Document: 457 U.S. 85 102 S.Ct. 2325 72 L.Ed.2d 694 Kenneth CORY, Controller of the State California, et al., Petitioners,v.Mark WHITE, Attorney General Texas, al. No. 80-1556. Argued Jan. 18, 1982. Decided June 14, Syllabus Both Texas and California assert right to levy state death taxes on estate Howard Hughes, taxing officials each claiming that Hughes was domiciled in their at time his death. The administrator filed an action Federal District Court under Interpleader Act, alleging respective were seeking tax basis inconsistent claims. dismissed for lack subject-matter jurisdiction because failure satisfy Act's requirement there be diversity citizenship between least two adverse parties. Appeals reversed, holding requisite present County Treasurer Los Angeles County. court rejected State's claim although suit nominally against officials, it effect a sovereign States barred by Eleventh Amendment. Held : Amendment bars statutory interpleader action. Worcester Trust Co. v. Riley, 302 292, 58 185, 82 L.Ed. 268. Contrary Appeals' view, Edelman Jordan, 415 651, 94 1347, 39 662, did not overrule Pp. 89-91. 629 F.2d 397 (5th Cir. 1980), reversed. Jerome B. Falk, Jr., San Francisco, Cal., petitioners. O. Clayton Lilienstern, Houston, Tex., respondents Lummis, Rick Harrison, Austin, White Bullock. Justice WHITE delivered opinion Court. 1 In this case, both Hughes. laws impose inheritance real tangible personal property located within its borders, upon intangible personalty, wherever situated, person Under individual has but one domicile any time. Taxing issue before us is whether 28 U.S.C. § 1335, provides jurisdictional resolution claims States. 2 * This case sequel 437 601, 98 3107, 57 464 (1978). There, petitioned leave file complaint Court's original jurisdiction. At time, we denied motion. concurring opinions, however, four Justices suggested determination Hughes' might obtained federal district pursuant 1335.1 3 Three weeks after decision United Western Texas. 491 F.Supp. 5. Asserting death, requested adjudicate domicile. entered temporary restraining order prohibiting from pursuing domicile-based other forum, including own courts. 4 then 1335 claimants. It found claimant. Among claimants, held citizen purposes, citing Moor Alameda, 411 693, 93 1785, 36 596 (1973). ruled, rather than opposing claimant itself Postal Telegraph Cable Alabama, 155 482, 15 192, 231 (1894), involve or more claimants diverse as required statute. 5 Fifth Circuit reversed dismissal. Lummis White, (1980). addition Treasurer, estate, Nevada, purposes interpleader. recognized Treinies Sunshine Mining Co., 308 66, 60 44, 84 (1939), disinterested stakeholder could considered determining Reasoning, here administrator's legal duty preserving estate's assets double liability assertion which no tax, made interested stakeholder, further may establishing 1335. diversity—between County—was therefore present. 6 went reject States' Recognizing 268 (1937), had squarely all critical respects similar Amendment, Appeals, relying views 662 (1974), silently, effectively, overruled Worcester, interpreted bar 7 certiorari and, same new motion Because troubling issues involving federal-court such disputes, granted certiorari. 452 904, 101 3028, 69 404. II 8 supra, Massachusetts claimed decedent have assess entire estate. A followed, naming defendant revenue officers Massachusetts. unanimously reality arriving conclusion, applied accepted rules (1) "a individuals, otherwise affecting officers, substance state, Constitution forbids," U.S., 296, S.Ct., 186, (2) "generally, suits restrain can, consistently with constitutional prohibition, prosecuted only when sought restrained without authority law contravenes statutes States." Id., 297, 187. credible violation since clear prior cases determinations courts taxpayer raise substantial question. also concluded acting insufficient. Hence, "[s]ince proposed performance imposed statute through whom alone can act, restraint action, bill prays, forbids." 299-300, 187-188. 9 Jordan rested passage limiting "by private parties must paid public funds treasury." 663, 1356. plaintiff, prospective relief, appellate suit. 10 We are unpersuaded view Edelman. That involved administration particular federal-state program contrary regulations Constitution. things, plaintiffs judgment benefits been them. who allegedly violating law, arguably fell outside reach Ex parte Young, 209 123, 441, 52 714 (1908). held, payable demanded. correctly noted Ford Motor Department Treasury Indiana, 323 459, 65 347, 89 389 (1945), result. 