United States Supreme Court Cases & Opinions

U.S. Supreme Court

Burnrite Coal Briquette Co. v. Riggs, 274 U.S. 208 (1927)

Burnrite Coal Briquette Co. v. Riggs

No. 227

Argued March 11, 14, 1927

Decided May 2, 1927

274 U.S. 208

Syllabus

1. The objection to the bringing of a suit, dependent on diversity of citizenship, in the district court in a which neither party is a citizen goes to the venue, and may be waived by general appearance and other action. P. 274 U. S. 211.

2. A federal district court may, under its general equity powers independently of any state statute, entertain a bill of a stockholder against the corporation for the appointment of at least a temporary receiver in order to prevent threatened diversion or loss of assets through gross fraud and mismanagement of its officers. P. 274 U. S. 212.

3. The fact that a bill seeking appointment of a receiver of a corporation is brought in a state other than that of the incorporation may lead the court to decline to interfere as a matter of comity or for want of equity, or it may require the court to limit the scope of the relief granted. But the fact of incorporation under the laws of another state does not preclude jurisdiction. P. 274 U. S. 212.

Page 274 U. S. 209

4. Where a receiver is appointed in a stockholder's suit by a federal court having jurisdiction, and the appointment is held on review to have been wrongly made, the court may, in the exercise of it judicial discretion, require that the receivers' charges be paid either by the corporation or by the unsuccessful plaintiff. P. 274 U. S. 214.

5. And where a court, in the exercise of jurisdiction, has erroneously appointed a receiver, the acquiescence of the defendant may influence the court, in it discretion, to make the receivership expense a charge upon the fund. P. 274 U. S. 214.

6. A decree of the circuit court of appeals reviewing a decree of the district court which appointed receivers, and directing a dismissal of the bill "for want of jurisdiction," doe not become the law of the case so as to require this Court, upon review of a second appeal from a decree allowing the receivers' expenses, to assume that the dismissal of the bill directed was properly for want of jurisdiction. P. 274 U. S. 215.

6 F.2d 226 affirmed.

Certiorari (269 U.S. 547) to a decree of the circuit court of appeals which affirmed one of the district court allowing receivers' expenses against a corporation in a stockholder's suit. See also 291 F.7d 4.