United States Supreme Court Cases & Opinions

U.S. Supreme Court

Kaufman v. Societe Internationale, 343 U.S. 156 (1952)

Kaufman v. Societe Internationale Pour

Participations Industrielles et Commerciales, S.A.

No. 172

Argued January 2, 1952

Decided April 7, 1952

343 U.S. 156

Syllabus

1. When the Alien Property Custodian, under § 5(b) of the Trading with the Enemy Act, as amended by the First War Powers Act of 1941, seizes American assets of a corporation organized under the laws of a neutral country but dominated and controlled by enemy aliens, the rights of innocent non-enemy stockholders to an interest in the assets proportionate to their stockholdings must be fully protected. Pp. 343 U. S. 158-160.

2. Under Rule 24(a)(2) of the Federal Rules of Civil Procedure, innocent non-enemy stockholders are entitled to intervene in a suit brought under § 9(a) of the Trading with the Enemy Act by a corporation, organized under the laws of a neutral country but dominated and controlled by enemy aliens, to recover American assets seized by the Alien Property Custodian under § 5(b), as amended by the First War Powers Act of 1941, when there is a showing that the rights of such innocent non-enemy stockholders will not be adequately protected by the corporation in such suit and they may be bound by the judgment in such suit. Pp. 343 U. S. 160-162.

88 U.S.App.D.C. 296, 188 F.2d 1017, reversed.

The District Court denied petitioners' motion to intervene in a suit brought by a corporation under § 9(a) of the Trading with the Enemy Act to recover assets seized by the Alien Property Custodian under § 5(b), as amended by the First War Powers Act of 1941. 90 F.Supp. 1011. The Court of Appeals affirmed. 88 U.S.App.D.C. 296, 188 F.2d 1017. This Court granted certiorari. 342 U.S. 847. Reversed, p. 343 U. S. 162.

Page 343 U. S. 157