Document: 341 U.S. 428 71 S.Ct. 822 95 L.Ed. 1078 STANDARD OIL CO.v.STATE OF NEW JERSEY, by PARSONS, Attorney General of State New Jersey. No. 384. Argued March 5, 1951. Decided May 28, Mr. Josiah Stryker, Newark, N.J., for appellant. Emerson Richards, Atlantic City, appellee. Justice REED delivered the opinion Court. 1 The Standard Oil Company a Jersey corporation, appeals from judgment Supreme Court insofar as it declares escheated to unpaid dividends declared upon stock Oil, and twelve shares common Company. Escheat Act reads in part: 2 'If any person, who, at time his death, has been or shall have been, owner personal property within this State, died, die, intestate, without heirs known kindred, capable inheriting same, leaving surviving spouse, such property, whatsoever nature same may be, escheat State.' 3 'Whenever owner, beneficial person entitled be remain unknown period fourteen successive years, whenever whereabouts wherever situate unclaimed then, event, N.J.Rev.Stat. 2:53 16, 2:53—17, N.J.S.A. 4 In accordance with procedure prescribed Act, petition name decree escheating certain property,1 including issue here, was filed Chancery Division Superior alleged that appellant had its custody possession which subject under each alternative reasons listed above provisions: owners died intestate anyone taking property; years; years. 5 answered and, after notice hearing, entered final ordering property. N.J.Super. 442, 64 A.2d 386, 460, 68 499. This modified affirmed N.J. 281, 74 565. 6 appealing decision Jersey, claims thereunder deprived due process law violation Fourteenth Amendment. unconstitutional deprivation is arise fact does not protect later liability stockholders whose are escheated, because: (1) both claimants statute actually published were so inadequate afforded no reasonable opportunity learn proceeding effect on their claims, appear rights; (2) obligation contracts persons impaired Art. I, § 10, cl. Constitution United States; (3) courts jurisdiction enter since neither nor situs purpose escheat, either lawfully seized proceedings.2 7 Notice.—Appellant contends deprives various against adequate notice, therefore sue recover these deprive law.3 8 statute, 2:53—21, N.J.S.A., provides: 9 'A containing summary order designating place approved court manner directed also once week three weeks newspaper general circulation designated court; * *.' 10 authoritatively construed require 'that identify sought last owner.' page 307, 577.4 case corresponded construction. It described state court's understanding requirements clearly indicated one escheat. 11 differs Wuchter v. Pizutti, 276 13, 48 259, 72 446, relied appellant, here attempted validate defective statutory provision recourse sufficiency which, although required given. Here itself, interpreted court, requires what we think notice. 12 Security Savings Bank California, 263 282, 44 108, 301, involving bank deposits presumed abandoned, where nothing contrary officials, because unused twenty similarly contended denied depositors would bound 286, 110. said '(T)he essentials over there seizure res commencement suit, heard.' 287, procedural made affected parties publication Sacramento County, only, summons requirement depositors' addresses. Delivery copy commanded. held, 110, service effected deposit effective similar litigation possible Cf. Anderson National Luckett, 321 233, 243, 599, 604, 88 692. 13 Mullane Central Hanover Trust Co., 339 306, 70 652, 94 865, settle trusts numerous beneficiaries names interests trustee, commented notice: 14 'This hesitated approve resort customary substitute another class cases reasonably practicable give more warning.' 317, 658. We held that: 15 'Accordingly overrule appellant's constitutional objections they urged behalf addresses trustee.' 318, 659. 16 sound stated foregoing deeming notices given bind interested respective proceedings, lead us conclusion adequate. If responsibility looking abandoned sovereign power, publications affect owner's rights. 17 Impairment Contract.—Appellant attacks validity ground impairs contract rights certificates 1, Constitution: 'No pass Law impairing Obligation Contracts enacted authorize take 'personal property' (New Jersey) unknown' 'whereabouts' remains 'unclaimed' 2:53—15 17, need consider whether possesses inherent power legislation personalty successor prerogative royal sovereignty.5 18 As broad principle jurisprudence rather than result evolution legal rules, clear state, limitations, use legislative dispose reach, belonging persons.6 Such thus escapes would-be possessors used good chance enrichment particular individuals organizations. Normally obligor holder obligee would, contractual arrangement between themselves disposition failure make claim. function implied arises determine Consequently, impairment Jersey's subsequent creation obligations examination, but only exercise regulatory property.7 19 Situs Property.