Source: https://supreme.justia.com/cases/federal/us/352/36/
Timestamp: 2019-04-23 01:59:54+00:00

Document:
In an action brought by a trustee in New York state courts for a construction of the indenture and for an accounting, the Alien Property Custodian, later succeeded by the Attorney General of the United States, intervened and, in effect, tendered his claim to the entire property, by virtue of a vesting order issued under § 5 of the Trading with the Enemy Act, as amended. The state courts denied such relief, and no review was sought here. The Attorney General subsequently amended the vesting order and brought suit in the New York state courts, praying that the principal of the trust be transferred to him. The state courts denied the relief.
Held: principles of res judicata bar the present suit. Pp. 352 U. S. 37-39.
286 App.Div. 808, 143 N.Y.S.2d 623, affirmed.
The question in the case is whether petitioner, by virtue of a vesting order issued under § 5 of the Trading with the Enemy Act, as amended, 40 Stat. 411, 50 U.S.C.App. § 5, is entitled to the res of a trust established in 1928 by one Cobb and administered by respondent under an indenture. The trust was created for the benefit of the descendants of Bruno Reinicke who, by reason of his powers over the trust and his ownership of the right of reversion, was the real settlor.
"then the trust had failed, and all of the trust property should pass to the Attorney General under the vesting order as being property of alien enemies."
Chase National Bank v. McGrath, 301 N.Y. 602, 603-604, 93 N.E.2d 495.
in the trustee as long as the settlor was barred from asserting them. On appeal, the Appellate Division affirmed. Chase National Bank v. McGrath, 276 App.Div. 831, 93 N.Y.S.2d 724. The Court of Appeals, in turn, affirmed. Chase National Bank v. McGrath, 301 N.Y. 602, 93 N.E.2d 495. No review of that order was sought here.
Some years passed, when, in 1953, the Attorney General amended the vesting order by undertaking to appropriate "all property in the possession, custody or control" of the trustee. * In a suit in the New York courts, he asked, among other things, that the principal of the trust be transferred to him. The Supreme Court of New York denied the relief. The Appellate Division affirmed without opinion. Chase National Bank v. Reinicke, 286 App.Div. 808, 143 N.Y.S.2d 623. The Court of Appeals denied leave to appeal. Chase National Bank v. Reinicke, 309 N.Y. 1030, 129 N.E.2d 790. The case is here on certiorari, 350 U.S. 964.
powers which the settlor had over the trust, the trust must fail, and all the trust property must be transferred to him. In other words, the Attorney General tendered in the first suit his claim to the entire property. Cf. Young v. Higbee Co., 324 U. S. 204, 324 U. S. 208-209. Under familiar principles of res judicata, the claim so tendered may not be relitigated. Cromwell v. County of Sac, 94 U. S. 351, 94 U. S. 352. Tait v. Western Maryland R. Co., 289 U. S. 620, 289 U. S. 623. If he was not content with the first ruling, his remedy was by certiorari to this Court. Angel v. Bullington, 330 U. S. 183, 330 U. S. 189. Having failed to seek and obtain that review, he is barred from relitigating the issues tendered in the first suit.
MR. JUSTICE CLARK and MR. JUSTICE HARLAN took no part in the consideration or decision of the case.
* The state of war between this country and Germany was declared ended by the Joint Resolution of October 19, 1951, 65 Stat. 451. That Resolution contained, however, a proviso that all property, which, prior to January 1, 1947, was subject to seizure under the Act continued to be subject to the Act. The 1953 vesting order preceded by a few days the termination of the vesting program of German-owned properties announced by the President on April 17, 1953.

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