Source: https://supreme.justia.com/cases/federal/us/310/32/
Timestamp: 2019-04-25 22:01:11+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 310 › Veix v. Sixth Ward Building & Loan Assn.
1. On appeal under Jud.Code § 237(a) from a judgment of a state court sustaining the constitutionality of a state statute, this Court does not consider the application of later amendatory statutes which were not considered by the state court in its opinion. P. 310 U. S. 36.
2. For the sake of safeguarding the solvency of building and loan associations in the public interest, a state legislature may, independently of emergency and consistently with the contract clause of the Constitution, restrict the rights of certificate holders, existing under statutory regulations in force when they acquired their certificates, to withdraw or recover by suit the amounts of their certificates. P. 310 U. S. 38.
month being assigned to this purpose; if not paid in six months, the shareholder could recover withdrawal value by suit. The amendatory Act, here sustained, defined the receipts from one-half of which withdrawals were to be satisfied, provided that if, in any month, the funds payable for withdrawals were insufficient to pay all withdrawing members, they were to receive $500 each in the order of priority until the fund for withdrawals was exhausted; withdrawal payments were subordinated to payment of matured shares, and, so long as the funds of an association were applied as required by the amendment, no member could sue for the withdrawal value of his shares. Pp. 310 U. S. 34-36.
123 N.J.L. 356, 8 A.2d 350, affirmed.
Appeal from the affirmance of a judgment dismissing the complaint in the suit brought by Veix against the Building & Loan Association to recover the amount of his paid up shares, with interest.
In 1935, another amendment was passed providing that one-third of the "net receipts" of an association were to be payable for withdrawals, with "net receipts" defined as monies, other than borrowed monies, received by the association less operating expenses, payments on creditor obligations, payments for protecting the property of the association, and reserves for any of these purposes. At the same time, payments of withdrawals in the order in which notices had been received was continued, but the payments were limited to $50 per member.
Minor amendments, not pertinent here, were added in 1936 and in 1937; the statutes, as they stood in 1936 with some immaterial changes, were carried into a general revision of New Jersey's statute law.
On August 17, 1932, after the passage of the 1932 amendment, appellant filed a written notice of withdrawal with respondent. In 1939, he brought this suit against respondent for the withdrawal value of his shares, claiming that, insofar as any of the amendments referred to altered the statutes in existence at the time of purchase of the shares, the amendments were unconstitutional violations of the contracts clause of Article I and the due process clause of the Fourteenth Amendment. The allegations show that the Association was solvent at the time of notice of withdrawal, and has remained solvent. The trial court dismissed appellant's complaint. The Court of Errors and Appeals affirmed. 123 N.J.L. 356, 8 A.2d 350.
This power of the state to protect its citizens by statutory enactments affecting contract rights, without a violation of the contract clause of the Constitution, is analogous to the power often reserved to amend charters. Under this reserved power, it is held that the relations between a stockholder or certificate holder and the corporation may be varied without impairing the contract existing between the corporation and its stockholder or member. [Footnote 17] The contract rights considered in Coombes v. Getz [Footnote 18] arose from a contract between a third party and the corporation. And the power reserved against the corporation and its members was deemed to be ineffective against a stranger to the reservation.
withdrawal. From all the circumstances of the Louisiana building and loan situation at the time of the legislation attacked in the Treigle case, this Court reached the factual conclusion that the withdrawal amendment to the building and loan statutes was directed merely toward a private right, and not deemed in the public interest.
Cf. Bucsi v. Longworth B. & L. Assn., 119 N.J.L. 120, 194 A. 857, where the same court dealt with statutes enacted after notice of withdrawal.
Cf. Carpenter v. Wabash Ry. Co., 309 U. S. 23.
Bucsi v. Longworth B. & L. Assn., 119 N.J.L. 120, 124, 194 A. 857; Laws of N.J. 1903, c. 218, § 38; Laws of N.J. 1925, c. 65, § 49; Laws of N.J. 1932, c. 102; Revised Statutes of N.J. 1937, 17:12-49, 12-53.
Hopkins Savings Assn. v. Cleary, 296 U. S. 315, 296 U. S. 328; cf. Piquet, Building & Loan Associations in New Jersey, cc. II, VI and X.
Dillingham v. McLaughlin, 264 U. S. 370; Noble State Bank v. Haskell, 219 U. S. 104; Doty v. Love, 295 U. S. 64.
Stockholders v. Sterling, 300 U. S. 175, and cases cited.
Rast v. Van Deman & Lewis Co., 240 U. S. 342, 240 U. S. 363; Semler v. Dental Examiners, 294 U. S. 608, 294 U. S. 610.
290 U. S. 290 U.S. 398, 290 U. S. 434 et seq.
Stone v. Mississippi, 101 U. S. 814, 101 U. S. 819; Douglas v. Kentucky, 168 U. S. 488, 168 U. S. 497-499; Boston Beer Co. v. Massachusetts, 97 U. S. 25, 97 U. S. 32-33; Mugler v. Kansas, 123 U. S. 623, 123 U. S. 664-665; Northwestern Fertilizing Co. v. Hyde Park, 97 U. S. 659, 97 U. S. 667; Butchers' Union Co. v. Crescent City Co., 111 U. S. 746, 111 U. S. 750; Chicago, B. & Q. R. Co. v. Nebraska, 170 U. S. 57, 170 U. S. 70, 170 U. S. 74; Texas & N.O. R. v. Miller, 221 U. S. 408, 221 U. S. 414; Atlantic Coast Line R. Co. v. Goldsboro, 232 U. S. 548, 232 U. S. 558; Manigault v. Springs, 199 U. S. 473.
Sproles v. Binford, 286 U. S. 374, 286 U. S. 390; Stephenson v. Binford, 287 U. S. 251, 287 U. S. 276; Henderson Co. v. Thompson, 300 U. S. 258, 300 U. S. 266; Patterson v. Stanolind Co., 305 U. S. 376.
Union Dry Goods Co. v. Georgia P.S. Corp., 248 U. S. 372; Midland Realty Co. v. Kansas City Power Co., 300 U. S. 109.
Marcus Brown Co. v. Feldman, 256 U. S. 170; Levy Leasing Co. v. Siegel, 258 U. S. 242.
Home Bldg. & L. Assn. v. Blaisdell, supra, 290 U. S. 426.
Cf. W.B. Worthen Co. v. Thomas, 292 U. S. 426, 292 U. S. 432.
Wright v. Minnesota Mutual Life Ins. Co., 193 U. S. 657, 193 U. S. 663; Polk v. Mutual Reserve Fund, 207 U. S. 310, 207 U. S. 325; Stockholders v. Sterling, 300 U. S. 175, 300 U. S. 183.
285 U. S. 285 U.S. 434.
297 U. S. 297 U.S. 189.
Id., 297 U. S. 197.
Cf. Indiana ex rel. Anderson v. Brand, 303 U. S. 95, 303 U. S. 108.

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