Document: 333 U.S. 541 68 S.Ct. 682 92 L.Ed. 863 CONNECTICUT MUT. LIFE INS. CO. et al.v.MOORE, Comptroller of State New York. No. 337. Argued Dec. 19, 1947. Decided March 29, 1948. Rehearing Denied May 3, Appeal from the Court Appeals Messrs. Ganson J. Baldwin, York City, and B. M. Anderson, Hartford, Conn., for appellants. Mr. Abe Wagman, appellee. Justice REED delivered opinion Court. 1 We are asked in this suit to consider validity h e Abandoned Property Law as applied policies insurance issued delivery on lives residents by companies incorporated states other than 2 Article VII Law, Consol.Laws, c. 1, headed 'Unclaimed Life Insurance Funds,' was enacted 1943. In 1944 law amended so cover out state.1 Section 700 that 'any moneys held or owing' life following three classes shall be deemed abandoned property: (1) matured endowment which have been unclaimed seven years; (2) payable death where insured, if living, would attained limiting age under mortality table reserves based (an varying 96 100), no transaction has occurred (3) insured died claim person entitled thereto made years.2 Other sections Art. provide corporations doing business make an annual report property falling within definitions § 700, lists advertised, advertised remains unclaimed, amounts due owing paid state comptroller care custody state. VII, 703, XIV, 1402; Finance 56, 95. Upon payment state, discharged any obligation, subsequently setting up a must file with comptroller. A penalty $100 day is provided failure required report. 1412. 3 The present brought nine companies, York, Supreme declaration invalidity plaintiffs, enjoin all persons acting authority taking steps statute. ruled void far it outside foreign companies. As appeal ruling taken not before us. reserved appellant right assert application thereof such action thereunder sought deprive them defense against policy. With above exceptions, upheld appellants' attack. Appellate Division affirmed reversed judgment further claims policies. its interpretation statute left open defenses except limitations, noncompliance policy provisions calling proof designated contingency surrender making claim. 297 N.Y. 74 N.E.2d 24. modification, trial court's judgment.3 perfected 237(a) Judicial Code, 28 U.S.C.A. 344, probable jurisdiction noted. 332 788, 103. 4 addition objections law, appellants raised their complaint consistently maintained impairs obligation contract meaning I, 10, Constitution deprives without process Fourteenth Amendment. Their argument Contract Clause transforms into liquidated previously only conditional. Due Process power sequester funds these meet companies' obligations 5 I. support first contention note terms insurer until submitted surrendered. They contend dispensing conditions merely conditional one liquidated. unless submitted, they will difficulty establishing complete partial defenses, fact understated his insurance, result suicide, military service, aviation, living good health when delivered. assume may find more difficult establish but we do regard unconstitutional because enforced variations provisions. 6 Unless alloe d take possession sums hands classified abandoned, retain contracted condition normally pay. think classification established describes fairly said subject ultimately escheat. claimants comply certain does affect our conclusion. properly custodian beneficiary person. 7 same seize bank deposits, Anderson National Bank v. Luckett, 321 233, 64 599, 88 692, 151 A.L.R. 824; Security Sav. People California, 263 282, 44 108, 301, 31 391, deposits court registry, United States Klein, 303 276, 58 536, 82 840. There are, course, differences between depositor withdraw deposit those collect insurance. Each, however, appropriate representations according requirements company. When undertakes protection claims, beyond reasonable requirement compel quite proper contracting parties. conservator, party contract. 1404; 95; supra, at page 241 U.S., 603 S.Ct., 824. 8 see constitutional reason why proceed administratively, here, over rather adopt plan through judicial supra. ample provision notice beneficiaries administrative hearing same.4 possible injury beneficiary. appropriation existed centuries common law. See pages 240 251 invalidating statutory Clause. 9 II. Nor agree lacks policies, chartered incorporation could moneys. say debt.5 ference refer specific assets company, simply company problem what another That question passed upon. To prevail appellee need show, he there moneys, power, whether sufficient contacts transactions here justify exertion residents. Appellants urge considerations should determinative choosing conservation indebtedness, corporations. It pointed residence missing policyholders unknown; shifting population changeable factor; chose corporation insurer, choice respected; escheat sovereignty guards time abandonment. practical matter, urged restricting conservancy avoids conflicts location simplifies corporations' reports Attention called presently statutes Pennsylvania,6 Jersey,7 Massachusetts.8 None apply respective states. Furthermore, argued analogous cases bank's incorporation.9 Finally reliance placed undisputed out-of-state main offices corporations, evidences intangible located carried on. 10 These reasons doubt weighed legislative consideration. dealing matter power. Power demand claimed construed courts, were upon then resident sustain thus interpreted exceptions. pass instances persons, after delivery, cease maturity interests parties represented affected conclusions types appear record, reserve conclusion York's situations. pursuant procedure directed funds. refused accept arguments invalidation federal grounds. This decision compelled theird efenses saved Appeals, reviewed issues decided favor. Consequently case controversy arising precise questions therein continues class Nashville, C. & St. L.R. Co. Wallace, 288 249, 259, 53 345, 346, 77 730, 87 1191; Walters, 294 405, 55 486, 79 949. Alabama Federation Labor McAdory, 325 450, 459—463, 65 1384, 1388—1390, 89 1725. circumstances. 