Document: 332 U.S. 380 68 S.Ct. 1 92 L.Ed. 10 FEDERAL CROP INS. CORPORATIONv.MERRILL et al. No. 45. Argued Oct. 16, 1947. Decided Nov. 10, Mr. Harry I. Rand, of Washington, D.C., for petitioner. A. Merrill, Idaho Falls, Idaho, respondents. Justice FRANKFURTER delivered the opinion Court. We brought this case here because it involves a question importance in administration Federal Crop Insurance Act. 331 798, 67 1199. 2 The relevant facts may be briefly stated. Petitioner (hereinafter called Corporation) is wholly Government-owned enterprise, created by Act, as an 'agency and within Department Agriculture.' Sec. 503 Chapter 30, Act February 1938, 52 Stat. 72, 7 U.S.C. § 1503, amended, U.S.C.A. 1503. To carry out purposes Corporation, 'Commencing with wheat * crops planted harvest 1945' empowered 'to insure, upon such terms conditions not inconsistent provisions title determine, producers against loss yields due to unavoidable causes, including drought *.' 74, 508(a), 55 255, turn amended December 23, 1944, 713, 58 918, U.S.C.Supp. V, 1508(a), 1508(a). In pursuance its authority, Corporation on 5, 1945, promulgated Wheat Regulations, which were duly published Register 7, 1945. F.R. 1586. 3 On March 26, respondents applied locally insurance under cover farming operations Bonneville County, Idaho. Respondents informed County Agricultural Conservation Committee, acting agent that they planting 460 acres spring 400 these reseeding winter acreage. Committee advised entire crop was insurable, recommended Corporation's Denver Branch Office acceptance application. (The formal application itself did disclose any part insured reseeded.) May 28, accepted 4 July, most respondents' destroyed drought. Upon being notified, after discovering acreage had been reseeded, refused pay loss, litigation appropriately begun one lower courts trial court rejected contention, presented demurrer complaint, Regulations barred recovery matter law. Evidence thereupon permitted go jury effect no actual knowledge insofar precluded reseeded wheat, fact misled petitioner's into believing insurable Corporation. returned verdict all Supreme Court affirmed resulting judgment. 196, 174 P.2d 834. That adopted theory judge, since private company, circumstances case, would attributed to, thereby bind, equally bound. 5 doubt presents phases hardship. take granted that, basis what told local agent, reasonably believed their covered insurance. And so we assume could company. But It too late day urge Government just another litigant, charging liability, whenever takes over business theretofore conducted enterprise or engages competition ventures.1 partly public private, depending governmental pedigree type particular activity manner conducts it. through conventional executive agencies corporate forms especially defined ends. See Keifer & v. Reconstruction Finance Corp., 306 381, 390, 59 516, 518, 83 784. Whatever form functions, anyone entering arrangement risk having accurately ascertained he who purports act stays bounds his authority. scope authority explicitly Congress limited delegated legislation, properly exercised rule-making power. even though, here, himself have unaware limitations See, e.g., Utah Power Light Co. United States, 243 389, 409, 37 387, 391, 61 791; States Stewart, 311 60, 70, 102, 108, 85 40, see, generally, re Floyd Acceptances, Wall. 666, 19 169. 6 If explicit language prohibited acreage, ignorance restriction, either immaterial wheat. hardly define multitudinous details appropriate when entered Inevitably 'the conditions' valid can must agency Government. has legislated instance, modern regulatory enactments often does conferring power carrying policy. 516(b), 77, 1516(b), 1516(b). Just everyone charged Statutes at Large, provided appearance rules regulations gives legal notice contents. 49 502, 44 307, 307. Accordingly, binding sought come regardless hardship from innocent ignorance. oft-quoted observation Rock Island, Arkansas Louisiana R. 254 141, 143, 41 55, 56, 65 188, 'Men square corners deal Government,' reflect callous outlook. merely expresses duty observe treasury. 'terms Congress, creating liability preclude good reason thought obtained Indeed, only do limit if enacted directly, but incorporated reference application,2 specifically required Regulations.3 8 thus far assumed, parties below, controlling regulation coverage states term 'wheat shall include 1945 year, year.' 414.37(v) 1591. tempt read regulation, us it, charitable laxity. temptations hard elude clear meaning regulation. precludes 'spring Concerning validity 'not provisions' raised. 9 judgment reversed cause remanded further proceedings opinion. Reversed. 11 BLACK, RUTLEDGE, dissent. 12 JACKSON, dissenting. 13 I affirm decision below. contracts made are judged law State written, find error If, however, hold them subject federal declare is, see why should adopt rule recognizes practicalities business. 14 early discovered fair dealing contract between policyholder company embodied writings passed parties, namely written application, any, policy issued. well enough make some types long involved Register. my mind, absurdity every farmer insures knows contains there publication. peruse voluminous dull publication issued time order sure whether anything affects rights, never need insurance, get plant crops. Nor am convinced reading technically-worded enlighten him much event. 15 field issuance large numbers policies people engaged agriculture. expect lawyers, except rare instances, expected employ lawyer own issuing all. There fraud concealment, those represented taking apparently more suspected existence hidden render void than policyholder. very say corners. constitute one-way street. 16 asks lift control fashion govern them. respond request laying down same fundamental principles found essential progressive prevent investment disappointment. 17 DOUGLAS joins Judging legislative history pioneer. Private companies deemed all-risk great commercial hazard. Report Recommendations President's Insurance, H.Doc.No.150, 75th Cong., 1st Sess., pp. 2—4, 11—12; H.Rep.No.1479, p. 2; 81 Cong.Rec. 2866, 2867, 2887, 2891, 2893, 2895; Hearings before Subcommittee Senate Agriculture Forestry S.1397, 125, 185. affect issues. underscores undertaking ordinary undertaking, reenforces conclusion whereby rendered liable acts agents bodily applicable like unless provided. 'H. Acceptance understood agreed authorized representative evidenced approval effect, submitted accordance Regulations. amendments thereto, insured.' '§ 414.3. applications (a) regulations, thereto.' 'insurance contract' applicant virtue

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