Thomas v. Birmingham Ry., Light & Power Co.

Citations

• 195 F. 340
• 1912 U.S. Dist. LEXIS 1647

Syllabus

<p>1. Corporations (§ 661*)—Foreign Corporations—Right to She.</p> <p>A foreign corporation, which makes a contract in a state for performance there, without complying with the statute of the state imposing conditions on foreign corporations before engaging in business in the state and preventing the maintenance of actions by delinquent corporations, may sue in a federal court on the contract; but, where the state statute renders void all contracts made and transactions done by a delinquent corporation within the state, a delinquent corporation may not sue in a federal court.</p> <p>[Ed. Note.—For other cases, see Corporations, Cent. Dig. §§ 2539, 2543, 2544, 2546, 2563-2567; Dec. Dig. § 661.*]</p> <p>2. Courts (§ 366*)—Federal Courts—Decisions of State Courts.</p> <p>The decisions of a state court, invalidating contracts made in the state by a foreign corporation which has not complied with the laws of the state, will be followed by the federal courts, and no action can be maintained in the federal courts on such invalid contract.</p> <p>[Ed. Note.—For other cases, see Courts, Cent. Dig. §§ 954-957, 960-968; Dec. Dig. § 366.*</p> <p>Conelusiveness of judgment between federal and state courts, see notes to Kansas City, Ft. S. & M. R. Co. v. Morgan, 21 C. C. A. 478; Union Planters’ Bank v. City of Memphis, 49 C. C. A. 468.]</p> <p>3. Courts (§ 369*)—Federal Courts—Decisions of State Courts.</p> <p>The decisions of a state court that contracts made and transactions done in the state by a foreign corporation, which has not complied with the laws of the state, do not constitute interstate transactions, will be followed in the federal court in an action on such a contract, in the absence of conflicting and controlling authority in the federal courts.</p> <p>[Ed. Note.—For other cases, see Courts, Cent. Dig. §§ 950, 952, 955, 969-971; Dec. Dig. § 365.*]</p> <p>4. Bankruptcy (§ 280*)—Foreign Corporations—Noncompliance with Statutes—Effect'.</p> <p>Where a contract made in