U.S. Supreme Court MILWAUKEE COUNTY v. M.E. WHITE CO., 296 U.S. 268 (1935)

[Page 296 U.S. 268, 279]

they had been conclusively determined by the New York judgment, which established liability for the tax. [Footnote 4]

[Page 296 U.S. 268, 280]

2 per cent. for delinquency in payment, but the record does not disclose that the nominal penalty arose under a penal law or is of such a nature as to preclude suit to recover it outside the state of Wisconsin. See Huntington v. Attrill, , 667, et seq., 13 S.Ct. 224. The certificate and question are framed on the assumption that it is not. The judgment is stated to be for taxes.

The question is answered 'yes.'

Mr. Justice McREYNOLDS and Mr. Justice BUTLER think that the question should be answered 'no.' Footnotes

[Footnote *] Answer to certified questions conformed to in 81 F.(2d) 753.

Footnote 1 Horsy v. Daniel, 2 Lev. 161; Id., 1 Marsh. 284; Prince v. Nicholson, 5 Taunt. 665; Hall v. Obder, 11 East, 118; Lyman v. Brown, Fed. Cas. No. 8, 627, 2 Curt. 559, 561; Taylor v. Bryden, 8 Johns. (N.Y.) 173; Russell v. Smyth, 9 M. & W. 810; Andrews v. Montgomery, 19 Johns. (N.Y.) 162, 10 Am. Dec. 213; Boston India Rubber Factory v. Hoit, 14 Vt. 92; Carter v. Crews, 2 Port. (Ala.) 81; Belford v. Woodward, 158 Ill. 122, 41 N.E. 1097, 29 L.R. A. 593; Cole v. Driskell, 1 Blackf. (Ind.) 16; see 1 Chitty on Pleading, 115; 2 Freeman on Judgments, 1515.

Footnote 2 Henry v. Sargeant, 13 N.H. 321, 40 Am.Dec. 146; Gulledge Bros. Lumber Co. v. Wenatchee Land Co., 122 Minn. 266, 142 N.W. 305, 46 L.R.A.(N. S.) 697; State of Colorado v. Harbeck, 232 N.Y. 71, 133 N.E. 357; James & Co. v. Second Russian Insurance Co., 239 N.Y. 248, 257, 146 N.E. 369, 37 A. L.R. 720; In re Martin's Will, 255 N.Y. 359, 362, 174 N.E. 753; Beadall v. Moore, 199 App.Div. 531, 533, 191 N.Y.S. 826; cf. Municipal Council of Sydney v. Bull (1909) 1 K.B. 7; Queen of Holland v. Drukker (1928) Ch. 877; Attorney General of Canada v. Schulze & Co., 9 Sc.L.T.Rep. 4.

Footnote 3 Moore v. Mitchell, 30 F.(2d) 600, 601, 65 A.L.R. 1354 (C.C.A.2d), affirmed on another ground 281 U.S. 18, 50 S.Ct. 175; In re Anita Bliss' Estate, 121 Misc. 773, 202 N.Y.S. 185; In re Martin's Estate, 136 Misc. 51, 240 N.Y.S. 393; State of Maryland v. Turner, 75 Misc. 9, 132 N.Y.S. 173. Contra, Holshouser Co. v. Gold Hill Copper Co., 138 N.C. 248, 50 S.E. 650, 70 L.R.A. 183.

Footnote 4 The Restatement of Conflict of Laws of the American Law Institute, 1934, declares:

610. 'No action can be maintained on a right created by the law of a foreign state as a method of furthering its own governmental interests.'

This is stated by Comment (c) to refer to claims for taxes. It also declares:

443. 'A valid foreign judgment for the payment of money which has been obtained in favor of a state, a state agency, or a private person, on a cause of action created by the law of the foreign state as a method of furthering its own governmental interests will not be enforced.'

Comment (b) states that the enforcement of such a judgment is not required by the full-faith and credit clause. But illustration 4 states that a state judgment against a foreign corporation for a stipulated fee for the privilege of doing business within the state is entitled to full faith and credit.

These conclusions should be compared with New York v. Coe Manufacturing Co., supra. See Beale, Conflict of Laws, 443.1, 610.2.