Document: 338 U.S. 366 70 S.Ct. 207 94 L.Ed. 171 UNITED STATESv.AETNA CASUALTY & SURETY CO. and three other cases. Nos. 35, 36, 37 38. Argued Oct. 19, 20, 1949. Decided Dec. 12, Mr. Leavenworth Colby, Washington, D.C., for the United states. William A. Hyman, New York City, Aetna Casualty Surety Co. Jackson G. Akin, Albuquerque, N.M., pro hac vice, by special leave of court, respondent World Fire Marine Ins. Abraham Frankel, Asbury Park, N.J., Yorkshire Home Chief Justice VINSON delivered opinion Court. 1 These cases, here on certiorari, present this important question under Federal Tort Claims Act:1 May an insurance company bring suit in its own name against States upon a claim to which it has become subrogated payment insured who would have been able such action? That question, turn, requires our consideration R.S. § 3477, 'anti-assignment' statute.2 2 Three each presenting slightly different aspect problem, were heard In No. complaint alleges that employee Reserve Bank was injured as result negligence Post Office Department employee. Respondent carrier had liability workmen's compensation, duly paid person's Workmen's Compensation Law, Consol.Laws, c. 67. The further person failed commence any action within one year after accident, his inaction operated, according law,3 assignment insurer cause States. District Court dismissed complaint, but Appeals Second Circuit reversed remanded trial. 170 F.2d 469. 3 Government's motion dismiss denied, and, trial, found fact Forest Service negligently driven Government vehicle into owned Harding, causing damages $1,484.50; Harding pursuant terms policy, $784.50 insurer, now subrogated. Judgment thereupon entered favor $700 $784.50. Tenth affirmed. 4 38 situation two companies, part loss occasioned States, suits their names, asking recovery amount assured. complaints Government, Third causes. 374. We granted certiorari these 336 960, 69 890, because conflict decisions circuits4 manifest importance question. 5 Act provides pertinent '* * district court wherein plaintiff is resident or act omission complained occurred, sitting without jury, shall exclusive jurisdiction hear, determine, render judgment money only, account damage property personal injury death caused negligent wrongful while acting scope office employment, circumstances where if private person, be liable claimant damage, loss, injury, accordance with law place occurred. Subject provisions chapter, respect claims, same claimants, manner, extent, individual like *.'5 6 While language indicates congressional purpose treated torts committed employees, except certain specific exceptions enumerated Act,6 neither nor legislative history precludes application 3477 situation. 7 It position makes 'All transfers assignments share thereof, interest therein absolutely null void *' made prescribed safeguards, includes operation prohibits subrogee name. Petitioner reads not prohibiting transfer claimant's substantive rights insurer-subrogee ultimate procedural requirement sue recover original claimant. v. American Tobacco Co., 1897, 166 468, 17 619, 41 1081. Its invoking anti-assignment statute said two-fold: '(1) insure may avoid involvement litigation existence extent subrogation claims; (2) judgments will names claimants so avail itself statutory venue, counterclaim offset cross-claims claimants.' pointed out 'The making power attorney contractor are protection Government. Hobbs McLean, 117 567, 576, 870, 874, 29 940; McGowan Parish, 237 285, 294, 295, 35 543 (547), 59 955. absence rule, danger becoming embroiled conflicting delay embarrassment chance multiple liability.' Martin National 1937, 300 588, 594, 57 531, 534, 81 822. contends inconvenience, administrative accounting difficulties, problems which, apprehended, involve subrogees permitted make apt intent. 8 should noted at outset, however, courts below until argument (and even petition certiorari) contended complete bar subrogee. Only brief suggested could brought use citing first time supra, decision reflecting common-law procedure, reliance placed.7 reason opinions focused whether absolute rather than merely think, limited, somewhat anomalous,8 untenable, first, uniform interpretation given past 75 years, second, many affirmative indications intent claims excluded from Act. 9 enacted 1853 entitled 'An prevent frauds Treasury States.'9 primary undoubtedly persons influence buying up might then improperly urged officers Government.10 Spofford Kirk, 1878, 97 484, 490, 24 1032. Another purpose, relies, inferred statute. possible unnecessary investigation alleged assignments, enable deal only supra; Goodman Niblack, 1880, 102 556, 560, 26 229. Most early cases construed strictly, holding all included conferred no kind assignee; 'incapacitates every creating himself.' pages 488 489, See also Commerce Downie, 1910, 218 345, 31 89, 54 1065, 20 Ann.Cas. 1116; Nutt Knut, 1906, 200 216, 50 348; St. Paul Duluth R. 1885, 112 733, 366, 28 861. 