Document: 359 U.S. 271 79 S.Ct. 763 3 L.Ed.2d 800 MELROSE DISTILLERS, INC., CVA Corporation and Dant Distillery Distributing Corporation, Petitioners,v.UNITED STATES of America. No. 404. Argued March 30, 1959. Decided April 20, Mr. Robert S. Marx, Cincinnati, Ohio, for petitioners. Richard A. Solomon, Washington, D.C., respondent. Justice DOUGLAS delivered the opinion Court. 1 Petitioners are corporations—two organized under Maryland law one Delaware law—and wholly owned subsidiaries Schenley Industries, Inc. They were indicted with others restraining trade, conspiring to monopolize attempting commerce in violation §§ 2 Sherman Act, 26 Stat. 209, 15 U.S.C. 1, 2, U.S.C.A. 2. Shortly after indictment was returned, petitioners dissolved their respective state statutes became separate divisions a new corporation same ultimate ownership. then moved dismiss on ground that dissolution abated proceeding. The District Court denied motions, holding applicable existence corporations continued so far as prosecution this criminal proceeding concerned. United States v. Shate Licensed Beverage Ass'n, 138 F.Supp. 685. pleaded nolo contendere levied fines against them. Appeals affirmed, 258 F.2d 726. case is here petition writ certiorari which we granted because conflict among Circuits.1 358 878, 125, 109. We start from premise federal domain prosecutions abate both death an individual defendant (List State Pennsylvania, 131 396, 9 794, 33 L.Ed. 222; Schreiber Sharpless, 110 76, 423, 28 65) corporate (Defense Supplies Corp. Lawrence Warehouse Co., 336 631, 634, 69 762, 763, 93 931), unless action saved by statute. need not decide whether alone would be sufficient save cause law. have situation where interplay makes it clear did escape responsibility Act kind decreed Law § 8 defines 'person' include 'existing' laws any State. question 'exists' purpose thus determined reference conclude lives these cut short, sometimes done dissolution, cf. Chicago Title & Trust Co. Forty-One Thirty-Six Wilcox Bldg.Corp., 302 120, 58 82 147, but sufficiently abate. 4 In Maryland, during period relevant here, though effective when articles had been accepted, 'in paying, satisfying ad d ischarging existing debts obligations * *.' (Flack's Md.Ann.Code 1951, Art. 23, 72(b). It also provided 78(a) 'such dissolution' shall 'abate pending suit or found no decisions interpreting sections; satisfied term 'proceeding,' matter how court may construe it,2 implies enough vitality make enterprise purposes Act. 5 statute seems equally clear, again there authoritative interpretation it. provides 'proceeding' begun before within three years continue 'until judgments, orders, decrees therein fully executed.' Del.Code Ann.1953, Tit. 8, 278; Addy Short, Terry 157, 47 Del. 89 A.2d 136, 139. elsewhere used Code including prosecutions;3 us consistent its normal construction.4 irrespective construed courts, 6 Policy reasons look result. After they simply more reason allowing them penalties than damages civil suits. As noted, cannot sent jail. discharge liabilities can effected only payment money. 7 Affirmed. See Line Material Cir., 202 929; Vanadium Corp., 10 230 646. Cf. P. F. Collier Son, 208 936, 40 A.L.R.2d 1389. A memorandum filed Attorney General's office states while rulings point General, 'the issue has covered opinions Fourth Circuit Appeals.' And adds, 'We wish express, however, our concurrence lower courts litigation.' 'Whenever informed 11, 1702. An argument contrary premised Ann., 1953, 281, trustees shall, allowances, expenses, costs, pay other due corporation.' urged 'debts' setting means debts. But too narrow reading light provision 279 contemplates entry judgments corporation.

Category: 7