—Appellant argues denies escheat.8 Appellant debts demands cannot seized. Since corporation liable stockholders, payment process. 20 tangible except transfer books, kept registered office, located office an individual, Flemington, points out case, 285, 109, 241, 603, 692, states banks doinb business therein. A like situation exist issued other states. Further did deal statutes, rather, Moore conservation statutes. 21 solely California Kentucky gave those deposits. Had bailment two individual citizens who subsequently removed controlled, though laws might have. controlling could served process, personally publication, chose action.9 22 amenable through agent office. 14:4—1, 14:4—2, Garford Trucking, Inc., 346, 851, A.L.R.2d 1407. seize involved, wit, 'debts estate'. And immediate significant. permitted existence unknown.10 taking-over foreshadowed See Malone 221 664, 31 662, 55 899, pages 283 290, 111, 23 No matter assets pay estate taken, effects just way shown Notice subdivision opinion, supra, 432, 825. That debt debtor provides basis absent debtor. 301. true fiction plays part jurisprudential concept control intangibles. There fiction, however, choses action, Whether some purposes rise diverse views Court.11 24 see reason doubt that, creditor debt. action spatial existence, them can 'only relationships source obligations.' Estin Estin, 334 541, 548, 1213, 1218, 92 1561.12 intangible fictional judicially coerced created enables intangible.13 exists state's dealings rely asset represented certificate dividend found.14 come reach i.e., publication; service. compel dividends. Compare Great Northern R. Co. Sutherland, 273 182, 193, 47 315, 319, 596.15 gives act. course, must accord boundaries set Constitution. 25 Unclaimed disposal include doing incorporated Federal Government. U.S.C. et seq., U.S.C.A. seq. Nat. 'is mass devolution (the same) control', 248, 607, 'tangible property.' Moneys owed foreign insurance companies, life policies lives residents remaining period, disposition. Connecticut Mut. Life Ins. Moore, 333 682, 863. 26 undelivered thereon domiciliary when lengths time, circumstances, permit declaration abandonment.16 rule applicable here. 27 Full Faith Credit.—Finally, objection takes owners. argument protection 2:53—23.1, N.J.S.A.17 beyond actions stockholders.18 judgment, modified, calls reissue 28 support valid well applies property.19 having taken company state. Credit Clause bars double Baltimore & Ohio Hostetter, 240 620, 624, 36 475, 476, 60 829, cited, particularly Harris Balk, 198 215, 226, 625, 628, 49 1023. 29 Dissents suggest enact custodial statutes until settles controversy action. details method bringing countries before selection appropriate sovereignty receive elaborated upon. claim determination right claimant await presentation 30 affirmed. Affirmed. 32 FRANKFURTER, whom JACKSON joins, dissenting. 33 I do understand affirms condition granting corporate charter Indeed, specifically possibility logically holding. it, rest territorial sense assumed control. foundation usually conveyed situs. dissent. 863, sustained York allowing proceeds insured's residence delivery policy. On basis, domiciled certainly better happens 34 perchance infer deposited Guaranty escheatable York, she anticipated exhausted all potentialities dividends, added ought placed unseemly light suggesting several States depend on, terminated by, race diligence. Bankruptcy expresses condemnation conduct accidental solution competing interests. thing open interest justifying But if wishes assert very exclusively control, should litigation. adjudgment conflicting among avoid crude remedies self-help settlement interstate controversies. Texas Florida, 306 398, 59 563, 830, 83 817. 35 DOUGLAS, BLACK concurs, incorporation obligor; (see 863); proved be; domicile; main business; trust (or domicile) beneficiary. still equal greater dignity these. heard one—the incorporation. 