11 hold, never applies unless money treasury sought.2 would novel proposition indeed does enjoin simply sought. reads: "The Judicial power shall construed extend equity, commenced Citizens another State. . ." Thus, terms clearly injunction, remedy available equity. To adopt rule, strictures judgment, ignore explicit language contradict very words itself. embrace, much less imply, proposition. 12 Neither deal officer defendant, either law. occasion cite discuss unanimous they alleged hold permissible if relief Whether preferable it. 13 Furthermore, major part overruled. unwilling, narrow scope extent entail. case. 14 Reversed. BRENNAN, judgment. 16 (1978), I joined denying California's complaint. should denied, "at until shown cannot will brought." 602, 3108. stated "not so sure as" Stewart POWELL Florida, 306 398, 59 563, 83 817 wrongly decided. See id., 606, 3110 (Stewart, J., concurring); 615, 3116 (POWELL, concurring). 17 Substantially reasons set forth Court, now me long remains good practical solution problem potential taxation presented these. As persuasively argues Part III dissenting opinion, later cases, construing Due Process Clause, undermined County's unfairness conflicting rise dimensions. And surely correct observing "[t]he threat multiple based solely incompatible structural principles system recognizing 'fundamental' travel." Post, 2334. 18 But overruled, provide possibility duplicative think appropriate exercise our decide controversy. agree Professor Chafee, quoted post, 101, "[s]omewhere [the] able find remedies frictions creates." Where exists—even class falling Florida —it employed. circumstances just prudent, likely accordance Framer's intent. 19 POWELL, MARSHALL STEVENS join, dissenting. 20 today decides arising facts, instant 164, 2335, 755. efforts late Each asserts Yet recognize 21 avoid unfair, invoked Act1 means litigating proceeding. complaint, domiciliary Nevada. App. 10.2 22 holds dispute unfair. Nor deny burden ordinarily fall, States, heirs address these directly. Rigidly applying aged indefensible precedent, denies forum resolve 23 Having domicile, surprisingly concludes today's 755, presently exists justiciable controversy "between" those actually domicile.3 cases—both decided facts—cannot reconciled. prohibition mere suffice establish finding ripe decision, rely contingency: first, win judgments subject taxation; second, large enough too speculative foundation support conclusion appropriately 24 my decisions rest misconception rights obligations created system, aspects. Accordingly dissent. 25 substantially identical one-sentence explain decline exclusive over controversies Stewart, joined, fully agreeing existed States.4 He argued cogently "contain[ed] seeds distinct lawsuits": 26 "One proper division finite sum money. nature settle question decedent's all, certainly yet meaning term." 610-611, 3113. 27 No material fact changed 1978. On premises still California. 170, 2338 dissenting).5 There is, about States—a kind ought available. 1978 invoke Act protect Contradicting message conveyed finds unavailable ground 29 opinions "fiction" (1908), bring defendants otherwise. According lawful function litigate accordingly colorable excess law; alleged; read narrowly retain injunctive unlawfully, even damages treasury. 30 doubt admit broader construction. plain treasury," 1356, actions "fiscal consequences treasuries [that are] necessary result compliance decrees [are] nature," 667-668, 1358. this, continue believe resort proscribed Jordan. 31 rejecting interpretation Edelman, relies last (1937). If "were law," reasons, "Worcester overruled." Ante, 91. light 1937, assumptions longer uniformly valid. 3108 (BRENNAN, defended internal logic adherence principles, bound 32 continues reason premise, County, offend Constitution—even concede domicile.6 premise wrong. alternative approach embraced prepared point domicile—at insofar "domicile" treated indivisible, State—is structure system. 33 demonstrated (1939)—that identifiable analogy interpleader—can explained concern "the plight confronted 'substantial likelihood' claims." 