Document: 454 U.S. 46 102 S.Ct. 49 70 L.Ed.2d 39 Donna RIDGWAY and Prudential Insurance Company of America, Petitionersv.Hayley D. et al. No. 80-1070. Argued Oct. 7, 1981. Decided Nov. 10, Syllabus When Army Sergeant Ridgway his first wife, April, were granted a divorce by Maine court, the decree, inter alia, ordered to keep in force insurance policies on life then outstanding for benefit Ridgways' three children. At time divorce, sergeant's was insured under $20,000 policy issued petitioner Co. America (Prudential) pursuant Servicemen's Group Life Act 1965 (SGLIA), April designated beneficiary. Subsequently, married Donna, changed policy's beneficiary designation one directing that proceeds be paid as specified "by law," which meant SGLIA would insured's "widow," i. e., "lawful spouse . at death." Thereafter, died, survived lawful wife. After had both filed claims proceeds, instituted suit Superior Court against Prudential, seeking enjoin payment obtain declaratory judgment payable children decree. joined plaintiff asserting claim based her status Ridgway's widow. cross-claim, praying imposition constructive trust children's any Donna. The rejected April's claims, taking view interfere with operation thus run afoul Supremacy Clause. Supreme Judicial vacated dismissal remanded directions enter an order naming trustee proceeds. Held: prevails over imposed upon state court. Pp. 53-63. (a) As consequence Clause, like other law governing economic aspects domestic relations, must give way clearly conflicting federal enactments. Here, provisions according service member right freely designate alter choice communicating decision writing proper office prevail displace inconsistent law. Wissner v. Wissner, 338 655, 398, 94 L.Ed. 424, controlling; Yiatchos Yiatchos, 376 306, 84 742, 11 724, distinguished. 53-60. (b) is also provision which, addition exempting "from creditors," prohibits "attachment, levy, or seizure legal equitable process whatever," whether accomplished "either before after receipt beneficiary." Any diversion means court-imposed operate forbidden "seizure" those 60-61. 419 A.2d 1030, reversed. Stephen P. Beale, Lewiston, Me., petitioners. Joshua I. Schwartz, Asst. Sol. Gen., Washington, C., United States amicus curiae special leave Court. Curtis Webber, Auburn, respondents. Justice BLACKMUN delivered opinion 1 This case presents issue serviceman's Pub.L. 89-214, 79 Stat. 880, state-court 2 * Facts 3 Richard H. career sergeant Army. parents children, Hayley, Laurie, Brady, all minors. marriage, however, ended court December 1977. judgment, entered complaint apparently following property settlement negotiations, Richard, among things, pay amounts monthly support App. 13. It him 4 "to now parties' If such should subsequently terminated reason, defendant shall immediately replace it equal amount children." Id., 14. 5 group contract Administrator Veterans' Affairs. policy. 6 On March 28, 1978, less than four months second individual here. Six days later, sergeant, insured, its law." referred statutory precedence set forth 38 U.S.C. § 770(a). See CFR 9.16(i) (1980). Under prescription, event death, is, 765(7). 7 died January 5, 1979. wife death. Both claim, behalf Donna's rested 8 thereafter present Androscoggin County, Me. representative minor she sued litigation aligned cross-claim trust, supported position. 9 claims. acknowledged terms inconsistent.1 But felt SGLIA, disposition therefore U.S.Const., Art. VI, cl. 2. 38-43. 10 ensuing appeal Maine, parties stipulated, inasmuch been deposited sole "[w]hether not presiding justice erred ruling that, basis facts found, he could impose insurance." 48. That sympathetic Court's Clerk, who held directed them Ins. 1035 (Maine 1980). We certiorari, 450 979, 101 1512, 67 813 (1981), review important presented case. II Statutory Background 12 In make coverage available members uniformed services active duty, particularly combat zones, Congress enacted SGLIA. H.R.Rep.No.1003, 89th Cong., 1st Sess., (1965), U.S.Code Cong. & Admin.News 1965, 3232. impetus legislation escalating level hostilities casualties ongoing Vietnam conflict; this prompted private commercial insurers restrict members.2 111 Cong.Rec. 24339 (1965) (remarks Rep. Teague, Chairman House Committee Affairs); see S.Rep.No.619, (1965). earlier program federally sponsored members, National Service 1940, 54 1008, 1958, amended, 701 seq. (NSLIA), placed effect shortly involvement country World War II, allowed lapse end Korean when generally became members.3 Accordingly, NSLIA obtained many duty 1965. Teague). 