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Three years later Reed married retired United States Army Colonel Grover W. She sued the show's production company for breach of contract and later settled out of court for over $1 million. She decided to move to California to attend Los Angeles City College on the advice of her aunt.
She is also well known for her role as Mary Hatch in Frank Capra's It's a Wonderful Life (1946). With appearances in over 40 films Reed received the 1953 Academy Award for Best Supporting Actress for her performance as Lorene Burke in the war drama From Here to Eternity.