Z. & F. Assets Realization Corporation v. Hull

114 F.2d 464
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 14, 1940
Docket7596
StatusPublished
Cited by30 cases

This text of 114 F.2d 464 (Z. & F. Assets Realization Corporation v. Hull) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Z. & F. Assets Realization Corporation v. Hull, 114 F.2d 464 (D.C. Cir. 1940).

Opinion

MILLER, Associate Justice.

The war between the United States and Germany was ended by a Joint Resolution of Congress on'July 2, 1921 j 1 which reserved to the United States and to its nationals all rights, privileges, indemnities, reparations, and advantages to which they became entitled by the Treaty of Versailles. 2 The resolution specified that all property of the Imperial German Government, or its successor, and of all German nationals, which was under the control of the United States, should be retained *466 by the latter until suitable provision had been made for the satisfaction of all claims of United States citizens against Germany arising out of, or in consequence of, the war, or otherwise. Thereafter, on August 25, 1921, a treaty of peace was entered into, at Berlin, between the United States and Germany, 3 securing to the United States the rights reserved to them in the Joint Resolution of July 2d, including all rights and advantages stipulated for the benefit of the United States in the Treaty of Versailles. This treaty was proclaimed by the President on November 14, 1921. 4 On August 10, 1922, an executive agreement was signed at Berlin, 5 which provided for the creation of a Mixed Commission 6 “to Determine the Amount to be Paid by Germany in Satisfaction of Germany’s Financial Obligations Under the Treaty” of August 25, 1921. The executive agreement provides for a commission of three members, one commissioner to be appointed by each of the' two governments, and an umpire to be selected by agreement of the two governments, who is charged with the duty of deciding “upon any cases concerning which the commissioners may disagree, or upon any points of difference that may arise in the course of,their proceedings.” The executive agreement provides further, in Article II, that in case the umpire or any of the commissioners shall die or retire, or be unable for any reason to discharge his duties, the same procedure shall be followed in filling the vacancy “as was followed in appointing him;” in Article IV, that the Commission may appoint and employ other necessary officers; that the commissioners shall, keep minutes of their proceedings and an accurate record of the questions and cases submitted to them; in Article VI, that “The two Governments may designate agents and counsel who may present oral or written arguments to the commission;” that the Commission shall receive and consider all written statements or documents which may be presented to it by or on behalf of the respective governments in support of or in answer to any claim; and that “The 'decisions of the commission and those of the umpire (in case there may be any) shall be accepted as final and binding upon the two Governments.”

On March 10, 1928, Congress enacted the Settlement of War Claims Act, 7 which directed the Secretary of State to certify the awards of the Mixed Claims Commission to the Secretary of the Treasury, who, in turn, was required to pay the awards so certified, according to specified priorities, out of a German special deppsit account thereby created. 7a

Pursuant to the executive agreement, the Commission was created, and an American Commissioner, a German Commissioner, and an Umpire were appointed. In 1927, there were filed with the Commission, by the agent for the United States, claims arising out of the destruction of property by reason of explosions, in 1916, at Black Tom, in New York Harbor, and at Kingsland, New Jersey, in 1917. On October 16, 1930, the Commission found that Germany was not responsible for the explosions and refused to allow the claims.

Petitions for rehearing of the Commission’s order dismissing the claims were denied on March 30, 1931. On July 1st of that year a supplemental petition in the two cases was filed, together with new evidence; this was dismissed on December 3, 1932. A new petition was filed on May 4, 1933, to reopen the cases, for the reason, then for the first time alleged, that the decisions of 1930 and 1932 had been obtained by fraud and collusion. Conflicting opinions were expressed by the two *467 commissioners as to the power of the Commission to entertain and consider petitions for rehearings. On December IS, 1933, the Umpire, Justice Owen D. Roberts, held that it had power to reopen the ca.ses and either confirm the decisions theretofore made, or alter them as justice and right might require. Following that decision additional evidence was filed by the agents of both governments and argument was had before the Commission upon the question of the power of the Commission. On June 3, 1936, the Commission unanimously set aside its decision of December 3, 1932.

After an interval of a year, occasioned by Germany’s request for postponement, witnesses were examined; additional evidence was filed by the agents of both governments; and, in January 1939, the cases were again argued at length before the full Commission. The American agent again requested that the cases be reopened and that the Commission render a final decision on the merits in favor of the United States. On January 27th, the hearings and arguments being concluded, the Commission took the case under advisement. In the deliberations of the Commission which followed, the Umpire and the American Commissioner each expressed the view that the Commission’s decision of October 16, 1930, had been induced by fraud in the evidence presented by Germany. Thereupon, at the specific request of the German Commissioner, the Commission proceeded to determine whether, upon the whole record, there was sufficient proof of Germany’s responsibility to justify setting aside the prior decision. On March 1, 1939, and during the course of the Commission’s deliberation upon that question, the German Commissioner retired as a member of the Commission.

Thereafter, personal notice was given to the German agent of a further meeting of the Commission to be held on June 15, 1939. Following this notice, and prior to the date of the meeting, Germany stated, through announcements made both by its agent and its diplomatic representative, that it would ignore the meeting called. These representations and announcements were made a part of the record. On the day of the meeting, the Commission rendered a decision, setting aside its earlier decision of October 16, 1930, and reopening the cases. The American agent again moved that awards be granted in favor of the United States. The motion was granted and the Commission found that the liability of Germany, in both the Black Tom and Kingsland cases, had been established. It was ordered that awards be prepared and submitted to the Commission for its consideration at a further meeting to be held on notice.

Prior to October 30, 1939, personal notice was given to the German agent of a meeting of the Commission to be held on that date.

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