LEGAL PRECEDENT RE:CONTRACT FOR SECRET SERVICES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00709R000400070089-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: June 8, 2001
• Sequence Number: 89
• Content Type: MISC

Approved Foeige g0R6Wd-RDP84-00709R00040007
"An acts on oannot be maintained against tche goo x t3attWIt Z.t thy:
Court ctf Claims, upon a contract for secret eervioo., i t
the wax, r de botvaen the Pree.-I4 nt and the ult t:nt.
"APPEAL from the Court cif Claim.
au -. ,ooh ?Otte en for t ho ap" t.
I r, A*,atatent ?ttorn+e r. Gen
twin ~ i th,
"1r, Tt3 TICS Fly delivered. thu opinion of the court.
"`1'b.t.s case cones before us on appeal fro e the Court of
C1hirris. The action was brought; to remover compensation for
serviecs alleged to have been randered her the oleitrantatv
Int.esti,te, William A. Lloyd, uxjcier a contract with Preen ont
Li.ncolzn, Lade in July, 1801, by which 'he was to proceed South
and acec:ertath the number of troops stationed at difforPnt
points in the insurrectionary States, procure plans of forts
and fortifications, and gain such other.' information as" gl tl'
ve benitfioia1 to the government of th* united .fates, and
report the facts to the President; for which eerviees $e rao -
to be- -),aid 20O a month.
"The Court of Claims finds that Lloyd. proceeded# under
thn contract, within the robel lines, end remained there
during than entire period of the war co seting, agt from
time to time transmitting, inj't)rmation to the President; f
an ' that, upon the close of the war, be was only reimbursed:'
his espi see. But the court, being equally divided in
opinion an to the authority of the ?rosident V4 hind the
t'nited Eitates by the contract in guesttope decided for the
purpocec of an appeal, against the claims and dismissed the
Petition.
"We have no difficulty as to the authority of the Presidi t
in the .after. He was undoubtedly authorized during; the wai",
all cog !uider-in-chief of the armies of the Unitod States, to ':'
W-ploy al ecret agents to enter the rebel lines and obtain :inform
ration vespectinj? the strength, resource., and movements of
the onerty, and contracts to compensate such agents are so
far bin:Ein ~ upon the government an to render it lawful for
the Pressident to direct payment of the amount stipulated out
'
o?
the e:ontingeint fund under his control. Our objection is
r.ot to the contact, but to the notion upon it in ,the 'Court
of C4MUTtss. The service stipulated by the contract was a
secret service= the information nought "a to be obtained
clandestinel r, and vas to be cc uncoated privately$ the
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e'rspla; ,ent and the service were to be equally concealed* ,
"got; . e r3oyer and s ent must have endears to that tho-
cf' the c-tber wore to be for over eoaled respecter the re i.
tion of o1ther to the matter._. TIAO condition of the saga,0:
ment s iz licd frown the nature of the emplo ent axed Is
Implied in all secret a epioyi nts of the govor ent in. tip
of war, or upon usattera a 'fectirg our forei relations,
v hero a dl&e_loauro of the service might oo>tsspro a .. as r'aea
it j.-.,e zt in its public duties,- or- a alter the pre s s
or injure the charact-3r or the ag?elrit.. It upon coatr# m'ts.=-or
mdah a. tut tur. a an ao ti on acainat t go 'ernment could be
=a-d In the Court of ?ulaine vr3 ~z?r
dean h.ira sel +` a ti,tled to greater. or different
t c that a rted to s the :*h la service In 407-0&00
#
the aiometr of its discharge, with the detar la ot. deaL;ings
it ind.i'rid " offi c errs, m ...;ht be exposed, to the
serious d--trinent of the public. A secret service, with.,
liability to publicity in t1 do vay, would be i. + s~estble$ , ,
as such cecrwLces are sometimes irodtspens eble to the. t,ove .'
twit, its a: enta i.n those services ass et look for their Ct pane
action too the c ont it on t fund of the d epar' 8n./ . re rloyi ;
theui, and to such allowance ,from it *e those' o dispeinee
4.h:.t fund ,air award. The secrecy whioh guars cont,raats impose
pnonludes Bony action for their en:t'orcemeent., The publicity:,
produced by &n action would Itself bey ?a breach of a 't et
o that kind, hrid thus defeat a reooverg
"It .rear be etated ae a general pr.noiple, that pub1 .o
uclicy soda the tug ir tmanc a of any suit in a oourt of
juotice, the tr rsl of which would :.novitably .lead to the
dIA.;Clavurn of ru.tterq which the law iteelt regards spa amri.
es;, Aitil, ttri z:'espeotigr Thich it rlil not alliiw the. confidenaa
to be vi.nlaLencl. er; thii3 prinoiple sui.'tss: lot be: 3ntpi:ned
Tidiic1e iould require a d1sclosure of he c tfti ri bsl of t`
:onfeasi ona1, or th.oa, between husband and W'ife'
Or of
co.unioation:s, b-, a client to his counsel for professional
advice, or of a patient to his Physician for a: si Ar
Purpose. L ,m.h (-great ear reason a tts tv f thi kpplicat ."bn ' +C-f`
t.!7,o rJrincip:ye to canes of caxstx*aat for secret a rviees'v Wx:
the oycrrt -ant, as the existence of a Contract of that tin
i a.tegelf P. xa t not to be diev~oseed ,
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