11 been, years, close supervision regulation insuring citizens. recognition relationship. Prudential Benjamin, 328 408, 66 1142, 90 1342, 164 476.10 practiced regulation.11 Foreign obtain business, segregate securities, submit examination process. activities connected purchase place who Undoubtedly relationship very close.12 Certainly ciscussion, incorporation.13 point (297 27): 12 'For core debtor plaintiff created acts done laws, ties thereby validate asserted Legislature.' 13 statement hold had 14 specifically reserved. 15 Affirmed. 16 FRANKFURTER, dissenting. 17 My brother JACKSON'S opinion, I substantially agree, persuades me decline exercise case. wise practice governing adjudication requires it. For proceeding poses hypothetical questions, intertwined concern Circumstances compelling, surely record discloses led us sere recent avoid borrowing trouble declining adjudicate premature issues. 1725; Public Workers America Mitchell, 330 75, 67 556; Rescue Army Municipal Court, 331 549, 1409. 18 appearance few But heart conflicting several hotchpot undifferentiated obligations. proceeds 'abandoned' cannot, assume, seized once. Since rights liabilities growing vast extent, concerns two States, come conflict when, exigent search revenue, invoke opportunities lay aside drawn South-Eastern Underwriters Association, 322 533, 1162, 1440. 19 vigilant new sources already tap own exchequers impractical likewise. Only vital define nature particular fund constituting litigation, conceded, seeks test abstractly constitutionality providing turning her avails asks acknowledged. Of course enable courts comprehensive unrelated enforcement came existence circumstances differing significance. follow, adjudicated review. 20 sustained maturities basis insured's According view, JACKSON points out, change long policy, nonresidence beneficiary, time, become utterly immaterial. some familiar situations encompassed validation 21 purport affirm included judgment. fair, Court's enumerate below explicit putting side 'instances situation.' 'no instances' type record. Indeed, declines pass. refers frequency residet non-New beneficiaries, well extent holders residence. On pleadings, allegations accepted true. sure, lays reflecting situations, highest generalized But, indicated, fund. know even circumscribed affirmance 22 Whatever scope decision, decision. abstract assertion nor defined, compendiously defined go rejects. Instead, carves different limited indication anything feed. event mutilated everything else open, bound hatch brood future litigation. Claims domicile maturity, put presented though much decided. revenue-eager full potentialities. too special position control chartering powers domiciliary deceased asserts 'intangibles.' 23 How adjusted calls presentation various claims. Words seek restrict purporting small fragment truth organic complexity isolated part. effort circumscribe self-defeating. momentum own, nothing legal doctrines faculty self-generating extension. ought decide interrelated duly pressed mature interrelation reached. All preventive adjudication—the avoidance truncated indeterminate scope, inevitable duty reconsidering unconsciously being influenced implicit overtones decision—require await ripening contest concrete 24 way secure determination variant precisely settlement controversies among conferred original If Florida, Massachusetts, Texas bring levy tax respect succession, 306 398, 59 563, 830, 83 817, 121 1179, fitting bar reflection protect present. essential adjustment each haves ome relation give rise undoubtedly Until peck abstract, way. 25 dismissed. 26 JACKSON, whom DOUGLAS joins, 27 myself unable join cannot facing, reserving upon, inherent either actually constructively never citizen declaratory Act therefore passing entirety abstract. nonresident purports every unchallenged alleges Comptroller's instructions removal issuance Act. statute, written affirmed, obviously intends reach provides binding publication (§ 702(2)), that. Moreover, most importantly, reaching judgments affirm, Special Term while holding features invalid, expressly considered indicated disagreement. Our necessarily sustains whole particulars. perhaps unfortunate manner. case, contested adversary show facts transactions, better talking about. since can us, ignore certainly occurs frequently embraced both below. 29 Neither contemplates owner escheat, facts: Thus, solely irrespective times whose takes. man's one-time Further, seizure today assured's matured, prior date, which, view long-term contracts, many years ago. 30 effect upholding 'issued delivery' shows 'sufficient transaction,' owned lived State. Even concept transaction' vague helpful defining bounds state's given enlightenment events regarded 'sufficient,' jurisprudential context term 'contact,' seems vernacular tell thinks controlling 'transaction' is. 