Marin v. Augendahl - 247 U.S. 142 (1918)
U.S. Supreme Court
Marin v. Augendahl, 247 U.S. 142 (1918)
Marin v. Augendahl
Submitted March 18, 1918
Decided May 20, 1918
247 U.S. 142
Refusal of a state court to respect a sister state judgment upon the ground that the court rendering it exceeded its jurisdiction under its own constitution and laws presents a federal question based on the full faith and credit clause and the supplementary legislation of Congress.
The Minnesota Constitution, Art. 10, § 3, in providing for stockholders' liability, excepts corporations organized for carrying on manufacturing business.
(1) That the exception goes not to the jurisdiction, but only to the merits in proceedings to sequester the assets of a local corporation and assess stockholders to pay its debts, under Rev.Laws, 1905, §§ 3173, 3183187, and that an order of assessment, made in such proceedings by the proper Minnesota court, of general jurisdiction, which in other respects has acquired jurisdiction over the corporation, and through it over the shareholders, necessarily involves a determination that the corporation is not of the excepted class, and, in that respect, is in Minnesota conclusive against collateral attack by a shareholder, whether or not he was personally a party to the proceedings.
(2) That like force must be given such order in an action brought by the receiver, appointed in such proceedings, to enforce the assessment against a shareholder in the courts of another state, and that a refusal of those courts to be bound by it, upon the ground that the corporation was of the class excepted by the Minnesota Constitution, and erroneously treating this exception as jurisdictional, fails to accord the due faith and credit to which the order is entitled under the federal Constitution and laws.
32 N.D. 536 reversed.
The case is stated in the opinion.