Legal Document

437 U.S. 601 98 Supreme Court Reporter 3107 57 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 464 State of CALIFORNIA, Plaintiff,v.State TEXAS Number 76 the June 22, 1978 On Motion for Leave to File Bill Complaint. 1978. PER CURIAM. 1 The motion leave file a bill complaint is denied. 2 Mr. Justice BRENNAN, concurring. 3 & N Dec. Immigration and Nationality Decisions agree with STEWART POWELL that "in light Edelman versus Jordan, 415 651, 94 1347, 39 662 (1974), this Court's decision in Worcester County Trust company Riley, 302 292, 58 185, 82 L.Ed. 268 (1937), no longer can be regarded as bar against use federal interpleader by estates threatened double death taxation because possible inconsistent adjudications domicile." Post, at 615. 4 am not so sure they Texas Florida, 306 398, 59 563, 83 817 (1939), was wrongly decided. But, whatever case, would still deny California's time. If we have jurisdiction all, certainly does attach until it shown two may possibly able obtain conflicting domicile. That showing has been made time since well Hughes estate judgment under Federal Interpleader Statute, 28 Code KF62 § 1335, from district court, which binding on both California Texas. In event, precondition our original lacking. Accordingly, motion, least such statutory action cannot or will brought. 5 STEWART, whom STEVENS join, 6 seeks invoke exclusive settle dispute over question power collect taxes late Howard Robard Hughes. today, without explanation any kind, evidently concludes state claim within jurisdiction. This conclusion seems me squarely contrary longstanding precedent Court, case 817. joined order denying only think Florida decided should overruled. 7 * According complaint, imposes an inheritance tax real tangible personal property located its borders, upon intangible personalty wherever situated, person domiciled his death, follows precisely same policy.1 alleges taxing authorities each are claiming good faith decedent their instituted proceedings all assets jurisdiction, intangibles (consisting shares stock single holding company) constitute great bulk estate's assets.2 8 common law recognizes, theoretical matter, one domicile purposes taxes. Nevertheless, alleges, neither nor become party other's courts, bound adverse determination th forum. Finally, crux dispute, if judgments respective courts impose basis valuation set forth return, total liability exceed net value. Thus, were claimed them, ultimately determine domiciliary then left entirely valid uncollectible extent about $21 million. 9 sum, "because there other means claims resolved, forum decedent's manner bind interested parties assure domicile, Texas, tax." invokes authority supra. II 10 accepted Texas' nature interpleader, brought true [a] rival four states . .." U.S., 401, 563. three defendant decedent, Colonel Edward Green, son legendary Hetty Green,3 entitled located, State. None had reduced judgment, but conceded insufficient satisfy amount claimed: is, successful own obtained full claimed, cover claims.4 11 Although none raised considered sua sponte. It held suit between States, Article III, 2, Constitution conferred decide long "the issue framed pleadings constitutes justiciable 'case' 'controversy' meaning Constitutional provision, facts alleged found afford adequate relief according doctrines equity systems jurisprudence 405, 12 analogizing interpleader. procedure developed avert "risk loss ensuing demands separate suits claimants debt legal duty" requiring "l tigate ownership asserted claim." Id., 405-406, 563.5 Since provided could taxes, competing fact duty. 13 Thus viewing also controversy ripe decision. State's sufficiently substantial support finding "fair probability" meet claims. therefore present [to] lawfully 410-411, perceived jurisdictional frailty completed tax, plaintiff ordinarily required await actual institution independent suits: "[I]t enough he shows consequent risk substantial." 406, 563.6 14 now before us indistinguishable material respects those based Florida.7 disputes more 1251(a)(1), responsibility exercise when properly invoked. See Cohens Virginia, Wheat. 264, 404, 257; Massachusetts Missouri, 308 1, 19-20, 60 39, 84 3. correctly decided, therefore, duty grant complaint. 15 believe, however, Its among depended analogy Yet resting focused erroneously plight estate, indeed confronted "substantial likelihood" multiple claims, overlooked States—stemming solely possibility might claims—was constitutional sense. III 16 readiness accept understandable context governing intangibles. 17 Before 1931 taken settled that, purely law, "must many cases impossible controlling question," unless chance voluntary appearance Baker Baker, Eccles Co., 242 394, 37 152, 61 386. But constitutionally "be subjected transfer only," being First National Bank Maine, 284 312, 328-330, 52 174, 313, seemed implicit must some protecting right obvious next what federal-court procedures resolved.8 18 somewhat unexpected answer came 268, ordinary forcing unwilling litigate intangibles, court. attempted sue officials different recently enacted single, death. Despite broad language "[n]either Fourteenth Amendment credit clause requires uniformity decisions place domicil, where exertion dependent domicil boundaries." 299, 185. After thus making clear imposition presented question, opinion went foreclose recourse diversity-of-citizenship see Farm Fire Casualty Tashire, 386 523, 530-531, 87 1199, 270, required.9 acting unconstitutionally attempting state-court judgments, substance themselves, barred Eleventh Amendment. Ex parte Young, 209 123, 441, 714.10 19 When identical type placed years later understandably persuaded view presenting resolvable alone tax.11 merely coincidental premise States—the value tax" find itself unable do so.12 20 As clear, insofar rights concerned, "lawfully entitled" tax: "[T]wo assess judicial ." 