United States v. Royer

Background

A first lieutenant in the Army Medical Reserve Corps was recommended for appointment as a major in August 1918, but the Surgeon General approved him only as a captain. In September 1918 he was informed by the Adjutant General and General Pershing that he had been appointed major, accepted the commission, took the oath on October 18, 1918, wore major insignia, performed major duties, and was paid as a major. He was later told in February 1919 that the earlier notice was a mistake; he was promoted to major on February 17, 1919. When discharged on August 31, 1919, the Army deducted $240.19 as an overpayment and he sued to recover the deducted sum.

Reasoning

The core question was whether he should be treated as a major in fact while he acted and was paid, and therefore whether he must return the money. The Court applied the long-standing rule that a person who in good faith openly occupies an office, performs its duties under apparent authority, and is paid for those duties may be regarded as an officer de facto. Because he was ordered by his superiors, performed the duties in good faith during wartime, and was paid by the officers charged with pay, the Court concluded he should not be required to refund the payments.

Real world impact

The decision means service members who are told to assume a higher rank and who openly and in good faith perform those duties while paid may not have to repay later overpayments. The Court noted it did not decide whether the officer could have sued for unpaid salary, focusing instead on equity and good conscience in this factual situation.