United States v. Shannon

342 U.S. 288, 72 S. Ct. 281, 96 L. Ed. 2d 321, 1952 U.S. LEXIS 2537
Supreme Court of the United States·Decided January 28, 1952·No. 47·Published·Cited by 110 cases

Opinions

Mr. Justice Clark

delivered the opinion of the Court.

This case brought here on writ of certiorari1 tests the validity under the Anti-Assignment Act, R. S. § 3477,2 of an assignment of a claim against the United States for property damage. In an effort to escape the prohibition of that Act, respondents joined their assignors, Mrs. Kathleen Boshamer et al.,3 as well as the United States as parties defendant. The District Court, holding the assignment to be “of full force and effect,” entered judgment for respondents against the United States alone. The Court of Appeals affirmed, 186 F. 2d 430.

The Boshamers owned, in addition to adjoining land which they leased to the United States, two one-acre tracts of land not under lease on which were located two houses and a barn. During January and February, 1945, these buildings were damaged by soldiers of the United States. On April 30, 1946, the Boshamers agreed to sell the entire tract — including both the léased and unleased [290] portions — to respondents Samuel and W. L. Shannon, and in that instrument agreed that “after completion of the sale and after delivery of the deed, the sellers hereby release to the purchasers any claim, reparation, or other cause of action against the United States Government for any damage caused the property . . . .”4

Respondents brought the present action under the Federal Tort Claims Act, 28 U. S. C. (Supp. IV) § 1346 (b).5 In their complaint respondents alleged that the Boshamers “have a cause of action against the United States of America and since they have assigned this cause of action to [respondents] for a valuable consideration and since they must prosecute this action in their own names they are equitably liable to [respondents] for the amount of any judgment that they may recover against the United States of America,” and further alleged that the Boshamers had “refus[ed] to aid [respondents] in recovering the damages to which [respondents] are entitled.” 6 The Boshamers filed an answer stating that they had made the assignment but -“are without knowledge or information as to any damages done . . . and . . . have been unwilling to institute or prosecute a damage suit against their Government for something they have no knowledge of.” 7 At the trial respondents admitted that all of the damage had occurred before the claim had been assigned to them, and that they had known of the damage at the [291] time of the assignment. The District Court, however, held the Anti-Assignment Act inapplicable on the ground . that the joinder of the assignors prevented any possible prejudice to the Government, since “[tjhe rights of all of the possible claimants and of the United States will be finally adjudicated in this one suit.” 8

The Court of Appeals affirmed, believing that the assignment had resulted from a “mutual mistake as to the law,” and holding that: '

“Relief is granted, not merely because [respondents] are assignees, nor even because the vendors have been made parties to the suit, but because of the mistake that led to the making of the assignment, which was a part of the consideration for the purchase price paid by [respondents] for the land conveyed to them. The relief is given to the assignees, not as a matter of law, but as a matter of equity because of the mistake involved and the hardship which would otherwise result.” 186 F. 2d 430, 434.

We cannot agree.' In our view the judgment is based entirely on the assignment, v/hich falls clearly within the ban. of the Anti-Assignment Act. -We have recently had occasion to review the Act’s purposes. In United States v. Aetna Surety Co., 338 U. S. 366, 373 (1949), we stated that “[i]ts primary purpose was undoubtedly to prevent persons of influence from buying up claims against the /United States, which might then be improperly urged upon officers of the Government,” and that a second purpose was “to prevent possible multiple payment of claims, to make unnecessary the investigation of alleged assignments, and to enable the Government to deal only with the original claimant.” Other courts have found yet another purpose of the statute, namely, to save to the United States “defenses which it has to claims by an as[292] signor by way of set-off, counter claim, etc.,-which might not be. applicable to an assignee.” 9

In the Aetna case’, supra, this Court reaffirmed the principle that the statute does not' apply to assignments by operation of law, as distinguished from voluntary assignments. There can be no doubt that in the present case the assignment was voluntary. The Boshamers were free to sell their land as well as their damage claim to whomever they pleased, or, had they chosen, they could have sold the land and the plaim separately. The voluntary nature of the assignment is reflected, in the fact that one of the respondents testified on cross-examination that he understood that he was “buying a claim against the Government.” 10

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United States v. Shannon, 342 U.S. 288, 72 S. Ct. 281, 96 L. Ed. 2d 321, 1952 U.S. LEXIS 2537 (1952).

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