De La Vergne Refrigerating MacHine Co. v. German Savings Institution

Citations

• 175 U.S. 40
• 20 S. Ct. 20
• 44 L. Ed. 65
• 1899 U.S. LEXIS 1546

Syllabus

<p>Under the laws of the State of New Tort, providing for the Organization of manufacturing corporations, such corporations are not authorized to purchase the stock of a rival corporation, for the purpose of suppressing competition and obtaining the management of such rival.</p> <p>Unless express permission be given to do so, it is not within the general powers of a corporation to purchase stock of other corporations for the purpose of controlling their management.</p> <p>Where an action is brought upon a contract by a corporation to purchase such stock for such purpose, it is a good defence that the corporation was prohibited by statute from entering into it; even though the corporation may be compelled, in an action on quantum meruit, to respond for the benefit actually received.</p>