Document: 467 U.S. 512 104 S.Ct. 2549 81 L.Ed.2d 446 FRANCHISE TAX BOARD OF CALIFORNIAv.UNITED STATES POSTAL SERVICE. No. 83-372. Supreme Court of the United States Argued April 17, 1984. Decided June 11, Syllabus After determining that four employees appellee Postal Service were delinquent in their payment state income taxes, appellant Franchise Tax Board California served process on ordering it to withhold amounts from employees' wages pursuant a provision Revenue and Taxation Code. When refused comply, filed an action Federal District Court, alleging was liable under Code for failing honor orders. The entered summary judgment appellee, holding 5 U.S.C. § 5517, which authorized agreement had made regarding withholding taxes federal pay, applied only anticipated tax liabilities not liabilities. Appeals affirmed, rejecting appellant's argument 39 401(1), provides may "sue be sued its official name," waived any sovereign immunity might possess. Held: administrative type employed by issues against has been "sued" within meaning must respond process. Pp. 516-525. (a) Not this liberally construe sue-and-be-sued clause but also presume appellee's liability is same as other business. FHA v. Burr, 309 242. No showing overcome presumption. Since order cannot issue unless owes employee wages, nothing stakeholder; effect ability operate efficiently does employer subject statute. 516-521. (b) It would illogical conclude Congress differentiated between issued agency such court, even if court withhold, neither nor materially different position. In operation effect, orders are identical judgment, since they give rise binding obligation pay assessed amounts. Neither obtain additional protections requirement contested until after paid refund brought. Moreover, 401(1) require issuance judicial before need create unwarranted disruption State's collection process, while simultaneously depriving some efficacy. 521-525. 698 F.2d 1029 (CA9 1983), reversed remanded. Patti S. Kitching, Los Angeles, Cal., appellant. David A. Strauss, Washington, D.C., appellee. Justice STEVENS delivered opinion Court. 1 Appellant, California, determined taxes. directing delinquencies 18817 Code, authorizes employee's salary transfer those funds Board.1 question presented whether obligated these "orders withhold." 2 * comply with Central asserting orders,2 invoking jurisdiction 409(a) 28 1339.3 Service. held employees, applies liabilities.4 agreeing 5517 excused complying Employment Development Department Service, 1983).5 rejected Board's did prohibit orders, declaring name" possess.6 This appeal followed.7 3 argue thereto respect employees.8 To contrary, expressly concedes amenable could required garnishment requiring satisfy court.9 Instead, contends although obey order, retains levies. argues can waives suit, apply proceedings. II 4 dispute proposition that, waived, prevents creditor collecting debt through garnishee salary. See Buchanan Alexander, How. 20, 11 L.Ed. 857 (1845). Rather, places primary reliance indicates sued." Thus case statutory waiver extends withhold. construed statute providing created Congress—the Housing Authority—was empowered "to sue sued," 242, 60 488, 84 724 (1940). Burr court. began observing: "Since consent 'sue sued' given Congress, problem here merely involves determination or comes scope authorization." Id., at 244, S.Ct., 490. continued: 6 "[W]e start premise waivers governmental instrumentalities should construed. policy line current disfavor doctrine evidenced increasing tendency waive where corporations concerned. . Hence, when establishes agency, engage commercial business transactions public, permits sued,' lightly assumed restrictions authority implied. Rather general delimited implied exceptions, clearly shown certain types suits consistent constitutional scheme, restriction necessary avoid grave interference performance function, reasons plainly purpose use narrow sense. absence showing, presumed launched into world endowed less than private enterprise like circumstances be." 245, 490 (footnote omitted).10 7 then explained why fell immunity: 8 "Clearly words normal connotation embrace all civil incident commencement continuance legal Garnishment attachment commonly part parcel provided statute, debt. [H]owever denominated, equitable, whenever available, prior final well-known remedy available suitors. say intend include deprive efficacy." 