Hugo Black

“ Section 26 [2] authorized the United States to recover damages against any person who obtains such property from the Government by 'fraudulent trick, scheme, or device * * *.' The complaint in this case charged that respondent Hougham, a nonveteran, combined with the other respondents, who are veterans, and obtained for his own business purposes hundreds of items of surplus property, including trucks, trailers and other equipment, by fraudulent use of the veteran respondents' priority certificates. ”

“ Plainly, however, the Government suffers just as much from a fraudulent cash sale as from a fraudulent credit sale. An interpretation of § 26 (b) (2) which allows recovery for the one but not for the other cannot be accepted. The respondents' contention for a new trial must be rejected.
The judgment is therefore reversed and the cause remanded to the District Court with directions to enter judgment for the United States under § 26 (b) (2) . ”

“ This contention rests upon the fact-set out in respondents' brief and not disputed by the Government-that after the trial court judgment was entered and before it was affirmed by the Court of Appeals, the Government accepted from respondents promissory notes totalling $8,000, the amount of the trial court judgment. The contention is that this fact alone renders the case moot or at least creates some sort of estoppel against the Government. We disagree. ”

“ Hougham
Argued: Oct. 18, 1960. --- Decided: Nov 7, 1960
Section 16 of the Surplus Property Act of 1944 [1] gave priority preferences to veterans in the purchase of surplus war materials. 58 Stat. 765. ”