13 Although purposes resemble respects, differs from predecessor directs Affairs purchase more qualified instead offering itself. 766. Thus, Government policyholder, rather insurer. has contracted serves primary insurer operates, Administration supervision 766(b), Office Newark, N. J. 14 initially provided only serving services. 880. maximum $10,000. 881. Since changes have expanded eligibility available.4 operated presumptive enrollment basis; automatically premiums are withheld member's pay, unless expressly declined written election. §§ 767(a) 769.5 15 through carrier reasonable rate, notwithstanding mortality risks often assume, undertook subsidize program. S.Rep.No.91-398, p. (1969), 1970, 3317. A sum representing extra premium periodically into revolving fund used master 769(b) (d)(1). otherwise derived primarily deductions members' pay. 769(a)(1) depending conditions faced given time, may financed part funds. 16 establishes "order precedence," 770(a), beneficiaries. By provision, "beneficiary beneficiaries [an appropriately filed] received prior there no beneficiary, go widow widower or, if widower, child descendants deceased representation." Parents, estate (an obvious bow point direction law), next order. Ibid. 17 91-291, 330, added anti-attachment provision. With certain exceptions applicable here, shields payments made 770(a) taxation" "claims states "shall liable attachment, whatever, either 770(g). 18 Pursuant general rulemaking authority veterans' programs, 210(c)(1), promulgated regulations implementing These provide "may person, firm, corporation entity" "designation change will take writing, signed [by appropriate office] death insured." 9.16(a) (d) without knowledge consent previous 9.16(e). And "[n]o cancellation last testament, document office." 9.16(f). III 19 foregoing description plan adopted Congress, implemented Administrator's regulations, demonstrates pervasive detailed characteristics congressional specifications. stated concern member, matter how hazardous protection itself says nothing about contrary dictates judgments. 20 concluded "does reflect interest permitting serviceman evade responsibility virtue voluntary agreement express valid decree." A.2d, 1033. further 770(g), "has application instant since purpose protect creditors." pointed out concerned "not creditor but assert arising their father's judicial said, accomplishment objectives statute "is neither obstructed nor interfered imposing proceeds." 21 forthwith acknowledge, course, "only power judgments correct extent they incorrectly adjudge rights." Herb Pitcairn, 324 117, 125-126, 65 459, 462-63, 89 789 (1945). follows subject disturbance here fails honor rights duties. 22 Notwithstanding limited field relations generally, McCarty McCarty, 453 210, 220, 2728, 2735, 69 589 (1981); Hisquierdo Hisquierdo, 439 572, 581, 99 802, 808, 59 (1979); re Burrus, 136 586, 593-594, 850, 852-853, 34 500 (1890), Court, even area, hesitated protect, expectancies established law, prevent frustration erosion embodied rights. supra; Free Bland, 369 663, 82 1089, 180 (1962); 424 (1950); McCune Essig, 199 382, 26 78, 50 237 (1905). Cf. 309, 744, 724 (1964). While "[s]tate family family-property do 'major damage' 'clear substantial' interests Clause demand overridden," U.S., S.Ct., references Yazell, 382 341, 352, 86 500, 506, 404 (1966), "[t]he relative importance State own material conflict Framers our Constitution prevail." 666, 1092. Gibbons Ogden, Wheat. 1, 210-211, 23 (1824). And, specifically, supra. principle necessary Constitution. supra, named Upon claimed community specifically clause. Despite these provisions, California property, half reversed, noting "Congress spoken clarity belong other." 658, 399. Further, "the below nullifies soldier's frustrates deliberate Congress. cannot stand." 659, 400. diversion, future prohibited strong words positive ruling. 24 same approach followed later cases: concerning survivorship Savings Bonds co-ownership form; involving Railroad Retirement 1974, 45 231 seq.; military retired 25 case, we feel, controlled Wissner. 