United States Supreme Court Cases & Opinions

U.S. Supreme Court

Reconstruction Finance Corp. v. J. G. Menihan Corp., 312 U.S. 81 (1941)

Syllabus

1.Rule 54(d) of the Rules of Civil Procedure, providing that "costs against the United States, its officers, and agencies shall be imposed only to the extent permitted by law," is merely declaratory, and effected no change of principle. P. 312 U. S. 83.

2. The Reconstruction Finance Corporation, a government agency whose transactions are akin to those of private enterprise and

Page 312 U. S. 82

which is empowered by statute to sue and be sued, has not been endowed by Congress with governmental immunity from the cost and equitable allowance which are the natural and appropriate incidents of litigation. P. 312 U. S. 83.

Held, that, in an unsuccessful suit by the Corporation to enjoin alleged infringements of trademarks, the right to which it claims as part of property on which it has taken mortgages and assignments as security for a loan, the Corporation is liable for cost and the additional allowance made by courts of equity in such cases in accordance with sound equity practice.

111 F.2d 940 affirmed.

Certiorari, 311 U.S. 625, to review the affirmance of a decree which reversed an order of the District Court denying costs and an additional allowance, 29 F.Supp. 853, in a suit to enjoin an alleged infringement of trademarks.