10 rigor rule very relaxed thought productive evils designed obviate. And law. Gillis, 1877, 95 407, 503, held provision assignee did mean inapplicable Claims, referred excepted prohibition statute, 'devolutions title force law, parties, involuntary compelled law.' During following term case presented bankruptcy sued bankrupt. This maintainable despite ground Congress Feb. 26, 1853, treasury subject Gillis case, applies voluntary demands government. does embrace there passing heirs, devisees assignees evil aimed; construction deny parties standing Claims.' Erwin 392, 397, 1065. 11 3477—that statute—was recognized settled repeated approval great subsequent cases.11 12 contends, contrary statements approving always exempt addition must difficulties previously to. All explained situations suffer embarrassments. descent, consolidation corporations, Seaboard Air Line 1921, 256 655, 611, 65 1149, purchase judicial sale corporate reorganization, Western Pacific 1925, 268 271, 45 951, substituted representative dealt substitution. Rights set-off retained universal successor, can give rise controversies adjudication between trustee, receiver, administrator. 13 Without considering some comprehended rationale,12 we do think explains exception place, stated flat distinguished transfers. If rest premise advanced never articulated opinions. second consistent number times indicated purposes contravened 'all therein,' broad enough (if Congress) include will. Yet bankruptcy, obvious harass government multiplying whom deal, enlisting improper influences advocacy claim, exigencies party justified required made.' page 229; italics added. Hager Swayne, 1893, 149 242, 247—248, 841, 843, 719. 14 unintended by-products aimed fraud harassment. has, nearly century, exempted 3477. 15 understanding when passed abundantly clear particulars: 16 1. Small 192213 provided heads departments 'may consider, ascertain, adjust, determine privately exceed $1,000, officer employment.' Such due certified payment. A directed Attorney General 1932 'whether owner damaged certified, properly receive compensation suffered.' Mitchell's opinion14 was: (1) right due; He thought, inasmuch concerning enacting Act, body asked interpret expressly called attention. Thereafter carriers regularly submitted consistently approved repealed General's acquiescence Comptroller 19 Compt.Gen. 21 341, 22 611. unique thus identical 'on *.' 2. reference necessary preclude (i.e., subrogees) clearly view For foreign legislation intended result, explicitly Officers pay death, countries, 'including excluding subrogees.'15 provision, 1943, fulfill petitioner performed 3477.16 No although spelled particularity. significance is, wished exclude so; function. similar see 49 Stat. 2194.17 18 3. Nor executive themselves applicable report hearings H.R. 6442, 77th Cong., 2d Sess. (1942) plain. bill, drafted Department, institute actions subrogors competent jurisdiction, restrain receiving funds final reached money. Assistant Counsel Treasury, explaining stated: 'In 1877 Supreme Court, stating effect section covered tribunal they asserted, resulting purview 'Now another carved recognize types adverse basis what third-party including based subrogation, equitable liens.' Hearings before Subcommittee House Committee Judiciary, (1942), p. cannot therefore seriously cognizant exemption passed. sweep assuming relieve substantial burden persuasive intend barred. 