Beneficial Fin. Co. Of New York, Inc. v. Ronald Dallas & Mary E. Dallas, & United States Postal Serv., 571 F.2d 125 (2d Cir. 1978). · Go Syfert
Beneficial Fin. Co. Of New York, Inc. v. Ronald Dallas & Mary E. Dallas, & United States Postal Serv., 571 F.2d 125 (2d Cir. 1978). Cases Citing This Book View Copy Cite
42 citation events (7 in the last 25 years) across 19 distinct courts.
Strongest positive: Pennsylvania, Department of Environmental Resources v. United States Postal Service (pamd, 1992-12-30)
Treatment trajectory · 1978 → 2026 · click a year to view as-of
1978 2002 2026
Top citers, strongest first. 22 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Pennsylvania, Department of Environmental Resources v. United States Postal Service
M.D. Penn. · 1992 · quote attribution · 1 verbatim quote · confidence high
the breadth of the waiver embodied in the ... postal reorganization act is further emphasized by the few, isolated limitations on consent to suit which congress specifically retained for the usps.
examined Cited as authority (verbatim quote) Young v. United States Postal Service (3×) also: Cited as authority (rule)
S.D.N.Y. · 1988 · signal: see also · quote attribution · 2 verbatim quotes · confidence high
congressional purpose in creating usps was to allow it to operate in 'businesslike' fashion
cited Cited as authority (rule) Greg Adkisson v. Jacobs Engineering Group, Inc
6th Cir. · 2022 · confidence medium
Co. of N.Y. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978); then May Dep’t Stores Co. v. Williamson, 549 F.2d 1147, 1148 (8th Cir. 1977); then Standard Oil Div., Am.
cited Cited as authority (rule) Greg Adkisson v. Jacobs Eng'g Group, Inc
6th Cir. · 2022 · confidence medium
Co. of N.Y. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978); then May Dep’t Stores Co. v. Williamson, 549 F.2d 1147, 1148 (8th Cir. 1977); then Standard Oil Div., Am.
discussed Cited as authority (rule) Alabama One Credit Union v. Toppins
N.D. Ala. · 2020 · confidence medium
Co. of N.Y. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978) (concluding, in case where United States Postal Service sought immunity from garnishment proceedings, that there was “no showing of grave interference with any USPS function”); May Dep’t Stores Co. v. Williamson, 549 F.2d 1147, 1148 (8th Cir. 1977) (rejecting Postal Service’s argument that sovereign immunity from garnishment proceedings was “necessary to avoid grave interference with its performance”); Standard Oil Div., Am.
cited Cited as authority (rule) Banks v. Merit Systems Protection Board
Fed. Cir. · 2017 · confidence medium
Co. of N.Y. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978).
discussed Cited as authority (rule) Gildor v. United States Postal Service
N.D.N.Y. · 2007 · confidence medium
However, there is significant precedent showing that USPS is subject to suit on contract claims. 39 U.S.C. §§ 401 (1) (waiver of USPS sovereign immunity), 409(a) (granting district courts jurisdiction over suits by and against USPS); Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125, 128 (2d Cir1978) (noting that USPS’ authority to act as an independent establishment, including the power to make contracts, comes with responsibility and liability which it cannot ignore); Benderson Dev.
discussed Cited as authority (rule) Gildor v. United States Postal Service
N.D.N.Y. · 2007 · confidence medium
Co. v. Dallas, 571 F.2d 125, 128 (2d Cir.1978) (“there is no doubt that the congressional purpose in establishing the USPS was to permit the postal service to operate in a business-like fashion”) (internal quotation and citation omitted); Young v. U.S. Postal Serv., 698 F.Supp. 1139, 1141 (S.D.N.Y.1988).
cited Cited as authority (rule) Barbour-Knight v. Civil Service Commission of Philadelphia
Pa. Commw. Ct. · 1997 · confidence medium
Id. at 128 (citations omitted) (emphasis added).
discussed Cited as authority (rule) Far West Federal Bank, S.B. v. Director, Office Of Thrift Supervision
2d Cir. · 1991 · confidence medium
As was remarked in Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125, 128 (2d Cir.1978), "[i]f Congress intended a more narrow waiver of USPS immunity, it could easily have drafted the clause accordingly" (regarding Postal Service "sue and be sued" clause, 39 U.S.C.
discussed Cited as authority (rule) Far West Federal Bank, S.B. v. Director, Office of Thrift Supervision
Fed. Cir. · 1991 · confidence medium
As was remarked in Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125, 128 (2d Cir.1978), “[i]f Congress intended a more narrow waiver of USPS immunity, it could easily have drafted the clause accordingly” (regarding Postal Service “sue and be sued” clause, 39 U.S.C. § 401 (1)).
discussed Cited as authority (rule) Grandison v. United States Postal Service
S.D.N.Y. · 1988 · confidence medium
This broad waiver, which is to be construed liberally, Franchise Tax Board, supra, 467 U.S. at 520 , 104 S.Ct. at 2554 , subjects the USPS to an action for garnishment, Beneficial Finance Co. v. Dallas, 571 F.2d 125, 128 (2nd Cir.1978), and to suit under the terms of the Miller Act, 40 U.S. C. §§ 270a-270f (1982), Active Fire Sprinkler, supra, 811 F.2d at 753 .
discussed Cited as authority (rule) Michele Portmann, Doing Business as Grafica, an Individual v. United States (2×) also: Cited "see, e.g."
7th Cir. · 1982 · confidence medium
These holdings are particularly significant in light of the fact that the statutory predecessor of the Postal Service, the United States Post Office Department, “had been a sovereign federal instrumentality, immune from state power or regulation." Beneficial Finance Co. v. Dallas, 571 F.2d 125, 128 (2nd Cir. 1978).
