Summary

Portrait of Felix Frankfurter Felix Frankfurter Neirbo Company v. Bethlehem Shipbuilding Corporation…

Whatever may be said in support of the original adoption of a different rule, it has been the law for a century that, as respects the jurisdiction of the federal courts over a corporation in diversity of citizenship cases, the corporation is a citizen and resident of the state of incorporation and of no other state. I do not understand the court's opinion to repudiate the rule.
Source: Wikisource

Portrait of Felix Frankfurter Felix Frankfurter Neirbo Company v. Bethlehem Shipbuilding Corporation…

Men's minds had become habituated to corporate activities which crossed state lines. The fact that corporations did do business outside their originating bounds made intolerable their immunity from suit in the states of their activities. And so they were required by legislatures to designate agents for service of process in return for the privilege of doing local business. That service upon such an agent, in conformity with a valid state statute, constituted consent to be sued in the federal court and thereby supplanted the immunity as to venue, was the rationale of Schollenberger's case.
Source: Wikisource

Portrait of Felix Frankfurter Felix Frankfurter Neirbo Company v. Bethlehem Shipbuilding Corporation…

Bethlehem designated 'William J. Brown as the person upon whom a summons may be served within the State of New York.' The scope and meaning of such a designation as part of the bargain by which Bethlehem enjoys the business freedom of the State of New York, have been authoritatively determined by the Court of Appeals, speaking through Judge Cardozo: 'The stipulation is therefore a true contract. The person designated is a true agent. The consent that he shall represent the corporation is a real consent.
Source: Wikisource

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