Document: 330 U.S. 731 67 S.Ct. 1009 91 L.Ed. 1209 LAND, Chairman, Maritime Commission, et al.v.DOLLAR al. No. 207. Argued Feb. 11, 12, 1947. Decided April 7, [Syllabus from pages 731-733 intentionally omitted] Mr. Paul A. Sweeney, of Washington, D.C., for petitioners. Gregory Harrison, San Francisco, Cal., respondents. Justice DOUGLAS delivered the opinion Court. 1 Petitioners are present and former members United States Commission. Respondents stockholders Dollar Steamship Lines, Inc., Ltd. (Dollar Delaware), whose corporate name was changed to American President Ltd., subsequent execution in 1938 a contract out which litigation arises. By 1937 Delaware difficult financial straits. The problems confronting it various steps taken remedy situation need not be recapitulated here.1 It is sufficient purposes questions presented by this case say that Commission respondents entered into their common stock Delaware, endorsed blank, Commission; released some certain obligations agreed grant an operating subsidy make loan obtain another Reconstruction Finance Corporation. 2 granted loans were made. 1943 had fully paid all indebtedness due States. thereupon demanded return shares then claiming only been pledged as collateral debt paid. refused surrender shares, they under but transferred outright. Acting on theory indeed offered sale consideration substantial offers purchase them. 3 Thereupon instituted suit District Court Columbia, see 11 D.C.Code, §§ 301, 305, 306, petitioners unlawfully possession respondents' illegally withholding it. prayer restrained selling directed them moved preliminary injunction. submitted affidavits opposing motion. After hearing, its own motion dismissed complaint with prejudice, holding against Appeals reversed. 154 F.2d 307. here petition writ certiorari we because importance question presented.2 4 First. facts asserted support view called outright transfer pledge. But put one side two reasons. In first place function oppose decision merits. Issue, yet joined. And ruling Court, read it, based premise since right contract, States.3 Hence do think fact relied dismissing complaint. second place, although general rule would have authority consider jurisdiction basis well pleadings,4 type where dependent 5 allegations complaint, if proved, establish property claim belongs That conclusion follow either contentions established: (1) no or acquire outright; (2) even though such existed, resulted pledge shares. 6 If these contentions, rests law recover specific wrongfully withheld. At pledgors payment sound tort.5 7 viewed posture, very close v. Lee, 106 196, 240, 27 171. action ejectment tract land. defendants military officers who, acting orders President, took land converted part fort cemetery. For lawfulness tax On trial held plaintiffs valid possession. affirmed judgment over objection assertion Government act did foreclose judicial inquiry action; determination whether 'authority rightfully assumed exercise jurisdiction, must lead merits question.' at page 219, 259, further while adjudication res judicata cannot made party suit, courts resolve controversy between those who concluded agent officer acts beyond his answerable actions. Philadelphia Co. Stimson, 223 605, 619, 620, 32 340, 343, 344, 56 570; Sloan Shipyards Corp. Shipping Board Emergency Fleet Corp., 258 549, 567, 42 386, 388, 66 762. 8 Where enjoyment issue, agents sovereign, supra, has repeatedly approved. Cunningham Macon & Brunswick R. Co., 109 446, 452, 292, 296, 992; Tindal Wesley, 167 204, 17 770, 137; Smith Reeves, 178 436, 439, 20 919, 920, 44 1140; Scranton Wheeler, 179 141, 152, 153, 21 48, 53, 45 126; Goltra Weeks, 271 536, 545, 46 613, 616, 70 1074; Ickes Fox, 300 82, 96, 57 412, 417, 81 525; Great Northern Life Ins. Read, 322 47, 50, 51, 64 873, 874, 875, 88 1121. applicable assume record title n force decree private claimant. Though States, 222, 262, 171, settled parties Precisely same will true here, proved. posture before petitioners, being position restore held. 9 We trace principle ramifications. Cases rely distinguishable. This indirect attempt collect preventing government officials alter terminate contractual obligation pay money. See Wells Roper, 246 335, 38 317, 62 755; Mine Safety Forrestal, 326 371, 219. get performance deliver Goldberg Daniels, 231 218, 34 84, 58 191. sovereign admittedly sued seek compel conveyance enjoin disposition property, adverse claims allegedly superior equity rights arising Acts Congress. supra; State Minnesota Hitchcock, 185 373, 22 650, 954; Oregon 202 60, 26 568, 50 935; Naganab 473, 667, 1113; Louisiana Garfield, 211 70, 29 31, 53 92; Morrison Work, 266 481, 149, 69 394. Stanley Schwalby, 162 255, 271, 272, 16 754, 761, 40 960. 