cited Cited as authority (rule) Peoples Gas, Light And Coke Company v. United States Postal Service
7th Cir. · 1981 · confidence medium
Standard Oil Div., American Oil Co. v. Starks, 528 F.2d 201, 202 (7th Cir. 1975), citing Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978).
cited Cited as authority (rule) Peoples Gas, Light & Coke Co. v. United States Postal Service
7th Cir. · 1981 · confidence medium
Standard Oil Div., American Oil Co. v. Starks, 528 F.2d 201, 202 (7th Cir. 1975), citing Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978).
discussed Cited as authority (rule) Sportique Fashions, Inc. v. Sullivan
9th Cir. · 1979 · confidence medium
Thus, while the “sue and be sued” clause may now permit suits against the Postal Service that were prohibited against its predecessor, such as garnishment proceedings, see Beneficial Finance v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978); May Department Stores Co. v. Williamson, 549 F.2d 1147, 1148 (8th Cir. 1977); Standard Oil Division v. Starks, 528 F.2d 201, 204 (7th Cir. 1975), § 2680(b) remains as one of the limitations to consent to suit which Congress specifically retained for the Postal Service.
discussed Cited as authority (rule) Sportique Fashions, Inc. v. William Sullivan
9th Cir. · 1979 · confidence medium
Thus, while the "sue and be sued" clause may now permit suits against the Postal Service that were prohibited against its predecessor, such as garnishment proceedings, See Beneficial Finance v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978); May Department Stores Co. v. Williamson, 549 F.2d 1147, 1148 (8th Cir. 1977); Standard Oil Division v. Starks, 528 F.2d 201, 204 (7th Cir. 1975), § 2680(b) remains as one of the limitations to consent to suit which Congress specifically retained for the Postal Service.
discussed Cited "see" Associates Financial Services of America, Inc. v. Anthony Robinson and Lillie M. Robinson, United States Postal Service, Garnishee-Defendant
5th Cir. · 1978 · signal: see · confidence high
See Beneficial Finance Co. of New York, Inc. v. Dallas, 571 F.2d 125 (2nd Cir. 1978); General Electric Credit Corporation v. Smith, 565 F.2d 291 (4th Cir. 1977); Goodman’s Furniture Company v. United States Postal Service, 561 F.2d 462 (3rd Cir. 1977); May Department Stores Co. v. Williamson, 549 F.2d 1147 (8th Cir. 1977); Standard Oil v. Starks, 528 F.2d 201 (7th Cir. 1975).
discussed Cited "see, e.g." Global Mail Limited v. United States Postal Service, United Parcel Service, Incorporated Air Courier Conference of America, Amici Curiae
4th Cir. · 1998 · signal: see also · confidence medium
As identified in Meyer, supra, there are three ways in which the presumption of immunity suggested by the “broad” waiver may be rebutted: (1) when the waiver would conflict with a statutory or constitutional scheme; (2) when there is plain evidence of congressional intent to restrict the waiver; or (3) when a broad reading would lead to “grave interference with performance of a governmental function.” 510 U.S. at 480 , 114 S.Ct. at 1003 (quoting Burr, 309 U.S. at 245 , 60 S.Ct. at 490-91 ; see also Beneficial Finance Co. v. Dallas, 571 F.2d 125, 128 (2d Cir.1978)).
discussed Cited "see, e.g." Global Mail Limited v. US Postal Service
4th Cir. · 1998 · signal: see also · confidence medium
As identified in Meyer, supra, there are three ways in which the presumption of immunity suggested by the "broad" waiver may be rebutted: (1) when the waiver would conflict with a statutory or con- stitutional scheme; (2) when there is plain evidence of congressional intent to restrict the waiver; or (3) when a broad reading would lead to "grave interference with performance of a governmental function." 510 U.S. at 480 (quoting Burr, 309 U.S. at 245 ; see also Beneficial Finance Co. v. Dallas, 571 F.2d 125, 128 (2d Cir. 1978)).
discussed Cited "see, e.g." Active Fire Sprinkler Corp. v. The United States Postal Service and John T. Brady and Company, Defendants
2d Cir. · 1987 · signal: see also · confidence medium
Franchise Tax Board v. USPS, 467 U.S. 512, 517-18, 520 , 104 S.Ct. 2549, 2552-53, 2554 , 81 L.Ed.2d 446 (1984) (citing FHA v. Burr, 309 U.S. 242, 245 , 60 S.Ct. 488, 490 , 84 L.Ed. 724 (1940)); see also Beneficial Finance Co. v. Dallas, 571 F.2d 125, 127-28 (2d Cir.1978).
discussed Cited "see, e.g." Milner v. Bolger
E.D. Cal. · 1982 · signal: compare · confidence low
Compare, Associates Financial Services of America, Inc. v. Robinson, 582 F.2d 1 (5th Cir. 1978), Beneficial Finance Co. v. Dallas, 571 F.2d 125 (2nd Cir. 1978), General Electric Credit Corp. v. Smith, 565 F.2d 291 (4th Cir. 1977), Goodman’s Furniture Co. v. United States Postal Service, 561 F.2d 462 (3rd Cir. 1977), May Department Stores Co. v. Williamson, 549 F.2d 1147 (8th Cir. 1977), Standard Oil Division, American Oil Co. v. Starks, 528 F.2d 201 (7th Cir. 1976), Lincoln National Bank v. Marotta, 442 F.2d 49 (N.D.N.Y.1977), Bank of Virginia v. Tompkins, 434 F.Supp. 787 (E.D.
Retrieving the full opinion text from the archive…
BENEFICIAL FINANCE CO. OF NEW YORK, INC., Plaintiff-Appellant,
v.
Ronald DALLAS and Mary E. Dallas, Defendants, and United States Postal Service, Defendant-Appellee
518, Docket 77-6137.
Court of Appeals for the Second Circuit.
Feb 23, 1978.
571 F.2d 125
Joseph A. Greenman, Hill & Cook, Syracuse, N. Y., for plaintiff-appellant., Gerald Houlihan, Asst. U. S. Atty., Rochester, N. Y., Richard J. Arcara, U. S. Atty. for the Western District of New York, Buffalo, N. Y., for defendant-appellee.
Kaufman, Lumbard, Mulligan.
Cited by 31 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 63%
Citer courts: S.D. New York (1)
MULLIGAN, Circuit Judge:

This appeal raises the issue of whether the United States Postal Service (USPS) is immune from commercial garnishment proceedings. On July 26, 1977 the United States District Court for the Western District of New York, through the Honorable Harold P. Burke, held that the USPS has sovereign immunity from commercial garnishment proceedings. The district court granted summary judgment in favor of the USPS and quashed the income execution served by Beneficial Finance Company of New York, Inc. (Beneficial) which required the USPS to garnish the wages paid to its employee, Ronald Dallas. It is undisputed that Beneficial had recovered a judgment against Dallas in the Supreme Court of the State of New York, Chemung County, and that an income execution had been issued which the USPS had refused to honor. Judge Burke’s decision and order cited no authority in support of his ruling. On this appeal the Government acknowledges that the Fourth, Third, Eighth and Seventh Circuits have all squarely held that the USPS is not immune from state garnishment process. [1] We agree with the uniform view of[*127] our sister circuits and reverse the judgment and order below. [2]

The USPS takes the position that the “sue and be sued” clause, 39 U.S.C. § 401(1) [3] in the Service’s authorizing statute should not be construed as a general waiver of sovereign immunity rendering it amenable to garnishment proceedings. The circuit court opinions rejecting the claim of the USPS to sovereign immunity rest upon a trilogy of Supreme Court cases. R.F.C. v. Menihan Corp., 312 U.S. 81, 61 S.Ct. 485, 85 L.Ed. 595 (1941); F.H.A. v. Burr, 309 U.S. 242, 60 S.Ct. 488, 84 L.Ed. 724 (1940); Keifer & Keifer v. R.F.C., 306 U.S. 381, 59 S.Ct. 516, 83 L.Ed. 784 (1939). All three cases stress that a general “sue and be sued” clause in a statute creating a federal corporation will be interpreted by the Court as a general waiver of sovereign immunity as to that entity. The keystone of this triumvirate is Burr. In that case the Court broadly stated that the doctrine of sovereign immunity is disfavored and that waivers by Congress of governmental immunity for federal instrumentalities should be liberally construed. 309 U.S. at 245, 60 S.Ct. at 490. As Mr. Justice Douglas there stated:

