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Civil Procedure Keyed to Glannon
Black & White Taxicab & Transfer Co. v. Brown & Yellow Taxicab & Transfer Co.
Citation:276 U.S. 518 (1928)
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Pursuant to a contract between Respondent, a Tennessee corporation that carried on a transportation transfer business in Kentucky, and the Louisville & National Railroad Company, Respondent was given exclusive rights and privileges regarding soliciting passengers and baggage from a depot and trains in consideration of monthly payments made to the Railroad Company. Respondent sued Petitioner for interfering with this contract. The Railroad Company was also named as a defendant for failing to comply with the contract. In its answer, Petitioner alleged that Respondent was incorporated in Tennessee for the fraudulent purpose of giving the federal district court jurisdiction, in order to avoid the laws of Kentucky, under which contracts such as the one at issue were held invalid. The district court entered judgment for Respondent. Petitioner appealed. The Court of Appeals affirmed. The Supreme Court granted certiorari.
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