10 foregoing cases distinguishable one, matter logic easy reconcile practical considerations reflected policy forbids suits without consent. 'essential nature effect proceeding' may plain sought expend itself public treasury domain, interfere administration. Ex parte New York, 256 490, 500, 502, 41 588, 590, 591, 65 1057. so, sovereign. 374, 221. become tort-feasors exceeding limits authority. seize hold citizen's realty chattels, recoverable appropriate equity, he relegated Claims money judgment. dominant interest victim bring possessory reclaim latter category pleadings cast case. say, true, never withheld acted excess officers. ownership course decided illegal pledgors, entitled though, said, 12 intimate controversy. jurisdicti determine proceeding 13 Second. Motions Solicitor General substitute new longer members.6 added petitioners-defendants, deceased member, reserved other members. 329 700, 62. A majority joining more both motions considered briefed argued here. Moreover, necessary motions. Accordingly, vacate order substitution entered, so may, remand cause, pass unembarrassed any 14 affirmed. 15 Affirmed. BLACK REED, concurring. 18 As I states cause agree manner disposition. No damages Relief can obtained 19 plaintiffs, al., attached exhibit. signed individual member through duly authorized special counsel. alleged predecessors 'caused said company Commission.' They demand upon 'Maritime July, 1945. request denied 1945.' ultimate result 'be ordered court plaintiffs' stock, now unlawful custody defendants, lawful owners.' Taken whole, otherwise than alleging Although assert show virtue official positions basic proven, shown right. correct interpretation follows indispensable proceeding. Commonwealth Trust Smith, 159, 26, 28, how far statutory powers contracting retention certificates petition, individuals. holds restored Under circumstances, like inapplicable. Lee case, brought St tes retransfer complainants quiet claimed could ejected real involved loss piece paper, certificate, hands placed decree, successful. effective, require endorsement delivery, certificate still plaintiffs. convey Lee. Plaintiffs past want secure relief, should think, implead Whether unchallenged challenged cannot, seems me, determinative necessity making party. cited following significant Two similar ejectment.1 Other turn liability suits.2 Still others illegally.3 539, 614, 617, 1074, there lessee taking boats leased plaintiff also already taken. contained possibility issue raised treated threatened trespass. interests allege debt. Such effort actually done defendant. 191; 487, 394; 23 appears me affirm Appeals, remanding There suability Commission4 Administrative Procedure Act June 1946, U.S.C.A. § 1001 seq., considered. decided. details difficulties, teps reports Congress Commission: Financial Readjustments dated February 17, 1938; Reorganization 10, 1939. below final review 'fundamental conduct case.' Motors 323 377, 357, 359, 89 311, 156 A.L.R. 390. said: '* * legal right; therefore inescapable *.' (154 307, 308) passing dismiss fails state action, set forth evidence produced application injunction Polk Glover, 305 5, 9, 59 15, 16, 83 6; Gibbs Buck, 307 66, 76, 725, 731, 1111. when Court's raised, motion, Judicial Code 37, 28 U.S.C. 80, 80; Federal Rules Civil Procedure, 12(b), section 723c, inquire otherwise, exist. Wetmore Bymer, 169 115, 120, 121, 293, 295, 682; McNutt G neral 298 178, 184 780, 783, 80 1135; KVOS, Associated Press, 299 269, 278, 197, 201, 183. stated 71, 72, 729, 1111, 'As direction procedure mode left court.' Restatement Law Torts, 223, 237; Street, Foundations Legal Liability (1906), p. 160. Rule 25(d); Allen Regents University System Georgia, 304 444, 445, 980, 982, 82 1448. 126. 570. Merchant Marine Act, 49 Stat. 1988, 207, amended, 52 954, 2, 1117: 'The enter contracts, behalf disbursements, discretion, carry activities p otect, preserve, improve indebtedness, corporation within scope conferred charter.' Keifer 306 381, 516, 784.

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