Smith v. Kansas City Title & Trust Co.
United States Supreme Court
255 U.S. 180 (1921)
Smith (plaintiff), a shareholder of Kansas City Title & Trust (Company) (defendant), brought suit against the Company in the United States District Court for the Western Division of the Western District of Missouri. Smith sought to prevent the Company from investing in farm-loan bonds issued pursuant to the Federal Farm Loan Act of 1916 (Act), 40 Stat. 431. Under Missouri law, the Company was permitted to invest only in securities authorized by a valid law. The Act declared all farm-loan bonds to be lawful investments for fiduciary and trust funds. However, Smith’s complaint sought a declaration that the Act was unconstitutional and that, therefore, the issuance of farm-loan bonds to the Company would be invalid. The Company moved to dismiss. The district court granted the motion. Smith appealed.
Rule of Law
Holding and Reasoning (Day, 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 725,000 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 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 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.