Document: 345 U.S. 183 73 S.Ct. 596 97 L.Ed. 938 ORVIS et al.v.BROWNELL, Jr., Attorney General of United States. No. 404. Argued Feb. 4, 1953. Decided March 16, Mr. Donald Marks, New York City, for petitioners. James L. Morrisson, Washington, D.C., respondent. Justice JACKSON delivered the opinion Court. 1 This suit, under § 9(a) Trading with Enemy Act,1 asks a decree that petitioners have an interest in vested property Japanese nationals hands Alien Property Custodian, he holds subject to petitioners' attachment lien and must satisfy their judgment. The controlling facts are not controversy. involved were indebted petitioners, while third party, Anderson, Clayton & Co., was those Japanese. On June 14, 1941, Executive Order 8389, 12 U.S.C.A. 95a note, became effective as Japan, it blocked all transfers evidences debt or interests citizens. Thereafter, commenced suit against debtors state court, and, without obtaining license therefor, attached Co. credit on 25, 1943. Judgment obtained, whereupon applied federal permit pay it. application refused. 2 Meanwhile, 27, 1947, Custodian by res vesting order paid over Custodian. Petitioners filed notice present claim Act return property, which treated another retroactive license. dismissed insofar 9(a), based but left still is pending payment 34 Act. 3 difference between what denied important, if judgment create can be retrieved from will full. other hand, only allowable 34, unless granted priority apparently part, since appears claims considerably exceed funds Custodian's hands. 4 Both parties moved pleadings. District Court motion Appeals reversed.2 We certiorari.3 5 petitioning creditors here same position declaratory action Zittman v. McGrath, 341 446, 71 832, 95 1096, they judgments liens valid law enemy national whose credits attached. In first case, we held executive freezing did prevent such creating rights creditor debtor whom had elected succeed. second however, where vest administration purposes entitled possession, even attaching would been law. now called upon decide question presented these earlier cases: whether prevented thereafter acquiring 'interest, right, title' support Act.4 hold effect that, recognized determined relationships debtor, transfer could asserted 6 forbids 'transfers credit' any indebtedness ownership property,' Ruling 125 specifies this prohibition extends creation lien. Admittedly, made voluntary unlicensed assignment, created no interest. Admittedly also, consent its license, fund obtain cannot doubt administrative interpretations apply transaction general assent Government procedures recited extend so far recognize them effecting transfer. To interpret ignore express conditions extended. Realistically, reservations deprive much substance; should apparent face who chose litigate. opportunity settle accounts permission attach granted. 7 challenge statutory authorization order. It argued sole purpose duress credited residents occupied countries. Though one aims Act, language farther.6 validity implementation sustained Propper Clark, 337 472, 69 1333, 93 1480, adhere holding. also contend given power, similar bankruptcy 'annul' attachments. But lien, concededly because obtained prior order, may 'annulled' rather subsequent acquisition, attachment, 9 Because supremacy Federal matters within competence, permitting jurisdictional purposes, acquisition bind 9. 8 Section provides liquidation allowed priorities established. purpose. Judicial review provided. premature how treat accounting settlement his trust, proceeding seeks forestall claim. disagreement course pursued allowing creditors. view mandate assets shall 'equitably accordance provisions section', each some extent, rest own facts. do find either necessary possible inquire grounds mentioned 9, so, properly 10 recoverable He proceed administer according consider status thereunder, therein fail. 11 affirmed. CLARK took part consideration decision case. 13 DOUGLAS, FRANKFURTER concurs, dissenting. 14 34(a) With 60 Stat. 925, 'shall equitably section debts owed person owned property' A provided 34(g).1 But, unlike Bankruptcy 52 869, 96, does purport outlaw acquired certain periods specified conditions. 34(i) indeed recognizes there Custodian;2 way qualifies reason time acquisition. House Report, H.R.Rep. 2398, 79th Cong., 2d Sess., p. 15, quite explicit respects protection designed give secured claiming lien: 15 'Protection afforded proviso subsection (i). Such claimant creditor, thereby waiving security. addition alternatively, file title security just compensation respect interest, event recovery reduced, case plaintiff, extent him (or claimant, up payments). believed arrangement preferable provision separate special procedure creditors.' Thus, concedes, see Markham Cabell, 326 404, 66 193, 90 165; Clark Uebersee Finanz-Korporation, A.G., 332 480, 68 174, 92 88, debt, both. 16 meticulous protecting right possession vested. 1480; Lyon Singer, 339 841, 70 903, 94 1323; 471, 846, 1112. preferences judicial proceedings long enforcement interfere administration. supra; 1096. 17 Yet why concern preference possibility asserting it? Certainly establish prove 'As German debtors,' said 463—464, 842, 'the attachments secure law, cancelled annulled Vesting takes title, accounts.' If meant said, claimants (in case) more than unsecured They lawful proved proceedings. implies priority. reserved nature. granted, dissenting supra, at page 465, 843, then now. 50 U.S.C.App. U.S.C.A.Appendix, 9(a): 'Any ally money conveyed, transferred, assigned, delivered, seized hereunder Treasurer States * custodian oath form containing particulars require; President, therefor delivery President determine *. sixty days after filing above required institute equity Supreme Columbia district court resides claimed, established *.' 198 F.2d 708. 344 902, 283. April 10, 1940, Fed.Reg. 1400, amended 1941: '* All following transactions prohibited, except specifically authorized Secretary Treasury means licenses, involve foreign country designated Order, thereof, has date nature whatsoever, direct indirect: E. transfers, withdrawals exportations of, dealings in, 12, 21, 1942, 2991: '5(a) term 'transfer' mean actual purported act transaction, limitation foregoing include 5, 5: (T)he investigate, regulate, compel, nullify, void, prohibit, holding, withholding, use, transfer, withdrawal, transportation, importation exportation dealing exercising privilege to, involving, thereof 'Debt priority: (1) Wage salary claims, $600; (2) sections 191 193 31 Code, (h) hereof; (3) services rendered, expenses incurred connection services, rent, goods materials payments received claimant; (4) claims. No subordinate class which, (d) hereof, permits full every class.' proceeds barred pursuant brought section; nor deemed waived solely proceeding.'

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