410, And few months elaborated doctrine denied There equally depleted: "Missouri, recover respondent trustees, taking collection, injuring Massachusetts. By allegations, Missouri amply sufficient recovery either impair have." 15, S.C 39. 21 even after adjudication So pay claim, courts. And, lawful right" Only very rare situation together exceeded assets, invoked undertake estate. IV 22 reality allegations us, contain seeds distinct lawsuits. One proper division finite sum money. imposed States. yet term. Atlantic 23 What forum, response nn. 10, generally affords remedy faced threat taxation, logical reason why available wipe out entirely. unfair subject domicile-based unfairness just great, greater, 24 recognized, involved exists, require litigation result adjudications. live obligation fact, 25 concern adjudge succeed except exhaust judgment. prevent Court. For seek aid protect interests, interests others. supra, B 26 really them Indeed dilemma arises permits i pose tax. 268.13 conflict staking grounds, creditors completely debts incurred while alive. 27 latter irrelevant, compelling dispositive Florida. exercises look State, rather creates rules "The relative contending respect streams flowing through depend considerations governed applied solution similar questions private right." Connecticut Massachusetts, 282 660, 670, 51 286, 75 602. similarly necessarily govern law. deciding could, course, determine, died, permit Cf. New Jersey, 379 674, 85 626, 596. assuming contacts law—a —the equal validity disposition strength almost just. Indeed, resolution sovereign seem appropriate neutral principle than attempt "correct" 29 event resolved A prior respect, affording deemed appropriate. California, unlike claimant action, met res judicata potential pre-empted incipient stage. Treinies Sunshine Mining 66, 74-78, 44, L.E 85. 30 exists injuries inflicted sister York 256 296, 309, 41 492, 65 937; yet, suffered injury hand never come pass. died there, conditional agreement representative contest assertion filing. Moreover, whether various how finally evaluated deductions allow. While poses filed court,14 "clear convincing evidence" "serious magnitude" another. 492; Illinois, 200 496, 521, 50 572. 31 here—essentially another exhausted debtor's funds—would justify actually occurred.15 be, surely exist established enforceable 32 these reasons join 33 POWELL, 34 excellent write simply emphasize 35 Professor Zechariah Chafee, father pointed out: "It system taxation. Somewhere remedies frictions creates." Act 1936, 49 Yale L.J. 377, 388 (1940). much Chafee's regret, L.J., 388, precluded resort particularly "friction" cases. 36 noted ante, 608-609, n. effectively undercut subsequent developments. bars "by seeking paid public funds treasury," 663, actions "fiscal consequences treasuries [that are] necessary compliance decrees terms [are] prospective nature," id., 667-668, this, system. An States' levying unquestionably fall into category. appear proscribed situation. Tangible realty situs. Union Refrigerator Transit Kentucky, 199 194, 36, 150; City Farmers Schnader, 293 112, 55 29, 79 228. fully, infra, 607-610, may, theoretically, taxed owner's Nat. 313. contesting asserting Nevada—the Dictionary American Biography 545 (1931). assigned Special Master fully litigated merits $36,137,335, $37,727,213—roughly $17.5 million $4.6 $5 $6 York. 409 fell short $1.6 million, shortfall sustained, go unsatisfied sustained. stakeholder bringing asserts interest fund. contrast, allows fund including own. confirmed Master's Green concede argues distinguishes concessions did confer Rather, mere "substantial" create here are, speculative case. 4, 383-393 (1940), collected, 383 17; Nash, Again Multiple Taxation?, Geo.L.J. 288, 297 (1938). doubt ideally suited whose work Statute largely based, believed "badly needed." supra 8, 379. observed, "highly governments tell taxpayer, 'You tax,' make him twice." 384. He paradox theoretically created government: "In nation unified government, decedents remediless impossible. Either agency taxes; else court review local agencies. b 388. believe available. infra. substantially 662, expressed understanding quite manifested 268. bring declaratory injunctive Tax Injunction Act, 1341, preclude suit, "plain, speedy efficient remedy" e. g., recognizing earlier At commentator viewed pending Court: "Texas wedge open door slammed Riley. hard persist refusal difficulty, seizes slightest hope solution." 314. oral argument indicated states." Tweed Sargent, Death Taxes Certain—But Domicile, 53 Harv.L.Rev. 68, (1939). first dismissed prejudice. York, 300 642, 614, 81 857. amended plainly alleging "on information belief" took Western Telegraph Pennsylvania, 368 71, 199, 139, held, holder due process escheat Because enforce laws remaining claimed. different, impediment imposing source debtor. closest analogue petition declaration involuntary bankruptcy—a statute, "accepted jurisprudence, guides Court." W. Collier Bankruptcy, &Par; 0.01-0.03 (1974). certain "exercise [the] given," 257, compels empowers status creditor kind rather, best negotiation arbitration. 428, 563 (Frankfurter, J., dissenting). 12, 77. adopted arbitration compromise here. Uniform Interstate Arbitration U.L.A. 255 (1972); Commerce Clearing House Inh. Est. Gift Rep. ¶ 12,035 (1975).

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