717(a) just 602(g) NSLIA, 1010, possesses office. there, said: There can doubt aware breadth freedom accorded pertinent Report flatly: "The person beneficiary," 3233, emphasized floor Representative Everett: "This bill permits you your church, college, best friend. wide open option." 24341 court's analysis language legislative history.6 27 Neither respondents questioned control policies. Indeed, observed : 28 "Possession government insurance, choice, might well directly enhance morale serviceman. exemption guarantee complete full performance exclusion legitimate within powers national defense, adapted chosen end." 660-661, 400-401. 29 especially because substantial share attributable tax revenues. 30 are, sure, some small differences between NSLIA. granting "at times" appear Act, 717(a), one, "without consent" presently spelled Act's unqualified directive properly suggests different result intended possible ambiguity eliminated "change 9.16(e) suggestion unreasonable, unauthorized, supportable.7 Whirlpool Corp. Marshall, 445 11-13, 100 883, 890-891, 63 154 (1980); Udall Tallman, 380 16, 85 792, 801, 616 31 (1964), relied respondents, cited does stand contrary. considered question left 670-671, 1094, namely, "scope application" doctrine fraud exception regulatory imperative." 307, 744. There, decedent resident State, purchased funds name brother. "was rights" surviving "a void endeavor divest property." Yiatchos' Estate, 60 Wash.2d 179, 181-182, 373 P.2d 125, 127 (1962). agreed bonds device deprive enjoys Washington 745. entitled "unless brother committed breach tantamount fraud" wrongfully disposing wife's ibid., opportunity demonstrate consented ratified registration bonds. remand determination, community's specific assets, generally. 32 contrast, conduct did conversion another's property. careful reading amended complaint, 24, reveals allegation trust. inclined infer comes us, does, record indicating member. say type constitutes creditor, render 770(g) nugatory. trial intimated, breach; disclose kind collectible.8 33 finally, fundamental distinction respondents' asserted concepts Yiatchos. Federal bestow absolute personal alone. shared asset another, distinct vested interest. create insurance. exercising power, hardly said fraud. conclude, therefore, controlling law.9 IV 35 400, invoked identical independent ground reached rejected, so, id., 663-664, 402, dissent's argument interested protecting [the fund], parallels favor creating 36 attempted limit reach noted above, theory creditors, interests. contention, sweep statute. Section prohibits, broadest terms, renders bulk quoted text extraneous. What consideration qualification here: 37 "Like [citing Wissner], ensures benefits actually pre-empts stands way. protects '[n]otwithstanding State'. prevents vagaries disrupting scheme, guarantees uniformity enhances effectiveness policy." 584, 809.10 find indicate exempt agreements provision.11 V recognize unpalatable "equities" respondent mother. obligations 1977 Those "now outstanding" extended support, clothing, "medical, dental, optical expense," loans indebtedness. 13-15. Ridgway, instead, chose new policy.12 40 kind, avoided chooses avoid it. Congress' power. Thus far, insulated attack claimant line precedence. choice. remains effective until providing enacted. 41 42 Reversed. 43 O'CONNOR took 44 POWELL, whom REHNQUIST joins, dissenting. holds (SGLIA Act) broadly finds, light decisions, pre-emptive extend cases Ante, ----, citing (1964).1 670, (1962) (pre-emption "sanctuary wrongdoer's gains"); 582, (1979) (the "survivorship rules savings bond programs override absent ") (emphasis added). concludes, "allegation trust" case: 47 "Sergeant member." 58-59. 48 reaching conclusion "nothing contract," linger facts.2 decree divorcing incorporating required several negotiate, negotiated detail. custody couple's two 1978. He beginning 1978 increasing medical dental expenses, incur them, possible, "so [Richard's] particular exchanges responsibilities, ordered: "Defendant [Richard] added).3 Less remarried promptly clause so entire 51 I return makes "no trust," simple contract" Richard. 