Black & White Taxicab & Transfer Co. v. Brown & Yellow Taxicab & Transfer Co.
United States Supreme Court
276 U.S. 518 (1928)
In 1925, Brown & Yellow Taxicab & Transfer Co. (Brown) (plaintiff), negotiated a contract with Louisville & Nashville Railroad Company (the Railroad) (defendant), for an exclusive license to enter into the Railroad’s property and solicit transfers. Brown alleged that the Railroad began to allow Brown’s competitors to enter on the property in violation of the exclusive agreement. Black & White Taxicab & Transfer Co. (Black)(defendant) was one of those competitors. At that time, all parties were Kentucky corporations. Next, Brown’s shareholders created a corporation under Tennessee law and transferred the business, contracts, and assets to the new corporation for the purpose of creating diversity of citizenship. Brown then sued the defendants in the United States District Court for the Western District of Kentucky. Black alleged that Brown incorporated in Tennessee in order to fraudulently create diversity jurisdiction, and that Brown’s contract with the Railroad was void as against the public policy of the state of Kentucky. The district court concluded that there was no fraud. The court also held the contract between Brown and the Railroad valid, and determined that Black had interfered with Brown’s contractual rights. The court issued an injunction barring Black from further interference. Black appealed to the United States Court of Appeals for the Sixth Circuit. The ruling was upheld, and Black petitioned the United States Supreme Court for certiorari, which was granted.
Rule of Law
Holding and Reasoning (Butler, J.)
Dissent (Holmes, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.