Supreme Court of the United States
United States v. Scophony Corporation of America
April 26, 1948333 U.S. 795
Summary
The Court held that Scophony Corporation of America was both "found" and "transacted business" in the Southern District of New York, making venue proper and service of process valid under §12 of the Clayton Act. The decision rests on a broad, practical business‑activity test that treats substantial corporate conduct in a district as sufficient to satisfy both venue and service requirements. The judgment of the district court was reversed and the case remanded for further proceedings consistent with this opinion. Justice Frankfurter, in a concurring opinion, agreed with the result but expressed reservations about the theoretical underpinnings of corporate jurisdiction.
Holding
- Whether Scophony was "found" in the Southern District of New York for purposes of venue under §12 of the Clayton Act.. Yes; Scophony was "found" in the district because its substantial business activities, including licensing, supervision of American Scophony, and continuous corporate conduct, satisfied the practical business test.
- Whether service of process on Scophony's agents in New York was valid under the "found" clause of §12.. Yes; service was valid because Scophony was "found" in the district under the same substantial‑business standard, and the agents served had irrevocable authority to act for the corporation.
Docket 41
Cited authorities
- 15 U.S.C. § 2
- 26 Stat. 209
- 50 Stat. 693
- 15 U.S.C. §§ 1
- 26 Stat. 210
- 38 Stat. 736
- 15 U.S.C. § 22
- 32 Stat. 823
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