59. Perhaps inartful. Yet averred existed Donna—the recipient "constructive benefit" 26. explicitly corpus trust.4 technical sense, perhaps argued precise used. averred, 25, substance created Richard's conduct. 52 my view, plainly wrong concluding obligation "any commercial" debtor defaults judgment.5 Familial merely commercial. Few duties universally father divorce. recognized ordering discharge maintaining Yet, today analogizes debtor! holding ignores difference character consequences. defaulting subjected attachment lien. sent jail. violates enforcing imprisoned contempt. 53 responds dissent footnotes 11. involve fraudulent behavior: attempts 'to property.' " 59, n.8 deleted). distinguishes, determining pre-emption issue, affects aside support. distinction. recognize, qualification, "federal [may allowed] shield trust." thought today's suggest—much find—that "shielded" adult capacity young always reflected solicitude See, e. g., Bellotti Baird, 443 622, 633-635, 3035, 3043-44, 61 797 (1979). argues contrast" husband's "divest[ing]" [merely] misdirected exclusive control." (Emphasis added.) n.8. indeed generous describe Sergeant's Moreover, statement "exclusive control" begs very us: retained despite divested himself voluntarily agreement. approved agreement, comply far "control" thereby husband Free. whatever "misdirect" unless—contrary decisions—the read allow trust.6 55 hold nature parental manifested bargain imposes law.7 acknowledges, ante, 58, intention supplant Here impressed accordance Maine.8 affirm Maine. 56 think breach-of-trust dispositive, willing—in preventing what seems me uniquely unjust decision—to join remanding fraud.9 fraud, yet admitted strongest inference diverting temporal sequence persuasive. Following negotiation, 1977, included funding obligation. thereafter, stripped changing receive inadvertent act. unlikely enchantment caused forget 57 appropriate, afford courts address issue. ruled considering alternative theory. foreclose consideration, permitted advance stage proceedings procedural 58 STEVENS, effectuates commanded maintain children.1 propriety us review.2 Unless well-established "major damage" "clear interests,"3 respect absence major damage, decides conflicts 765-776.4 finds statute, gives exempts taxation process. Because similar rejecting concludes result. Unquestionably, recipient's creditors.5 interest, much defined, rejection estranged examination compromised 62 alleged concerns first. provides: "Payments due become to, account of, taxation, 64 securing hands regardless majority recognizing 60, most bar advanced dependents "anti-attachment" comparable found so-called "spendthrift clauses" protected creditors centuries.6 Dean Griswold, "[i]t widely held, where trusts valid, alimony wife." E. Spendthrift Trusts 389 (2d ed. 1947).7 Prior number "spendthrift" support.8 Many fact programs. summarized treatise: 66 "And care incompetent veteran exemption, debt meaning growing public R. Kimbrough Glen, American Law Veterans 1954).9 thoughtful expansive Rutledge, Appeals District Columbia, explains rationale decisions. Schlaefer Schlaefer, 71 App.D.C. 350, 112 F.2d 177 (1940), arrears payments. Plaintiff sought sequestration former including $100 per month disability Columbia. Defendant responded exempted 16(a) statute.10 68 basic boils down relieve disabled legally enforceable dependent him." 358, F.2d, 185. recognized: "So clear, stated, solely judgment. regarded better unpaid earning cut off. Hence broad prohibiting recourse process." determined, classified, "with strangers hostile interest." usual exemptions pressure dependents' essential needs ones, familial destroy family's security, short relief." construction giving statute." 359, 186. explained court: 72 remaining broad, applying 'debts' 'liabilities.' Furthermore, consistent others methods enforcement nullify circumstances constitute source livelihood, though adequate luxury. believe declared acts." (footnote omitted). 73 authorities, "debt" "liability" ordinary usages terms.11 74 repudiate business obligations. Rather, category. "we note rests something moral supporting children: relationship man mutual monetary profit." 