245-246, 490-491 (footnotes citation omitted). 9 If anything, broader Burr. passing Reorganization Act 1970, Stat. 719, indicated power settle compromise claims it," 401(8), "[t]he provisions chapter 171 title relating tort shall arising out activities Service." 409(c).11 have intended preserve Service.12 wished run more predecessor, Post Office Department.13 10 Here, "well-known" true involved "launched [the Service] world"; hence we clause, Service's precisely creates no greater inconvenience Burr.14 Indeed, contains direction writ attempts distinguish observing limited cases "sued," arguing because rather 401(1). crabbed construction overlooks our admonition accomplished "a ritualistic formula"; intent ascertained reference underlying congressional policy. Keifer & Reconstruction Finance Corp., 306 381, 389, 59 516, 517, 83 784 (1939).15 case, level practicality 12 California's makes clear there meaningful difference Under law assessment validly taxpayer16 operates impose absolute except seeking already paid. Indeed unequivocal employers withhold—no defense permitted.17 Thus, assessment, way functionally indistinguishable law; make date certain: 13 "Once taxpayer will owe amount fixed arrives. Default meeting obligations calls procedure whereby enforced. remit Government wherein offer he had. A him collected levy execution. But life-blood government, prompt availability imperious need. Time mind, therefore, resorted drastic means collection. force due, officials seize debtor's property debt." Bull States, 295 247, 259-260, 55 695, 699, 79 1421 (1935).18 14 They amounts; judgment. brought.19 At time, construing machinery taxes,20 "some efficacy"—a result inconsistent 15 There thus reason believe meaningless procedural take approach 40 years ago—"to impute desire incoherence body affiliated enactments differentiation justifies none." Keifer, U.S., 394, 520.21 kind, treated similarly self-sustaining ventures. Accordingly, hold process.22 16 reversed, remanded further proceedings opinion. 17 so ordered. pertinent part: "The notice, personally first-class mail, having [its] possession, control, credits personal things value, belonging tax, interest, penalties due transmit withheld times designate. ." Cal.Rev. Tax.Code Ann. (West 1983). 18818 1983) ("Any person service notice Section amounts"). 1339 vests district courts over provides: "Except section 3628 title, original exclusive actions brought Any State party removed appropriate alternative, obligating However, disagreed Court's concluding authorize Judge Schroeder dissented, constituted including embodied While many §§ constitutionally Therefore, predicate Appeals' enforcement invalid Supremacy Clause Constitution. Grace Brethren Church, 457 393, 405-407, 102 2498, 2506-2507, 73 93 (1982); Clark, 445 23, 26, n. 2, 100 895, 899, 63 (1980). 1254(2). City Detroit Murray 355 489, 78 458, 441 (1958). As text clear, simply agreements otherwise without enter, limits agreements. concern amenability 401(1): "(a) statute— "(1) either imposing generally duty sums making returns State, granting voluntarily elects withheld; "(2) imposes grants who residents State; Secretary Treasury, regulations prescribed President, enter 120 days request proper official. provide head each requirements whose regular place employment made. "(b) application burdensome employers, subjects penalty section. An accept services performed agency." Brief Appellee 13-15. fact, garnished Financial Management Manual 431.1(g) (1978); see CFR 211.2(a)(2) (1983). Accord, Corp. J.G. Menihan 312 81, 84-85, 61 485, 486-87, 85 595 (1941); Shaw, 495, 501, 659, 661, 888 Petty Tennessee-Missouri Bridge Comm'n, 359 275, 280-281, 785, 789, 804 (1959); Brady Roosevelt S.S. Co., 317 575, 580, 425, 428, 87 471 (1943). National Bank New York Republic China, 348 356, 359, 75 423, 426, 99 389 (1955) ("[E]ven enjoyed territorial favored test time. increasingly found conflict growing subjection moral judgment"). Frankfurter, writing unanimous Term foreshadowed Burr's "Congress forty discharging functions, exception included. Such firm practice partly indication present climate suit disfavor, reveals definite attitude hospitable scope." 