Cannon Mfg. Co. v. Cudahy Packing Co., 267 U.S. 333 (1925)

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Cannon Manufacturing Company v. Cudahy Packing Company

No. 255

Argued January 28, 1925
Decided March 2, 1925
267 U.S. 333

ERROR TO THE DISTRICT COURT OF THE UNITED STATES

FOR THE WESTERN DISTRICT OF NORTH CAROLINA

Syllabus

1. Defendant, a Maine corporation, marketed its products in North Carolina through a subsidiary, an Alabama corporation which it completely dominated through stock ownership and otherwise, but a distinct corporate entity which did not act as the defendant’s agent, but bought the defendant’s goods and sold them to dealers to be shipped directly from the defendant.

Held:

(a) That the defendant corporation did not thereby do business in North Carolina so as to be present there and suable in the federal court. P. 334.

(b) That the concentration of the Alabama corporation’s stock in the defendant’s single ownership and the legal consequences of this under the Alabama law did not have the effect of rendering its business in North Carolina the business of.the defendant for purposes of jurisdiction. P. 337.

292 F. 169 affirmed.

Appeal from a judgment dismissing an action on contract for want of jurisdiction over the defendant corporation.