660, 400.12 result, simply commands 75 history evidences intent obligations.13 incorporated statutes satisfying creditors. certainly arise debtor, borne Claims obligation, character, precisely intended.14 Absent indication standard contained child's am unwilling conclude 76 put side, policy.15 determine done underlying identify precisely. 77 common feature contracts. surely characterized sense. mere require contract. 583, proscribe 78 To speculated "[p]ossession serviceman." however. forces distribution choose settlement, choice; espouses derogation accepted section expresses justified need "morale" Armed Forces. defining supports pre-empt Originally, servicemen persons fell limited, defined class.16 decided, spouse, child, grandchild, parent, sibling proposition immediate serviceman, party. 80 removed limitations eligible 883. policy, creditor. Today, priority decision, loan shark, camp follower, total stranger decided. No justifies beneficiary.17 81 ironic harm tangible ascribed today, commitment one's binding. future, negotiations forced fair assurance remain satisfied For servicemen, easy obtain. Surely depreciating value respectfully dissent. "agreement valid," opined "would [April] cause action, husband," 42, Stratton Co., 422 F.Supp. 1119 (SD Iowa 1976). 1122. title recited indemnity Forces purposes." still Government, Risk, Insurance, period. Risk 6, 1917, 409. Williams, 302 46, 81, (1937). 2, 326-327; 92-315, 227; 93-289, 88 165, 166, 169. Solicitor General 99.6% personnel 97.9% Ready Reservists enrolled Brief Amicus Curiae 5. (1969). 1032-1033 (1980), appended 15-17 remarks choice-of-beneficiary Act. context, plain serve exhaustive list purposes; identified problems existing addressed pending legislation. STEVENS "interest [expressed 770(a)] compromised" decision. Post, 80. true command insured," 9.16(d) points mean said. POWELL looks (1962), allowing n.1. cases, property," added); 745, grew "fraud thereto while acting manager 1094. control. doing deprived transpired (1950). endorsed holding, "[t]here clear select likely guaranteed unable distinguish cases. extreme situations instances illegal as, example, murders Shoemaker Shoemaker, 263 931 (CA6 1959). Our situation reserved another day. Burgess Murray, 194 131 (CA5 1952), Voelkel Tohulka, 236 Ind. 588, 141 N.E.2d 344, cert. denied, 355 891, 263, 189 (1957), helpful. each This, dispositive intent. spouse. event, SGLIA's requirements stricter corresponding Compare 8.46 8.47 (1980) (NSLIA) 9.16(f) (SGLIA). suggests, citation, inapplicable duty," "[f]amilial commercial." 70, 68. Again, answers objection. decedent's widow, Her action grounded property; conceded principle, considerable importance." n.4, n.4. nevertheless struck widow's being "in flat conflict" NSLIA's significant rise action. meanwhile, "it support," post, 74; reasons "[p]rior 'spendthrift' 65, "there obligations." 78. 78-79. attractive arguments, survives close scrutiny. recent almost virtually unanimous overrides Hoffman States, 391 195 (CA9 1968) (anti-attachment decree); Kimball 304 864 1962) (same); Eldin 157 Ill. 1957) Williams 255 N.C. 315, 121 S.E.2d 536 (1961) Fleming Smith, 277, 284, 418 147, 151 (1966) (same). Donall, 466 1246 1972); Taylor 459 1007 (CA9), 409 967, 93 273, 232 (1972); Suydam U.S.App.D.C. 1329 (1968); Fitzstephens 919 (Wyo.1960); Heifner Soderstrom, 134 174 (ND 1955). background decisions provision—using Presumably, then, intend write STEVENS. believe, closely accords "ensur[e] 809, Respondents, brief oral argument, speak "unjust enrichment" Ridgway. discloses part. She was, all, depriving inequitable intimate wrongdoing outcome. n.9, discerns "fundamental distinction," 57, saving distinction, preemption equally applicable. bestowed purchaser irrespective purchasing funds—an 669, 1093, party suffering exercise preemptive claimed, "shared" question. state-law stronger (under decree) policy—not conferred alleges: "4. themselves regarding questions clothing allowances, assumption bills, maintenance thereof, attorney's fees. "5. continuing financial represented compromises original positions taken respective understanding setting final "6. Paragraph "7. 3, violation aforesaid itself, purported 'at law' form designating servicemen's "9. position Ridgway." App., 25-26. denied 9, sufficient information belief truth Paragraphs 4, 7. paragraphs. 34. stipulate facts: "Prior carried attorneys, period months, course worked division marital dated incorporate ultimately parties." 