LYNCH v. UNITED STATES *, 292 U.S. 571

Summary

In consolidated cases each plaintiff was the beneficiary under a policy for yearly renewable term insurance issued during the First World War pursuant to the War Risk Insurance Act of October 6, 1917, ch. 105, art. IV, §§ 400-405. Plaintiffs brought actions to recover the amounts alleged to be due. However, the circuit courts of appeals affirmed the dismissal of the actions, holding that the district courts were without jurisdiction to entertain the suits because the consent of the government to be sued had been withdrawn by the Economy Act, 48 Stat. 9. The Supreme Court reversed the judgments, finding that in repealing "all laws granting or pertaining to yearly renewable term insurance" Congress did not intend to repeal generally the section providing for suits. The court further found that Congress sought to take away the right of beneficiaries of yearly renewable term policies and not to withdraw their privilege to sue the United States.