1873 United States Supreme Court case
| Davenport v. Dows | |
|---|---|
 Supreme Court of the United States | |
| Decided March 18, 1873 | |
| Full case name | Davenport v. Dows |
| Citations | 85 U.S. 626 (more)18 Wall. 626; 21 L. Ed. 938; 1873 U.S. LEXIS 1336 |
| Court membership | |
| |
| Case opinion | |
| Majority | Davis, joined by a unanimous court |
Davenport v. Dows, 85 U.S. (18 Wall.) 626 (1873), is a US corporate law case concerning the derivative suits in Delaware.
Facts
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Judgment
Justice Davis said the following.
These rights the individual shareholder is allowed to assert in behalf of himself and associates, because the directors of the corporation decline to take the proper steps to assert them. Manifestly the proceedings for this purpose should be so conducted that any decree which shall be made on the merits shall conclude the corporation. This can only be done by making the corporation a party defendant. The relief asked is on behalf of the corporation, not the individual shareholder, and if it be granted, the complainant derives only an incidental benefit from it. It would be wrong, in case the shareholder were unsuccessful, to allow the corporation to renew the litigation in another suit involving precisely the same subject matter. To avoid such a result, a court of equity will not take cognizance of a bill brought to settle a question in which the corporation is the essential party in interest unless it is made a party to the litigation.
See also
| Sources on derivative suits | |
|---|---|
| Davenport v. Dows, 85 US 626 (1873) | |
| Shaffer v. Heitner, 433 US 186 (1977) | |
| Delaware General Corporation Law §141(a) | |
| Delaware Chancery Court Rules, Rule 23.1 | |
| Zapata Corp v. Maldonado, 430 A2d 779 (Del Sup 1981) | |
| Joy v. North, 692 F2d 880 (1982) | |
| Aronson v. Lewis, 473 A2d 805 (Del 1984) | |
| In re Oracle Corp. Derivative Litigation, 824 A2d 917 (2003) | |
| Meiselman v. Meiselman, 307 SE2d 551 (1983) | |
| See US corporate law and derivative suits |
References
External links
- Text of Davenport v. Dows, 85 U.S. (18 Wall.) 626 (1873) is available from: CourtListener Google Scholar Justia Library of Congress
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