33. couple stated: "Courts commonly failed, divorced ". enforce SGLI frustrate impede objective. Nor anything literal [SGLIA] prohibit action." 1031, 1034-1035 opinion, designed They misappropriate (in effect) lawfully correctly observed: "[T]he spendthrift (1950), controlling. authority—though marginal—is supportive involved assigned mother, divesting Second, anti-assignment referring 400 reasoning duty. this. "specific recognition" "moral obligation" "suppor[t] children" Finally, decided subsequent room existed. (1964); n. 14, 1094 Board County Comm'rs 308 343, 349-350, 351-352, 285, 287, 288-289, 313 (1939). "[W]hether determined ." Mishkin, Variousness "Federal Law": Competence Discretion Choice Rules Decision, 105 U.Pa.L.Rev. 797, 816-820 (1957) (national definition "competency" predecessor). imputed Simonds Simonds, N.Y.2d 233, 189, 408 N.Y.S.2d 359 (1978); McKissick McKissick, Nev. 139, 560 1366 (1977); Richards Richards, Wis.2d 290, 206 N.W.2d (1973); G. Bogert, Trustees 475 (rev. 2d 1978). 242, N.E.2d, 194, N.Y.S.2d, 364 (citations omitted): "Unjust enrichment, wrongful act enriched. Innocent frequently unjustly required, 'under equity good conscience ought retain it.' bona fide takes free gratuitous donee, however innocent, not." whole parent belongs laws States." 500. "State overridden. (1966)." 807, 1. Relevant amendments 1970. 326. 8346(a) (Civil benefits); 376(n) (annuities survivors officials); 3796(f) (1976 ed., Supp.III) (Public Safety Officers' Death 231m (Railroad benefits). interesting note, 659(a) provides "[n]otwithstanding 1975, moneys entitlement remuneration employment) from, by, Columbia (including agency, subdivision, instrumentality thereof) individual, armed services, subject, manner brought enforcement, payments." removes sovereign immunity 1947); supra n.1, 221-230; A. Scott, 149-162 (3d 1967). Restatement (Second) 157(a) "Although satisfaction "(a) alimony. 224; n.6, 157.1, cited. (1940); Flanagan, 402 (DC 1940); Hannah Hannah, 191 Ga. 134, 779 (1941); Gaskins Security-First Bank, Cal.App.2d 409, 681 (1939); Gardner, 220 Wis. 493, 264 N.W. 643 (1936); Stirgus Stirgus, 172 Miss. 337, 160 So. 285 (1935); Stone Stone, 188 Ark. S.W.2d (1934); Hollis Bryan, 166 874, 143 687 (1932). 28-33 1954); Dillard Dillard, 341 668 (Tex.Civ.App.1960). Conaway Conaway, 218 427, Cal.Rptr. 890 (1963); Riker Riker, Misc. 289 N.Y.S. 835 Brewer Brewer, Tenn.App. 209, 1022 (1933). Rogers, Enforcement Claim Alimony Support, Attorneys' Fees Costs Incurred Connection Therewith, Against Exemptions, A.L.R.2d 1422 (1957); Annot., Construction Application Provisions Statutes Relation Exemption Creditors Amounts Paid Pensions, Compensation, Bonus, Other Relief Veterans, 109 A.L.R. 433 provided: "No money paid, provided, allowed, company injury sickness execution, garnishment, process, seized, taken, appropriated applied liability incurred commencement disability, affect assignability assignable, apply income recover necessaries covered benefit." 16(a), 1175. Rutledge's diminished time. Cody Riecker, (EDNY 1978), aff'd 594 314 (CA2 1979), extensively Employee Income Security 1974 (ERISA), 1001 seq., pension satisfy Clark preserved sharp contrast blithe reliance today. worth quoting treatment issue: "We relating pensions relief Tully Tully, 159 Mass. 91, N.E. (1893); Hodson New York City Employees' System, 243 App.Div. 480, 278 Guardianship Bagnall, 238 905, 597 (1947), therein cf. 239-241, 1022, 1040 attempt epitomize system least ancient customs Visigoths, profit. de Funiak, Community Property, (1943). Venerable worthy not, think, justify recognition needs, be, irrelevant here.4 "4 importance. Likewise turn factual variations spouse's need. drawn, generalization dominating class cases—alimony uniformly basis." 659-660, 399-400, marriage. "over 8. noteworthy "[w]ar risk greater dependents." 50, 83, 39. infra. subchapter date establishment therefor, preference: "First, writing. brother, sister. 1919 enlarged include uncles, aunts, nephews, nieces, brothers-in-law sisters-in-law. 371, 375. 1924, 607, 624. 601(g), stepchild illegitimate insured), loco parentis sister early dispute aunt, one-half distribution. White 270 175, 274, 530. rule

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