Strong v. Repide
United States Supreme Court
213 U.S. 419 (1909)
- Written by Sean Carroll, JD
Facts
Strong (plaintiff) owned stock in the Philippine Sugar Estates Development Company, Limited (the company). Repide (defendant) was a director of the company and owned about three-quarters of the company’s stock. He was also the company’s administrator general and thus had exclusive control of the company’s management. The company owned profitable land in the Caribbean. The Philippine government (government) made an offer to purchase this land. Repide handled the company’s negotiations with the government. While the offer from the government was being considered, Repide hired a third party broker to buy Strong’s stock in the company. This third party broker hired another third party to communicate with Strong. Neither Repide nor the first broker he hired disclosed the pending land sale. The broker communicating with Strong did not know that Repide was the actual purchaser of Strong’s stock. The sale of the land to the government resulted in the company’s stock increasing in value tenfold. Strong brought suit against Repide, claiming fraud and seeking to void Repide’s purchase of her stock. The United States Supreme Court granted certiorari.
Rule of Law
Issue
Holding and Reasoning (Peckham, J.)
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