial judge concluded that the Alabama judgment on which the garnishment orders were based was void for lack of jurisdiction. Accordingly, the trial judge held that respondent was entitled to recover the amounts withheld from his pay from the United States.

The Court of Appeals for the Federal Circuit affirmed, 708 F. 2d 680 (1983). It concluded that when an obligor notifies the Government that the court issuing the garnishment order does not have personal jurisdiction over him, the order does not constitute “legal process regular on its face” within the meaning of the statute. Judge Nies dissented, reasoning that the statute required only that the state court have subject-matter jurisdiction to enter the writ of garnishment, and that the notice respondent had provided the disbursing officer did not affect the question whether the Alabama court was a “court of competent jurisdiction.”

Because the holding of the Federal Circuit creates a substantial risk of imposing significant liabilities upon the United States as a result of garnishment proceedings, and because the decision below created a conflict in the Circuits, 3 we granted the Government’s petition for certiorari, 465 U. S. 1004 (1984).

b-i

Ten years ago Congress decided that compensation payable to federal employees, including members of the Armed Services, should be subject to legal process to enforce employees’ obligations to provide child support or make alimony payments. Section 459(a) of the Social Services Amendments of 1974, 88 Stat. 2357-2358, was enacted as a result. As amended, it currently provides:

“Notwithstanding any other provision of law, effective January 1, 1975, moneys (the entitlement to which is *827 based upon remuneration for employment) due from, or payable by, the United States or the District of Columbia (including any agency, subdivision, or instrumentality thereof) to any individual, including members of the armed services, shall be subject, in like manner and to the same same extent as if the United States or the District of Columbia were a private person, to legal process brought for the enforcement, against such individual of his legal obligations to provide child support or make alimony payments.” 42 U. S. C. § 659(a).

In 1977 Congress amended the statute by specifying a procedure for giving notice to affected employees, directing that the normal federal pay and disbursement cycle should not be modified to comply with garnishment writs, authorizing promulgation of appropriate implementing regulations, and defining terms such as “alimony,” “child support,” and “legal process.” It also added subparagraph (f), the provision at issue in this case. See 91 Stat. 157-162. 4

I — I h — i

We assume, as does the Government, that the Alabama court lacked jurisdiction over respondent when it issued its writs of garnishment. Based on that assumption, respondent defends the judgment below by arguing that the Alabama court was not a “court of competent jurisdiction,” and hence its orders could not satisfy the statutory definition of “legal process.” 5

*828 If we were to look at the words “competent jurisdiction” in isolation, we would concede that the statute is ambiguous. The concept of a court of “competent jurisdiction,” though usually used to refer to subject-matter jurisdiction, 6

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United States v. Morton, 467 U.S. 822, 104 S. Ct. 2769, 81 L. Ed. 2d 680, 1984 U.S. LEXIS 117, 5 Cl. Ct. 2769, 52 U.S.L.W. 4839 (1984).

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