Legal Document

369 U.S. 663 82 Supreme Court Reporter 1089 8 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 180 Judge W. FREE, Petitioner,v.James Federal KF105 F3 BLAND. Number 205. Argued March 21, 1962. Decided May Graham Claytor, Jr., Washington, D.C., for petitioner. Olin Pacific KF135 P2 McWhirter, Greenville, Tex., respondent. Mr. Chief Justice WARREN delivered the opinion of Court. 1 We are called upon to determine whether Treasury Regulations creating a right survivorship in Savings Bonds pre-empt any inconsistent Texas community property law by virtue Supremacy Clause, Article VI, Clause 2, Constitution. 2 The petitioner is widower Mrs. Mary Ida Free, and respondent her son previous marriage. Free were domiciled Texas. That State follows system; except certain instances not here material, all acquired either spouse during marriage belongs husband wife.1 Property purchased with retains character. See Love versus Robertson, 7 Tex. 6. Although each owns an undivided one-half interest property, sole authorized manager.2 During years 1941 1945, using several Bonds, series 'E' 'F'. bonds issued 'Mr. or Mrs.' Free. Under promulgated under 31 Code KF62 § 757c(a), Annotated KF65 U5 757c(a) which govern that form, when co-owner dies, 'the survivor will be recognized as absolute owner.' 315.61. After passed away 1958, this controversy arose between husband, who claimed exclusive ownership operation Regulations, son, who, principal beneficiary his mother's will, state laws. Respondent demanded reimbursement loss Free's half was converted into petitioner's separate federal regulations. 3 In order resolve controversy, filed suit District Upshur County, Texas, against individually executor estate. Bland counterclaim. On motion summary judgment, trial court awarded full title regulations but laws, making security payment. appealed Civil Appeals. affirmed court's award reversed respondent,3 relying Smith Ricks, 159 280, 318 South Western Reporter, 2nd 439, unconditional effect given provisions governing savings bonds. 4 While respondent's writ error pending overruled Ricks case Hilley Hilley, 161 569, 342 565. holding married couples would permitted agree provision regard dismissed argument compel recognition with: 5 'It clear do override our local laws matters purely private where interests involved. Bank America National Trust & Association Parnell, 352 29, 77 119, 93.' at 577, S.W.2d, 570. 6 Subsequently, Bland's granted, acting authority case, Appeals reinstated judgment per curiam opinion. 162 72, 344 435. granted certiorari. 368 811, 50, 21. Texas' interpretation accord controlling doctrine. relative importance its own material there conflict valid law, Framers Constitution provided must prevail. 2. This principle made Marshall he stated however clearly within State's acknowledged power, interferes contrary yield. Gibbons Ogden, 9 Wheat. 1, 210—211, L.Ed. 23. Franklin New York, 347 373, 74 550, 98 767; Wissner Wissner, 338 655, 70 398, 94 424; Sola Electric company Jefferson Co., 317 173, 63 172, 87 165. Thus inquiry directed toward if so, law. I, Section 8, delegates Government power '(t)o borrow Money on credit States.' Pursuant grant Congress Secretary Treasury, approval President, issue such form conditions may from time prescribe, subject limitations material. 757c(a).4 Cf. Sacks, 257 37, 42 38, 66 118. Exercising authority, provided, inter alia, bond 'or' survives other 'will owner' bond, 315.61,5 '(n)o judicial determination * defeat impair rights conferred these regulations,' 315.20.6 has consistently maintained purpose establish regardless law,7 majority have considered problem right.8 respondent, however, contends simply provide convenient method payment.9 depends primarily distinction stating surviving 'be as' owner 'be' owner. insubstantial. confer co-owner. Thus, law10 prevail it conflicts 424. success management national debt significant measure sales make attractive savers investors.11 One inducements selected provision, avoiding complicated probate proceedings. Notwithstanding required him account value decedent's Viewed realistically, rendered meaningless. Making payment confirms accuracy view. If can frustrate parties' attempt use bonds' through simple expedient requiring reimburse estate deceased matter interfered directly legitimate exercise money. 10 93, relied below, does support result reached. held that, absence application liability converter Home Owners' Loan Corporation permissible, because litigation two parties did intrude duties States, only possible States—the floating securities—being too speculative justify rule. doctrine apply fails give term condition issued, noted. 'Federal course governs nature obligations created themselves.' 34, 122. 11 hold, therefore, prohibits couple taking advantage merely purchase price paid out fall Clause. 12 Our supported 398. There intent allow serviceman select government life insurance policy even likely intended deprive wife share proceeds, guaranteed But go far. affording purchasers opportunity choose neither insulate claims regarding nor immunize execution satisfaction judgment.12 Solicitor General, appearing amicus curiae, acknowledges exception implicit regulations, including so 'sanctuary wrongdoer's gains.'13 With this, we agree. shield fraud relief available circumstances manifest breach trust tantamount thereto part while capacity manager general property. However, applicable law14 determined another day, presently here. record before us, no could properly been decided below judgment. direct allegation Other allegations some might bearing controverted therefore resolved merits. Accordingly, remanded proceedings 13 Reversed remanded. 14 FRANKFURTER took decision case. 15 WHITE consideration Vernon's Tex.Civ.Stat., 4619. Tex.Const., XVI, 15, Ann.St; Arts. 4613 4627. gift, devise descent 4613—4614. Also, partitioned manner 4624a, becomes generally Huie, Commentary Community Law Tex.Civ.Stat. 1. supra, note 39. managerial over 'special' comprised income Bearden Knight, 149 108, 228 837. Blevins, Recent Statutory Changes Wife's Managerial Powers, 38 Tex.L.Rev. 55. 337 805 (Tex.Civ.App.). 'The issue, time, Postal Service otherwise, certificates, proceeds shall meet public expenditures retire outstanding discount basis. various issues certificates forms, offered amounts, limitation imposed section 757b title, terms consistent subsections (b)—(d) section, restrictions their transfer, prescribe.' 'If coowner dies without having presented surrendered reissue, Thereafter, reissue though registered name alone *.' 'No attempted voluntary transfer vivos beneficiary, subpart restriction. Otherwise, claim conflicting of, in, coowners recognized, established proceedings, presentation surrender specifically subpart.' See, e.g., Statement Department Rights Surviving Coowners Beneficiaries dated July 5, fifth revision, October 1958; Letter Acting Assistant General Counsel Attorney Missouri, June 9, 1941; Circular 530, 1935. Lee Anderson, Ariz. 208, 218 732; Stephens First Nevada, 65 Nev. 352, 196 756. Decker Fowler, 199 Wash. 549, 92 254, 131 American 961. participated curiae rehearing, urging had erroneously construed Leslie Miller, Incorporated Arkansas, 187, 257, 231; Standard Oil California Johnson, 316 481, 62 1168, 86 1611; 118; Birdsall, 233 223, 34 512, 58 930. 757c(a). 4, supra. §§ 315.20—315.23. 6, Brief Page also id., Pages 26—28. Holmberg Armbrecht, 327 392, 582, 90 743; Clearfield 363, 573, 838.

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