United States v. Helen McCarthy Willoughby

“Men,” said Mr. Associate Justice Holmes, “must turn square corners when they deal with the government.”

In the instant case, the insured, when dealing with the Government, constructed a labyrinth of falsehoods and evasions that would hamper any administrative Theseus seeking the Minotaur of truth.

1. Statement of the Case and of the Facts

This action was brought by the appellee to recover benefits, as primary beneficiary, under her deceased son’s National Service Life Insurance policy. The appellant defended under 38 U.S. C.A. § 802 (w), on the ground that rein-statements of the policy had been obtained by fraudulent misrepresentations of the insured.

On November 21, 1956, the District Court, sitting without a jury, entered judgment for the appellee, and the appellant filed a notice of appeal on January 16, 1957.

The undisputed facts are as follows;

In September, 1944, John R. Willough-by, while in military service, was issued a National Service Life Insurance policy in the amount of $10,000. He received a medical discharge from the service in November, 1945, as suffering from diabetes mellitus, commonly called “diabetes”, or sometimes known as “sugar diabetes”. The Army…