J. W. Goldsmith, Jr.-Grant Co. v. United States

Background

The Grant Company sold a Hudson automobile but kept title until the buyer paid. The car was later used by the buyer and another man to move 58 gallons of distilled spirits on which federal tax had not been paid. The United States filed to condemn the car under an 1866 statute that makes things used to avoid taxes subject to forfeiture. The seller intervened, said it did not know of the illegal use, and argued that taking its property would violate due process.

Reasoning

The Court interpreted the 1866 law to permit forfeiture of a thing used in removing taxable goods, even if the owner did not participate in or know of the wrongdoing. The Court relied on earlier cases and traditions treating the offending thing as the subject of punishment, and it rejected the seller’s view that only the wrongdoer’s interest should be lost. The Court also declined to read other statutes as limiting this statute’s reach and said the illegal use itself is what triggers forfeiture.

Real world impact

As applied here, the decision means an owner who retains title can still lose a vehicle if it is used to transport untaxed liquor without the owner’s knowledge. The Court noted the law has not been applied in every imaginable way and left open whether extreme cases—such as stolen property—might be treated differently in later cases.

Dissents or concurrances

Justice McReynolds dissented, though the opinion contains no extended explanation of his views.