'contacted' transaction, seem issued, premiums paid, delivered, delivery.' maturing claim, less 'contact' sometime remote later one, weakness fully revealed cut off escheating (unless multiple escheats), although tests closer 'contacts' part transaction. step beneficiary's shoes there, how deny circumstances: maturity. always resided last known reside. proved longer insured. (4) removed (5) actual permanent domicile, opposed mere (6) (7) discharge located. foregoing understand term, combination persuasive grounds affirming so. 32 am unmindful pronouncement excepts approval policy.' cases, says determined state? issue 'sufficiency contacts' settled premises lead inescapably equally (i.e., contacts') Are going repudiate reasoning invokes impeccable and, hence, double liability escheat? remain uncommitted self-delusive accompanied, commitment factors shape 'reserved.' 33 doctrine applying consistent application, leaves dilemma: sustaining broad similar render liable payments single liability. impale ourselves, along horn dilemma, faut Constitution. 34 juridical rested, farther itself expounded Judge Cardozo. Escheat survives 'incident sovereignty,' personal real estate. Matter (Melrose Ave.) 234 48, 136 N.E. 235, 237, 1233. means nothing; exists something someone. usual examples incidents are: 35 First, sense dominion escheated. may, unto lands fail private owners want heirs, tangible lost also 'the bank, incurred performed located, hence dominion.' 603, 151, 391. neither constructive now escheated out-of-the-state stretch imagination dominion. And generate 36 Second, person, citizen, stepping claimant property. form government presupposes dual allegiance. general allegiance resident, Amendment, citizen. status, lasts, subjects him rely citizens bases non-resident's issued. beneficiaries' payments, ceased? migrate Union another, cf. Edwards 314 160, 62 164, 86 119, carries it, necessity, expatriation, Nation contended. fasten adheres life. heard denied makes intent sufficiently clear, migration end him. reaches third-party consequence follows life, deliberately acquired 37 Consideration conventional estal ish superior incident sovereignty. mentioned conflict. exists. Pennsylvania, apparently relying theory chartered, Can take, saying Pennsylvania give? Do pay twice? pertinent involved action. 461, 1389, 38 entertain extemporized generalities like recognized standards having definite connotations interest questions. sole heard. mobility create confusions look standard own. unnecessarily confound best confusion, removing landmarks erected error. Cf. dissenting concurring Duckworth Arkansas, 390, 311, 294, 138 1144; Tax Commission Aldrich, 316 174, 1008, 1358, 139 1436; Williams North Carolina, 317 287, 63 207, 279, 143 1273; General Trading Company Commission, 335, 1028, 1309; International Harvester Wisconsin Department Taxation, 435, 1060, 1373; Northwest Air Lines Minnesota, 292, 950, 1283, 153 245; Greenough Assessors, 1400, 172 329; Bob-Lo Excursion Michigan, 28, 358; others, probably, yet come. 39 While evade competition 'escheats' force lawyerlike definition subject. naive office lately manifest reflects solicitude unknown claimants. did states' might reconcile easily. newly exploited, discovered, source revenue. Escheat, motive savors publican guardian. relevant caution precision use least foreclosing founded ones. 40 require fairness them, kind 1937. June 25, 1937, Pamphlet Laws 2063, Purdon's Pa. Stat., Title 27, 434. alleged, denied, laws force. 'escheats,' says, Pennsylvania. escheats regardless Its patent immediate. without, herei ndicated, striking down ch. 923, 1939, attacked unconstitutional, Ins. Pink, Sup., N.Y.S.2d 612, Ch. 602, 1940. 1943 Acts re-enacted Law. 697, enacted, extending question. Chs. 497, 498, 1944. represents deliberate issuance, 41 outlined herein, express disapproval below, certify legislation deal involving facts. overreaches sister set forth. 923 1939. covered Chapter 602 1940 697 reenacted principal earlier cc. 497 498 2) applicable 452 1946 second acquire '§ 700. Unclaimed '1. '(a) Any remained appearing '(b) kinds would, thirty-first December next preceding section hundred based, exclusive '(i) assigned, readjusted, kept premium, reinstated subjected loan, '(ii) evidence received knowledge thereof. '(c) ofr esidents died, years. '2. receive satisfaction abandoned.' 187 Misc. 1004, 143; Id., 271 App.Div. 1002, 69 323; 1404: custody, conversion prescribed fourteen chapter, heretofore individual dollar chapter nineteen forty-two; hereby assumed benefit same, responsible lawful deductions, fund.' §§ 702, 1402, 1406(1)(a) and(b), 242 604 Compare Airlines 293, 951, 245. Penna.Stat., 434—437. N.J.Rev.Stat. 17:34—49—34—58, N.J.S.A. 455, Mass.Acts Resolves (1946). supra; re Rapoport's Estate, Mich. 291, N.W.2d 777. An old 143(2). 42, 59, 103, 143, 208(5), 216(6). Curry McCanless, 307 357, 900, 1339, 123 162. Shoe Washington, 326 310, 320, 154, 95, 161 1057: 'It evident forum just traditional conception fair play substantial justice, permit enforce there.' England Mutual Woodworth, 111 138, 364, 379; Ex parte Schollenberger, 369, 377, 853; Morgan Benefit Co., 189 447, 438.

Category: 7