3111. focus justification rests today. direct faced principled fact, bare exhaust completely. 611, 3113.7 unfair offensive Clause Fourteenth B 34 Our rationally related " 'values connected state.' Moorman Mfg. Bair, 267, 273, 2340, 2344, 197 quoting Norfolk & R. Missouri Tax Comm'n, 390 317, 325, 88 995, 1001, 1201 (1968). framed Frankfurter Wisconsin J. C. Penney 311 435, 444, 61 246, 250, 267 (1940): 35 "Th[e] test taken due process or, paraphrase must, exerted bears fiscal relation protection, opportunities given state. simple controlling anything ask return." generally taxed where located. Curry McCanless, 307 357, 364, 900, 1339 (1939).8 Physical presence justify succession transfer occasioned owner. Treichler Wisconsin, 338 251, 70 1, (1949); Frick Pennsylvania, 473, 492, 45 603, 605, 1058 (1925). 37 contrast property, physically place, sense.9 Moreover, significant connection property—for example, trust's administered trustee domiciled. supra. differences, upheld property. done not, fundamental principle values protections afforded. 38 Texas—as most appear settled adequate dependent protection laws. 365-366, 904-905; cf. Complete Auto Transit, Inc. Brady, 430 274, 286-288, 97 1076, 1082-1084, 51 326 (1977) (defining Commerce limits connections conferred State). Here neither alleges entitlement basis. From follows predicate asserted Clause.10 course, true 1937 268, admitted already undermined, intervening reiterating see 323-326, 999-1002, income, see, e.g., Mobil Oil Corp. Commissioner Taxes, 445 425, 436-442, 100 1223, 1230-1234, 63 510 (1980), travel. See, Dunn Blumstein, 405 330, 92 274 (1972); Shapiro Thompson, 394 618, 1322, 600 (1969). moving risks incurring While single charged creating risk, existence defended. "fundamental" C 40 By prohibited lay disputes threatened liability, relevant thus capacities Young competing satisfied. 41 Zechariah father statute, argued: "It creates taxation. Somewhere Since 1936, 49 Yale L.J. 377, 388 (1940). 42 free intangibles remedy. 43 otherwise, respectfully provides: "(a) civil person, firm, corporation, association, society having custody possession $500 more, issued note, bond, certificate, policy insurance, instrument value amount providing delivery payment loan value, being obligation written unwritten "(1) Two defined section 1332 title, entitled virtue obligation; plaintiff deposited into registry court, abide bond clerk surety judge deem proper, conditioned future respect matter "(b) Such entertained titles do common origin, identical, independent another." dissent mischaracterizes asserting "only" damages. 96. rule "that Amendment," ones barred. Nevada imposes appeared party. apparently suffer Other estates presumably fortunate. BRENNAN tentatively accepting Stewart's stating he "deny motion, opinion. 3115-3116. main distinguishing situation seems "it seemed several Members [in 1978] obviate need jurisdiction." 168, 2337. argument unresponsive actual properly invoked. notes "several uncertainties" disappeared. 169, 2338. arguments makeweights. Until courts, "dispute money" comprising 610, 3113, (1978) dissenting). viewed context history hardly consistency. Only seven years Farmers Loan Minnesota, 280 204, 50 98, 74 371 (1930), Blackstone Miller, 188 189, 277, 47 439 (1903), forbids intangibles. For established person's First National Bank Maine, 284 312, 174, 76 313 (1932). reached state-court adjudications consequent assessment violate Clause. Comm'n Aldrich, 316 181, 62 1008, 1011, 86 1358 (1942), per se "If possible great, greater, pay "When speak land chattels exclusively located, mean benefit enabling owner enjoy fruits ownership restricted whose territory others. states said tangibles if, location elsewhere, afford taxed. 904. 905, (1939): "Very different considerations, theoretical practical, apply intangibles, physical things. relationships persons, natural corporate, recognizes attaching them certain sanctions enforceable government gives control thing. They effective afforded persons origin rights." 383-384 (1940) (footnotes omitted): "[T]here types kind, theories. taxation, theory governments disagree vital fact. falls class. levied man was, domicile? surprising almost attacks directed first second unjust. [I]t highly tell taxpayer, 'You tax,' make him twice. injustice brought out regard remedy."

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