International Life Ins. Co. v. Sherman, 262 U.S. 346 (1923)

International Life Ins. Co. v. Sherman

No. 295

Argued March 15, 1923
Decided May 21, 1923
262 U.S. 346

ERROR TO THE SUPREME COURT

OF THE STATE OF MISSOURI

Syllabus

Stockholders of a corporation equitably owning the stock of an insurance company brought suit against the two companies and their managers in the district court for the purpose of protecting the assets of the insurance company through a receiver, against mismanagement; other like stocltholders, and holders of annuity certificates issued by the insurance company intervening, proposed a plan for reorganizing that company which provided, inter alia, that holders of such annuity certificates should pay a stated amount on each certificate, surrender their certificates for cancellation, and receive stock of the insurance company in exchange, and that all who failed to avail themselves of this privilege within 20 days, should be barred and estopped from any claim against the company, and their certificates be deemed cancelled, etc. Held that, as to certificate holders who were not parties and did not appear in the suit, and against whom no relief was prayed, the attempt to bar their rights and cancel their certificates was plainly void, and that the contention that a judgment of a state court in so holding failed to give full faith and credit to the district court’s decree, as required by the Constitution and acts of Congress, was frivolous. P. 351.

Writ of error to review 291 Mo. 139 dismissed; certiorari denied.

Error to a judgment of the Supreme Court of Missouri affirming a judgment against the insurance company on annuity certificates issued by its predecessor.