Title: In Re Hillesland's Estate

State: north-dakota

Issuer: North Dakota Supreme Court

Document:

86 N.W.2d 522 (1957) In the Matter of the ESTATE of D. G. HILLESLAND, Deceased. Wm. JOHNSON, as County Auditor of Burke County, North Dakota, Petitioner and Appellant, v. Dan HILLESLAND, and all persons unknown interested in the estate of D. G. Hillesland, deceased, Respondents. No. 7656. Supreme Court of North Dakota. November 27, 1957. *523 Leslie R. Burgum, Atty. Gen., A. C. Bakken, Jr., John E. Adams, Asst. Attys. Gen., for appellant. Robert L. Vogel, U. S. Atty., Ralph B. Maxwell, Asst. U. S. Atty., Fargo, for respondents. BURKE, Judge. The issue in this proceeding is whether a claim of the Farm Home Administration against the insolvent estate of D. G. Hillesland is superior to that of the Public Welfare Board of the State of North Dakota. The claim of the Farm Home Administration, for money advanced as agricultural loans, is in the sum of $2,787.94. The claim of the Public Welfare Board, for old age assistance advanced, is in the sum of $187.95. The total assets in the hands of the administratrix of the estate, available for distribution amounted to $1,636.71. The County Court of Burke County determined that the claim of the Public Welfare Board was superior to that of the Farm Home Administration. The United States appealed from this decision to the District Court of Burke County. The district court reversed the decision of the county court and the Public Welfare Board has appealed from that decision to this court. The Farm Home Administration contends that its claim is entitled to priority, as a debt due to the United States under the provisions of Section 191 of Title 31 U.S. C.A., U.S.Rev.Stat. Sec. 3466 and of Section 30-1818, NDRC 1943. These sections are as follows: The Public Welfare Board contends first, that its claim has priority under the provisions of Section 50-0734, 1953 Supp. NDRC 1943, and second, that Section 50-0707, NDRC 1943 and the action taken by the board pursuant to such section, gave it a specific and perfected lien upon the property of the decedent against which the priority of debts due the United States would be of no avail. The statutes relied on are as follows: The Public Welfare Board concedes that Section 50-0734, supra, if given the construction for which it contends, would conflict with the provisions of Section 30-1818, supra, which provides that claims for debts due to the United States shall be superior to those of the Public Welfare Board. The board urges, however, that Section 50-0734, is a later and special statute and that therefore its provisions must prevail. It is our opinion that neither of the contentions of the Public Welfare Board can be sustained. Unquestionably a debt due to the Farm Home Administration is a debt entitled to priority under the provisions of Section 191, supra, as a debt due to the United States. United States Department of Agriculture, Emergency Crop and Feed Loans v. Remund, 330 U.S. 539, 67 S. Ct. 891, 91 L. Ed. 1082. This being so, it is unnecessary for us to resolve the alleged conflict between the state statutes. The fact that a state statute may attempt to give one of its agencies priority is of no consequence, as the priority given to the United States by congressional act may not be impaired or defeated by state law. United States of America v. State of Oklahoma, 261 U.S. 253, 43 S. Ct. 295, 67 L. Ed. 638. We also see no merit in the appellant's theory that Section 50-0707 and the filing of a homestead statement as therein provided create a statutory lien upon the property of a person receiving old age assistance. The statute does not mention a lien but provides only for a restraint on alienation. Prior to the enactment of Chapter 211, Laws of N.D.1937, of which Section 50-0707 was a part (sec. 22), old age assistance was payable as old age pensions under the provisions of Chapter 254, Laws of N.D.1933. Under the provisions of this act applicants for old age pensions could be, and were, required to give mortgages upon, and conveyances of, all of their property including the homestead as security for the repayment of the money advanced. This act was repealed by Chapter 212, Laws of N.D.1937, which was enacted contemporaneously with Chapter 211, supra. Section 1 of Chapter 212 provides: A review of these statutes convinces us that one of the objects of the legislature in enacting Chapter 211, supra, was to abolish the practice of requiring liens or mortgages upon homesteads as security for the repayment of moneys advanced for old age assistance and that therefore Section 50-0707 which was a part of Chapter 211, cannot be construed to create such a lien by implication. The judgment of the district court is affirmed. GRIMSON, C. J., and JOHNSON, SATHRE and MORRIS, JJ., concur.