Summary

Portrait of John Marshall Harlan II John Marshall Harlan II United States v. First National City Bank…

Assuming that there is no quasi in rem jurisdiction over the property (see Part IV, infra, p. 404) and no reasonable likelihood of obtaining personal jurisdiction over Omar, why should the court not use its naked power, to the extent that it could be brought to bear on others situated as was Citibank, to tie up Omar's property all over the world for the avowed purpose of coercing Omar into paying its taxes?
Use of judicial equity powers to coerce a party over whom the court has no jurisdiction or likelihood of obtaining jurisdiction is unheard of.
Source: Wikisource

Portrait of John Marshall Harlan II John Marshall Harlan II United States v. First National City Bank…

Yet the Court inexplicably finds equity in continuing the freeze order. [12] Omar, as a foreign corporation which allegedly withdrew its assets to avoid taxation by this country, naturally does not present a sympathetic aspect to this Court, but that is no justification for perpetuating a 'temporary' order which, without any jurisdiction basis, has tied up Omar's property for over two years. [13] Alleged tax dodgers, as much as those charged with crime, are entitled to due process treatment. And the hand of equity should be stayed long before it reaches constitutional limits.
Source: Wikisource

Portrait of John Marshall Harlan II John Marshall Harlan II United States v. First National City Bank…

There can be no doubt that the enforcement powers available to the District Court were adequate to accomplish that much of the end in view. Citibank was before the court. It had sufficient control over the Montevideo branch to require compliance with the freeze order, and if it did not exercise that control, the sanctions of contempt could be inflicted on officers and property of Citibank within the New York district. [2] But 'jurisdiction' is not synonymous with naked power. It is a combination of power and policy.
Source: Wikisource

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