From our private database of 33,800+ case briefs...
SEC v. Fifth Avenue Coach Lines, Inc.
United States District Court for the Southern District of New York
289 F. Supp. 3 (1968)
Fifth Avenue Coach Lines, Inc. (Fifth Avenue) (defendant); its subsidiary Surface Transit, Inc. (Surface); and Surface’s subsidiary Westchester Street Transportation Company, Inc. (Westchester) operated bus lines in New York City. New York City acquired all bus lines of Fifth Avenue and Surface through condemnation, and Fifth Avenue ultimately received a condemnation award of $11.5 million. Prior to receiving the award, Fifth Avenue’s president made general statements about using the award money for investments. Once it received the award, Fifth Avenue initially deposited the money into several interest-bearing accounts. Thereafter, Fifth Avenue purchased stock while it attempted to acquire other companies, mostly unsuccessfully. During this time, Fifth Avenue still had substantial cash. However, Fifth Avenue continued to purchase stock and ultimately ended up with substantially more securities and substantially less cash. At that time, the securities were Fifth Avenue’s main expenditure and main source of income. The Securities and Exchange Commission (SEC) (plaintiff) sought an injunction against Fifth Avenue, arguing that Fifth Avenue was an investment company within the meaning of § 3(a)(1) of the Investment Advisers Act at the time Fifth Avenue received the condemnation award because of the president’s statements about investing, or at least thereafter when it held its cash in interest-bearing accounts or when it began purchasing stock. Conversely, Fifth Avenue argued that it had never been primarily engaged in the business of investing securities but rather was in the business of acquiring companies, which was its reason for purchasing stock.
Rule of Law
Holding and Reasoning (McLean, 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 605,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead 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.Learn about our approachRead more about Quimbee
Here's why 605,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 33,800 briefs, keyed to 984 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.