[W]hen Congress establishes such an agency, authorizes it to engage in commercial and business transactions with the public, and permits it to “sue and be sued”, it cannot be lightly assumed that restrictions on that authority are to be implied. Rather if the general authority to “sue and be sued” is to be delimited by implied exceptions, it must be clearly shown that certain types of suits are not consistent with the statutory or constitutional scheme, that an implied restriction of the general authority is necessary to avoid grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the “sue and be sued” clause in a narrow sense. In the absence of such showing, it must be presumed that when Congress launched a governmental agency into the commercial world and endowed it with authority to “sue or be sued”, that agency is not less amenable to judicial process than a private enterprise under like circumstances would be.

Id. (footnote omitted).

Clearly, the rationale of Menihan, Burr and Keifer & Keifer establishes a strong presumption that the USPS is amenable to the legal proceedings .in issue. The Government, in attempting to rebut this presumption, raises several arguments which we find unpersuasive. The USPS argues that, contrary to the above noted Supreme Court eases, the “sue and be sued” clause should not necessarily be given a broad, literal interpretation. However, the cases on which it relies for a more restrictive construction of such a clause do not involve the creation of federal agencies. Porto Rico v. Rosaly, 227 U.S. 270, 33 S.Ct. 352, 57 L.Ed. 507 (1913) and Chewning v. District of Columbia, 73 U.S.App.D.C. 392, 119 F.2d 459, cert. denied, 314 U.S. 639, 62 S.Ct. 74, 86 L.Ed. 513 (1941), considered the “sue and be sued” clause in conjunction with acts creating the sovereign itself (Territory of Puerto Rico) and a quasi-sovereign municipality (District of Columbia). Here, on the other hand, the Postal Reorganization Act of 1970, 39 U.S.C. § 101 et seq., merely created a governmental instrumentality. Keifer & Keifer v. R.F.C., supra, indicated that “the government does not become the conduit of its immunity in suits against its agents or instrumentalities merely because they do its work.” 306 U.S. at 388, 59 S.Ct. at 517.

