Jacobs v. Mexican Sugar Co.

Citations

• 130 F. 589
• 1904 U.S. App. LEXIS 4831

Syllabus

<p>1. Jurisdiction of Federal Court — Suit foe Dissolution of Corporation-Enforcement of Statutory Remedy.</p> <p>A proceeding by a stockholder or creditor of a corporation for an Injunction and tbe appointment of a receiver for the corporation as an insolvent, under the New Jersey corporation act (P. L. 1896, p. 298, § 65), which authorizes such proceeding in the Court of Chancery whenever a corporation shall become insolvent or suspend its ordinary business for want of funds, is one involving a money controversy, so as to that extent to be within the jurisdiction of a federal court, where diversity of citizenship exists and the requisite amount is in dispute.</p> <p>2. Equity Jurisdiction — Federal Courts — Suit Based on Legal Demand.</p> <p>A simple contract creditor of a corporation cannot maintain a suit in a federal court of equity to establish his claim and for the seizure and application thereon of the property of the corporation, although the state statute may authorize such a proceeding in a state court.</p> <p>8. Same — Suit for Dissolution of Corporation — Statutory Remedy.</p> <p>A suit by a stockholder of an insolvent corporation for the dissolution of the corporation and the winding up of its affairs is within the jurisdiction of a federal court of equity, where such remedy is expressly given the stockholder by a state statute.</p> <p>1f 1. Dissolution of foreign corporations, see note to Republican Mountain Silver Mines v. Brown, 7 C. C. A. 421.</p>