Superintendent of Insurance of New York v. Bankers Life & Casualty Co.
United States Supreme Court
404 U.S. 6 (1971)
Begole bought all Manhattan Casualty Co. (Manhattan) stock from Bankers Life & Casualty Co. (Bankers) (defendant). Begole, Bourne, and others (Begole) got a check for the $5,000,000 purchase price from Irving Trust Co. (Irving) (defendant). Manhattan’s board agreed to sell its United States Treasury Bonds for almost $5,000,000 allegedly believing Manhattan would receive a certificate of deposit in return. Instead, the money was deposited into Manhattan’s Irving account to cover the check for the stock purchase. Irving gave Manhattan a new check, which the president selected by Begole gave to Belgian-American Bank & Trust Co. (Belgian) in exchange for a certificate of deposit. That certificate was given to New England Note Corp. (New England), who gave it to Belgian as security for a loan made by Belgian to New England to pay back the second check. Manhattan’s books did not show the depletion of assets. Manhattan, through its representative New York’s Superintendent of Insurance (plaintiff), sued for securities fraud under Securities Act of 1933, 15 U.S.C. § 17(a), and Securities Exchange Act of 1934 (SEA), 15 U.S.C. § 10(b). The district court dismissed the case, and the court of appeals upheld the dismissal. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Douglas, 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 175,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 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.