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Supreme Court — Part 5
Page 17
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6 Lynch ws, United States.
with all the wrong and reproach that term implies, as it would be
if the repudiator had been a State or a municipality or a citizen.’’
The Sinking Fund Cases, 99 U.S. 700, 719.
Third. Contracts between individuals or corporations are im-
paired within the meaning of the Constitution whenever the right to
enforce them by legal process is taken away or materially lessened.*
A different rule prevails in respect to contracts of sovereigns.
Compare Principality of Monaco v. Mississippi, decided May 21,
1934, ‘‘The contracts between a Nation and an individual are
only binding on the conscience of the sovereign and have no pre-
usions to compulsive force. They confer no right of action
dependent of the sovereign will.’’"* The rule that the United
States may not be sued without its consent is all embracing.
In establishing the system of War Risk Insurance, Congress
vested in its administrative agency broad power in making de-
terminations of essential facts-—power similar to that exercised
in respect to pensions, compensation, allowances and other gratui-
tous privileges provided for veterans and their dependents. But
while the statutes granting gratuities contain no specific provision
for suits against the United States,’° Congress, as if to emphasize
the contractual obligation assumed by the United States when
issuing War Risk policies, conferred upon beneficiaries substan-
tially the same legal remedy which beneficiaries enjoy under
policies issued by private corporations, The original Act provided
in § 405:
**That in the event of disagreement as to a claim under the con-
ict of insurance between the bureau and any beneficiary or bene-
‘aries thereunder, an action on the claim may be brought against
we United States in the district eourt of the United States in and
for the district in which such beneficiaries or any one of them
resides, ’7!+
Although consent to sue was thus given when the policy
issued, Congress retained power to withdraw the consent at any
8See Worthen Co, v. Thomas, No. 856, decided May 28, 1934: and cases
cited by Mr. Justice Sutherland in Home Building & Loan Association v.
Blaisdell, 290 U. 8, 398, —.
*Hamilton, The Federalist, No. 81.
10See Sixth, infra, p. 11.
The provision for suit was later modified, See World War Veterans’ Act
1924, $19, a8 amended by Act of July 3, 1930, c. 849, 46 Stat. 991, 992, under
which these suits were brought.
Lynch vs. United States. 7
time. For consent to sue the United States is a privilege accorded ;
not the grant of a property right protected by the Fifth Amend-
ment. The consent may be withdrawn, although given after much
deliberation and for a pecuniary consideration. DeGroot v. United
States, 5 Wall. 419, 482. Compare Darrington v. State Bank, 18
How. 12, 17; Beers v. Arkansas, 20 How. 527-529; Gordon v. United
States, 7 Wall. 188, 195; Ratiroad Company v. Tennessee, 101 U. 8.
337; Railroad Commission v. Alabama, 101 U. 8. 832; In re Ayers,
123 U7. 8. 448, 505; Hans v. Louisiana, 134 U.S. 1, 17; Baltzer v.
North Carolina, 161 U. 8. 240; Baltzer & Taaks v. North Caro-
lina, 161 U. 8, 246.1? The sovereign’s immunity from suit exists
whatever the character of the proceeding or the source of the
right sought to be enforced. It applies alike to causes of action
arising under acts of Congress, DeGroot v. United States, 5 Wall.
419, 431; United States v. Babcock, 250 U. 8. 328, 331; and to
those arising from some viclation of rights conferred upon the
citizen by the Constitution, Schillinger v. United States, 155 U.S.
163, 166, 168. The character of the cause of action—the fact that
it is in contract as distinguished from tort—may be important in
determining (as under the Tucker Act) whether consent to sue
was given. Otherwise, it is of no significance. For immunity from
suit is an attribute of sovereignty which may not. be bartered away.
Mere withdrawal of consent to sue on policies for yearly renewable
term insurance would not imply repudiation. When the United
States creates rights in individuals against itself, it is under no
obligation to provide a remedy through the courts. United Siates
v. Babcock, 250 U. 8. 328, 331. It may limit the individual to ad-
ministrative remedies. T'utun v. United States, 270 U. 8. 568, 576.
And withdrawal of all remedy, administrative as well as legal,
would not necessarily imply repudiation. So long as the contract-
ual obligation is recognized, Congress may direct its fulfilment
without the interposition of either a court or an administrative
tribunal.
Fourth, The question requiring decision is, therefore, whether
in repealing ‘‘ali laws granting or pertaining to yearly renewable
term insuranece’’ Congress aimed at the risht or merely at the
remedy, It seems clear that it intended to take away the right;
1zCompare also Imhoff-Berg Silk Dyeing Co. v. United States, 43 F. (2d)
836, 841; Synthetics Patent Co. v. Sutherland, 22 PF. (2d) 491, 494; Kogler
tv. Miller, 288 Ped. 806.
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