23 If, then, inapplicable, defend person. Rule 17(a) Rules Civil Procedure, U.S.C.A., specifically litigation,18 'Every prosecuted real interest,' course insurer-subrogee, rights, qualifies such. entire suffered insured, Moore, Practice (2d Ed.) 1339. both insurers, any, portions loss) tortfeasor qualify them interest. partial arises alone, company, join action. Under practice acquired enforced insurer's use, Hall Long Nashville C. Railroad Companies, 1871, Wall. 367, 594; true Glenn Marbury, 1892, 145 499, 914, 36 790. Stone characterized 'a vestige common law's reluctance admit chose assigned, (which) today formality widely abolished legislation.' Life Moses, 1933, 287 530, 540, 53 231, 233, 77 477, 88 A.L.R. 647. Rules, 'use' obviously unnecessary, long equity, Garrison Memphis Insurance 1856, How. 312, 656, admiralty, Liverpool Great Steam Phenix 1889, 129 462, 469, 479, 32 788. taken almost verbatim Equity 37. appears why since 'own' appear names. 25 Although either sue, timely motion, compel joinder. Delaware County Diebold Safe Lock 1890, 133 473, 488, 399, 403, 33 674, (applying state code Conformity Act). 1348. Both 'necessary' parties. 19(b), rules Procedure.19 pleadings reveal assert actual plaintiff, indicate interests others claim. Additional added stage proceedings, just. 21. rationale, joined more outside nevertheless proceed 19(b). tortfeasors, tort unable counterclaims offsets unrelated transactions.20 27 objections legal foundation rest. Courts Appeals, relied doctrine statutes waiving sovereign immunity strictly construed. attitude accurately reflected Judge Cardozo's statement Anderson Hayes Construction 243 N.Y. 140, 147, 153 N.E. 28, 29—30: involves hardship enough, consent withheld. add refinement construction, announced.' Affirmed. 30 BLACK dissents. DOUGLAS took case. 60 842, formerly codified U.S.C. 931 et seq. new Judicial Code became effective Sept. 1, 1948, pending appeal, embodied distributed through various chapters Code. (See 1948 Code, U.S.C.A. §§ 1291, 1346, 1402, 1504, 2110, 2401, 2402, 2411, 2412, 2671—2680). amended, 203, 203. When brought, accrued, 'such failure operate association, corporation, compensation.' seven circuits upheld State Farm Mutual Liability Cir., 172 737; 469; 374; South Carolina Highway Dept., 893; Old Colony 168 931; 206; Chicago, R.I. P.R. 377. Fifth conclusion, Hill, 404, Hutcheson dissenting. Reargument ordered full bench reconsideration, modified, 174 61, 63, concurring 'as views dissent expressed.' Formerly 931. divided immaterial changes, 1346(b) 2674, 1346(b), 2674. 2680, 2680. contention reargument Circuit, note 4. Petitioner's effect, controls method procedure recover. square 1032, anything Furthermore, require 17(a), disregarded, owns conducted old procedures prior promulgation Rules. admits much say 'repealed' incompatible incorporated justified. 170. Other sections unlawful Members penalized bribery undue influencing Congress, prohibited destruction withdrawal public records. See, e.g., 736, 861; Butler Goreley, 146 303, 311, 84, 87, 981; 719; Ball Halsell, 161 72, 79, 554, 555, 40 622; Price Forrest, 173 410, 421, 434, 437, 43 749; 356, 92, 275, 504, 951. example, intestacy, multiply well embroil claims. 42 1066, 215, 215. Reported Ops.Atty.Gen. 553. Holtzoff, Against Law Contemp.Prob. 318; Ill.L.Rev. 344, 349. 66, 224d, 224d. Report states 'Such leaves undisturbed, companies owners whose results, permits settle single necessity inquiry into, determination of, relative parties.' H.R.Rep. 78th 1st Sess., members aware problem carrier-subrogees demonstrated Committee's report, less weeks passage connection crash army airplane Empire Building. War recommended State, Inc., uninsured losses (which done) refused recommend losses. 6683 introduced 'to appropriate sum $143,279.94 fire-insurance satisfaction opinion, $1,000 Military 223, disapproved department's refusal certify over $1,000. To assertion barred contains denial: 'That fact' cites favorably acted Congress. bill reported, H.R.Rep.No. 2655, 79th nine days later passed, 131 (60 831) authorize extending retroactively accruing January 1945. Since involved accrued date, federal once interposed defense directly subrogees. rejected. Niagara 76 F.Supp. 850. 932. 8, supra. They 'indispensable' familiar test Shields Barrow, 1854, 130, 139, 158, 'an nature decree affecting interest, leaving controversy condition termination wholly inconsistent equity good conscience.' 674; Hubbard Manhattan Trust 87 F. 51; Rogers Penobscot Mining 154 606; ed.) 2178. 1346(c), confers 'counterclaim, demand whatever commencing action.' 71, 227, directs deduction allowed debts 'the indebted States.' (Italics added.) need consider lie insurer-subrogees. Cf. Munsey 1947, 332 234, 67 1599, 91 2022; Defense Supplies Corp. Lines 148 311.

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