Cosmopolitan Club v. Virginia - 208 U.S. 378 (1908)
U.S. Supreme Court
Cosmopolitan Club v. Virginia, 208 U.S. 378 (1908)
Cosmopolitan Club v. Virginia
Argued January 23, 1908
Decided February 24, 1908
208 U.S. 378
The charter of a private corporation may be forfeited or annulled for the misuse of it corporate privilege and franchise, and its forfeiture or annulment, by appropriate judicial proceeding, for such a reason would not impair the obligation of the contract, if any, arising between the state and the corporation out of the mere granting of the charter. The charter granted to a club, held, in this case, not to amount to such a contract
that the club could disregard the valid laws subsequently enacted by the state regulating the sale of liquor.
The judgment of a court of competent jurisdiction of Virginia, made after a hearing, that a corporation of that state had violated the liquor laws of the state and that, in pursuance of statutory provisions, the charter rights and franchises of the club ceased without further proceedings held in this case not to have violated any right belonging to the club under the contract or due process clauses of the Constitution of the United States.
The facts are stated in the opinion.