Document: 352 U.S. 202 77 S.Ct. 275 1 L.Ed.2d 254 UNITED STATES of America, Petitioner,v.Paul E. PLESHA et al. No. 39. Argued Nov. 8, 1956. Decided Jan. 14, 1957. Mr. Lester S. Jayson, Washington, D.C., for petitioner. Lawrence A. Schei, Sacramento, Cal., respondent. Justice BLACK delivered the opinion Court. Article IV Soldiers' and Sailors' Civil Relief Act 1940 provided a plan under which men inducted into armed forces would continue to receive protection previously purchased commercial life insurance while in service without paying premiums.1 Insurance companies were required keep policies servicemen who elected come effect until one year after their military ended even though these made no further payments. The Government assured that premiums eventually be paid by giving its promissory certificates companies. respondents, Plesha, Mabbutt, Kern, entered Army 1941, had insurance. They invoked benefits filing proper applications with Veterans' Administration. payment but kept government certificates. After leaving Army, they notified Administration unless back interest lapse. Respondents allowed lapse insuring first deducting cash surrender value policies. In this case, contends it has legal right reimbursed payments.2 District Court agreed contention, 123 F.Supp. 593. Appeals reversed, holding Servicemen statutory or contractual obligation repay premiums. 227 F.2d 624.3 We affirm judgment below because language Act, legislative history administrative interpretation demonstrate Congress intended ex-soldiers not have reimburse Government. 2 1. Act.—As concedes, contained express provision reimbursement on lapsed policy.4 But significantly did contain specific provisions reduce any losses might incur administering certain other rights. Under § 408 United States lien upon policy from time came Act. When soldier died company was authorized 409 deduct unpaid proceeds payable policy. If insured desired maintain his policy, 410 him pay company. he chose premiums, And if lapsed, 411 should given credit policy's as an offset against Government's promise There nothing indicated ex-soldier balance paid. 3 2. history.—The claim is refuted history. substantially reenacted 19185 little independent agree Administrator Affairs scant 'is little, any, help' interpreting Act.6 must therefore examine 1918 bill.7 During Senate Committee hearings bill, Senator Reed, principal critic provisions, interpreted them permitting let restore theGovernment.8 He objected bearing part cost suggested bill amended authorize soldier's monthly pay. Professor John H. Wigmore, major representing dominant drafting presenting Congress, strongly Reed's suggestions. Wigmore pointed out benefit keeping many new being conferred at critical war period. directly asked whether could pay, called attention fact recover value. admitted, however, all cases entire amount predicted loss very slight.9 accepted Wigmore's position reported form urged. 4 House Judiciary comprehensive report bill.10 It referred sections providing method 'carry' servicemen's private recognized carrying money, expressed hope burden large because: 5 'In place only guarantees dies will get guaranty upon. comes continues lets subrogated rights.'11 6 Thus, apparently thought look mitigate where 7 1942, require ex-servicemen policies.12 1942 Amendment clarify reaffirm meaning However appears requested '* * eliminate possibility requiring does intend carry except during period active service. *'13 hearing before Military representative testified, '(t)he liable $5,000 acting really guarantor. However, there default (by ex-serviceman), liability whole amount, excess (surrender) present construction existing law.'14 indicates anything, changing law Act.15 8 3. interpretation.—The administration Acts support reimbursement. relies few soldiers later it. collections so sporadic insignificant instead supporting contradict it.16 401(2) issue notices explaining None promulgated prior 1943 duty Government.17 public statements officials gave squarely contrary construction.18 9 Section 401(1) seeking file forms prepared accordance regulations respondents here filed such application included within terms following agreement: 10 consideration hereof, I hereby consent shall protected guaranteed above numbered event maturity claim, expiration Act.' 11 This contract, Administration, suggestion expected permitted Had construed imposing soldiers, we think mentioned contract sign. 12 passed when civilian face impending war. Great efforts ease dependents. Among these, generously family allotments, disability payments, low-cost Similarly adopted assist bought entering 13 Affirmed. 14 FRANKFURTER, BURTON HARLAN dissent reasons Circuit Judge HUXMAN v. Hendler, Cir., 225 106. 54 Stat. 1183, 50 U.S.C.App. (1940 ed.) 540, U.S.C.A.Appendix, 540. Plesha brought suit dividend declared National Service Life attempted intervened litigate same basic issue. granted certiorari, 350 1013, 76 658, conflict implied general principles common particularly doctrine guarantor pays debt another entitled regard common-law guarantor, are persuaded record indebted wartime either Where exists basis applying rules guaranty. event, hesitant infer favor based congressional Cf. Gilman, 347 507, 74 695, 98 L.Ed. 898. 40 444. 'The change article (insurance) relates administration.' H.R.Rep. 3001, 76th Cong., 3d Sess. 4. Decisions Affairs, 742 (April 1947), Vol. 1, Supp. pp. 93, 98. discussion between Congressmen Voorhis Arends debates 86 Cong.Rec., Part 12, 13132—13133. Apparently gentlemen familiar surprising since neither sponsor measure. Moreover, substantial reenactment committee inform congressmen precise scope As nor lawyers, cannot assumed aware technical theory here. correct concluding history, includes Voorhis-Arends colloquy, claim. See Boone Lightner, 319 561, 565, 63 1223, 1226, 87 1587. 'If wants effect, take proposition then Government; want still option walk away leave it.' Hearings Subcommittee 2859 H.R. 6361, 65th 1st 2d 135. closing argument over colloquy took Major Reed: 'Senator Now, do you undesirable, Major, greatly preferred just risk? 'Maj. Wigmore: can speak myself respect; but, speaking my own judgment, seem me going than Nation ought wish go sailors. You desirable it, regardless attempt itself man's pay? point Government, war-risk offered give sailors rate of, think, $8 thousand, am told means expenses contributed already gone far, seems inconsistent that, principle, far.' Id., 137—138. 181, 8. insurer account approved article, amended, become due whose *.' (Emphasis added.) 56 775, 546. Letter President Senate, appended S.Rep. 716, 77th 6. 7029, 38. 15 Even stated formal decision 1947 that: 'Fairness compels admission act reflects probable belief, incorrect one, Seventy-seventh (passed Seventy-sixth Congress) been rise owing latter's exceeded value.' 103. 16 According figures, 7,745 Act; 476 total less $20,000 approximately $42 per showing prophecy smallness one. sought $484.42. Records submitted show obtained demands went through regular channels. 17 ever officially authorizing Administrator's Decision 513, March 1943. held agreement 'gratuitous assumption liability' retroactively changed Amendment. 513 (March 1943), 781. view Decision, 742, serviceman's determined see Lynch States, 292 571, 840, 78 1434. 18 Less two months passed, Director replying telegraphic inquiry 'No collecting insurer.' Shortly afterwards similar statement representative. meantime Assistant publication journal: 'There premium may exceed termination.' testifying text note supra.

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