37 states, incorporation, constitutionally undertook hold intangibles pending done that. undertakes her exclusive (after short limitations run) vast amount wealth. Hence, defines term 'moneys, negotiable instruments, interest, estate, stocks, bonds, deposits, machinery, farm crops, live stock, fixtures, every kind accretions thereon'. 2:53—15, addition included wages former employees, money withheld employees purchase Liberty Bonds, moneys representing amounts unpresented commercial checks coupons debenture issue. apply 'extinguished, satisfaction bar limitations.' 293, 565, 570. ruling. limitation remedy. 292, 570 Chase Securities Corp. Donaldson, 325 304, 311, 65 1137, 1140, 89 1628, considering Campbell Holt, 115 209, 483. minor Division's proceedings escheated. 310, complains aggregate par value $300, Of construction binding matters federal involved. Hebert Louisiana, 272 312, 103, 104, 270; Burnison, 87, 89, 503, 504, 675. makes full release guarantee claims. new address did, fact, contain addresses, character weeks, requirement. King possession, chattels clear. VII Holdsworth, History English (2d ed.) 495. E.g., treasure trove, Attorney-General Trustees British Museum, (1903) Ch. 598. doctrine bona vacantia came X 350, corporations, 515, seq.; Ames, Disseisin Chattels, Select Essays Anglo-American Legal 558. Thus possessed dissolved bankruptcy corporation's 1898 theory 'extinct representative.' re Higginson Dean, (1899) Q.B. 325, 330. Grant Corporations (1854 303 304. Wright, J., said, 329: 'The Courts will allow obtained title mere trustee up unconscientiously occupancy, otherwise.' Crown took extinct creditor. Enever, Bona Vacantia England (1927) 55. particularly, Melrose Ave., 234 N.Y. 48, 53, 136 N.E. 235, A.L.R. 1233. Cunnack Edwards, (1896) 679, dealt society treated unit. members associated provide annuities widows. After death associates widows, 1250 surplus remained. charity obligees received full, cy-pres resulting applied, Lord Halsbury put it: adopt, namely, funds vacantia, belong character.' Cunnius Reading School District, 458, 469, 721, 724, 1125. Mormon Church States, 47, 792, 804, 481. Scott, Trusts (1939) 411.4. 301; 545—548, 685, 686, 863; Provident Inst. Town Boston Malone, 660, 663, 665—666, 661, 899. Each classified list estates includes holders chiefly outside methods different varied. For example, paid accounts maintained own agent. practices significant determining escheats, further discussed. creditor's ability garnishee debtor, garnisheed be. 1023; Louisville Nashville Deer, 200 176, 207, 50 426; 829. Carpenter, Harv.L.Rev. 905, Beale, 107. Whatever Professor Beale's view garnishment, he agrees herein. seem anywhere; merely forced relation real anywhere. Like relations may, controlled law, instruments law; making relation. it. Any assignment words legally assigned discharged especially creditor, parties.' 115—116. Christianson 239 356, 368, 114, 119, 327; Hamilton Brown, 161 256, 268, 585, 589, 40 691. Blackstone Miller, 188 189, 277, 439, overruled Farmers Loan Minnesota, 280 204, 98, 99, 371. latter led First Maine, 284 52 174, 76 313, turn Tax Comm'n Aldrich, 316 181, 62 1008, 1011, 86 1358. Treichler Wisconsin, 338 251, 3, 37. Curry McCanless, 307 357, 365—366, 900, 1339: 'Such persons, natural corporate, recognizes attaching sanctions enforceable courts. government exerted physical thing. They origin rights.' ruling Direction der Disconto-Gesellschaft Steel D.C., 300 F. 741, 746, 267 22, 45 208, 69 When taxation ruled 371, tax nonresidents residents, Washington deposit, nonresident decedent heirs, Washington. domicile our statute.' Lyons' Estate, 175 Wash. 115, 123, P.2d 615, 618. Rapoport's 317 Mich. 291, N.W.2d 777. Michigan passed Conflict Laws 309.1: picture movables being officers reality, (is) An especially, always represent liability. adopted Uniform Stock Transfer provisions replacement lost is, think, bearing problem 14:8—27 14:8—43, While sections otherwise security, apparently inapplicable internal management reserved Elgart Mintz, 123 N.J.Eq. 404, 197 A. 747, 753, attachment case. system follow simplify transactions touched example complications attachments Mills Jacobs, Pa. 231, 152, 122 333. owners, treat corporations differently shares. 515. 2:53—23.1: 'Operation 'Any pursuant act supplement, automatically operate absolute unconditional discharge claim, demand, whatever Treasurer respect pleaded brought Treasurer.' lay aside consideration transferred prior '* risk serious enough justify refusal adjust differences presented.' 743; 29, Pennoyer Neff, 714, 565; 691; Pennington Fourth Bank, 243 269, 270, 61 713. n. 9, supra.

Category: 7