USPS also argues that it was not launched into the commercial arena as were[*128] the New Deal agencies such as the R.F.C. or F.H.A. Rather, the USPS asserts that it is a statutory successor to the Post Office Department, which had been a sovereign federal instrumentality immune from state power or regulation. Thus the Service claims the immunity long possessed by that Department. There are undoubtedly differences between the functions of the federal agencies involved in the Supreme Court trilogy and those of the USPS. However, there is no doubt that the congressional purpose in establishing the USPS was to permit the postal service to operate in a “ ‘business-like’ ” fashion. See Standard Oil Division, American Oil Co. v. Starks, 528 F.2d 201, 202 (7th Cir. 1975). To this end Congress removed the USPS from the political sphere and authorized it to act as an “independent establishment,” id. at 202-03; 39 U.S.C. § 201, with powers equivalent to a private business enterprise, such as the power to make contracts, keep accounts, and to acquire and lease property. 39 U.S.C. § 401. Moreover, apart from the limitations imposed by the Private Express Statutes regarding “letter mail”, 39 U.S.C. §§ 601-06, 18 U.S.C. §§ 1693-96, the USPS competes with private carriers in the delivery of mail. Standard Oil Division, American Oil Co. v. Starks, supra, at 204. We find, therefore, that the claim that the USPS should retain the broad immunity afforded its predecessor simply ignores the responsibilities which attend its new autonomy. [4]

Furthermore, Congress enacted the statutory authorization of the USPS sdme thirty years after the Supreme Court’s decision in F.H.A. v. Burr, supra. Hence, there was ample forewarning of the judicial construction which would be given to a broadly worded “sue and be sued” clause. Had Congress intended a more narrow waiver of USPS immunity, it could easily have drafted the clause accordingly. Indeed, the breadth of the waiver embodied in the “sue and be sued” clause of the Postal Reorganization Act is further emphasized by the few, isolated limitations on consent to suit which Congress specifically retained for the USPS. See Standard Oil Division, American Oil Co. v. Starks, supra, at 203.

Finally, there is no clear demonstration that any of the three Burr exceptions are applicable in this case — there is no inconsistency with any statutory or constitutional scheme, no plain congressional intent to use the clause restrictively, and no showing of grave interference with any USPS function. In view of all the above, we see no proper alternative to literal interpretation of the “sue and be sued” clause under the Supreme Court cases which we have discussed and which have been followed on this issue by four other circuits.

Reversed and remanded for further proceedings in accordance with this opinion.

1

. General Electric Credit Corp. v. Smith, 565 F.2d 291 (4th Cir. 1977); Goodman’s Furniture Co. v. United States Postal Service, 561 F.2d 462 (3d Cir. 1977); May Department Stores Co. v. Williamson, 549 F.2d 1147 (8th Cir. 1977); Standard Oil Division, American Oil Co. v. Starks, 528 F.2d 201 (7th Cir. 1975). The question has also been the subject of numerous conflicting district court decisions. See cases cited in Goodman’s Furniture Co. v. United States Postal Service, supra, at 463 n.2.

2

. We also note that subsequent to the decision of Judge Burke the same issue presented here was decided by another court in this circuit. The Honorable Howard G. Munson, United States District Judge for the Northern District of New York, found that the USPS does not enjoy sovereign immunity and that its employees’ wages are subject to state garnishment proceedings. Lincoln National Bank and Trust Co. v. Marotta, 442 F.Supp. 49 (N.D.N.Y.1977).

3

. 39 U.S.C. § 401 provides in pertinent part:

The Postal Service shall have the following general powers:

(1) to sue and be sued in its official name
4

. Appellee contends that a congressional intent that the USPS generally be immune from garnishment can be inferred from 42 U.S.C. §§ 659, 662(a). These amendments to the Social Security Act were adopted subsequent to enactment of the Postal Reorganization Act of 1970. They provide that wages of federal employees — including USPS employees — shall be subject to garnishment orders for alimony and child support. The USPS asserts that the inclusion of the USPS in this statutory scheme indicates that Congress believes the USPS retains a general immunity from garnishment.

We agree, however, with those courts which have been unpersuaded by this reasoning. E. g., United Virginia Bank/National v. Eaves, 416 F.Supp. 518 (E.D.Va.1976); Iowa-Des Moines National Bank v. United States, 414 F.Supp. 1393 (W.D.Iowa 1976). These sections create a blanket exception from immunity for all federal agencies and corporations respecting certain garnishments. Logically, then, according to appellee’s position these sections for the first time abrogated immunity from garnishment for all federal agencies and corporations. Since under the Burr trilogy it is clear that many federal instrumentalities were not immune from suit prior to § 659, the argument of USPS proves too much. United Virginia Bank/National v. Eaves, supra, at 522. We are therefore unwilling to read into §§ 659, 662(a) a congressional intent determinative of the issue at bar.