390-391, 518-519, (1939) Chapter Title governs Tort Claims Act, 2671-2680. nearly universal conclusion lower constitutes immunity. Insurance Co. North America 675 756, 758 (CA5 1982); Portmann 674 1155, 1168 (CA7 Associates Services America, Inc. Robinson, 582 1978) (per curiam); Beneficial York, Dallas, 571 125 (CA2 1978); General Electric Credit Smith, 565 291 (CA4 1977) Goodman's Furniture 561 462 (CA3 1977); May Stores Williamson, 549 1147 (CA8 Standard Oil Division Starks, 528 201 1975) Kennedy 508 954, 957 (CA10 1974); Butz Engineering 204 Ct.Cl. 561, 566-567, 499 619, 621-622 (1974); Milner Bolger, 546 F.Supp. 375 (ED Cal.1982); Lutz 538 1129, 1132 (EDNY Lincoln Trust Marotta, 442 49 (NDNY Virginia Tompkins, 434 787 Va.1977); Bank/National Eaves, 416 518 Va.1976); Iowa-Des Moines 414 1393 (SD Iowa 1976); Colonial Broussard, 403 686 La.1975). Nolan Woodruff, 68 F.R.D. 660 (DC 1975); Drs. Macht, Podore Associates, Girton, 392 66 Ohio Lawhorn Lawhorn, 351 1399 W.Va.1972); Window Cleaners Local 139 Fund Griffin, 345 1343 Mich.1972). H.R.Rep. 91-1104, pp. 5, 11-12 (1970), U.S.Code Cong. Admin.News 3649; 116 Cong.Rec. 19846 (1970) (remarks Rep. Corbett); id., 20226 Udall). Perhaps clearest practical expression Congress' decision new postal rate structure designed self-supporting. 3621; 16-17 (1970). Assn. Greeting Card Publishers 810, 813-814, 103 2717, 2721, 2722, 77 195 burden responding interfere perform functions. 249, 492. upon face similar barred noted honoring Cal.Tax. Rev.Code 18819 84, 486. Land Priddy, 229, 705, 1408 (1935) (in interpret manner, extend permit prejudgment attachment). wrote: "Therefore, government become conduit agents do work. For hundred used agencies doing work government. them 'as executing powers as, instance, railroad corporation promoting commerce among States.' confer conventional to-sue-and-be-sued omitted. context modern thought corporate facilities, formula alone engender unto indispensable early common law, 'warrantizio' 'to his heirs,' substitutes desired consequences wrought. may, course, endow government's always is: done so? problem. Has Regional enveloped creation? textual problem; expressed words. consciousness intention. Congressional divined, interpretation which, ascertainment immanent single flow rights responsibilities Regional, series statutes utilizing purposes drawing significance dominant contemporaneous suit." 388-389, 517 (citations omitted) (quoting Luxton River 153 525, 529, 891, 38 808 (1894)). requires receive opportunity hearing deficiency, both Equalization appeal. 18581-18602 raised sufficiency received. Commissioner Shapiro, 424 614, 629-632, 12, 96 1062, 1071-1073, 47 278 (1976). article resort equitable equity"); Kanarek Davidson, Cal.App.3d 341, 346, 148 Cal.Rptr. 86, 89 (1978). entertain contesting exhausted remedy. Aronoff Board, Cal.2d 177, 180-181, 383 P.2d 409, 411, 32 1, 3-4 (1963). prohibits injunction restraining Cal. Const., Art. XIII, 32; 19081 1983); 400-401, 10, 415, 2503, 2511. 18 G.M. Leasing 429 338, 352, 18, 97 628, 50 530 (1977); Palmer McMahon, 133 660, 669 (1890); Hager Reclamation 108, 111 701, 710, 663, 668, 569 (1884). Randall 453 381 1971); Greene 27 38, 44, 483, 486-487 (1972). 19 significant distinction remove latter proceeding, unlike former, 409(a). initial matter far stakeholder real interest employee. Jones Store Hammons, 494 (WD Mo.1977); Armstrong Cover Whitfield, 418 972 (ND Ga.1976). Murray, 621 1980). Even assuming removable, facts demonstrate fallacy argument. feels meritorious though hard how could, supra, 522-523, remains free refuse file it, here, else initiate own lawsuit 20 410-411, 2509; Fair Assessment Real Estate Assn., McNary, 454 100, 70 271 (1981); Rosewell LaSalle Bank, 450 503, 522, 101 1221, 1233, 67 464 Great Lakes Huffman, 319 293, 298, 1070, 1073, 1407 21 Agricultural Corporation, corporation, protected authorizing legislation contained clause; parent wide variety situated entities immunity, concluded regional corporation. 392-394, 519-520. 235-236, 708. 22 employ "piggyback" 26 6361-6365, passed address procedures Internal procedure. enacted 5520 1974, city county retained is, however, relevant 5517; Treasury explicit able make; addresses 8, supra. position 5520, piggyback collect order. light disposition, reach contention Buck 105-110,

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