Superintendent of Insurance v. Bankers Life & Casualty Co.
United States Supreme Court
404 U.S. 6 (1971)
Through a complex series of transactions, Begole (defendant) used the assets of Manhattan Casualty Co. (Manhattan) to purchase all of Manhattan’s stock from Bankers Life & Casualty Co. (defendant). Begole and an accomplice arranged for a $5 million loan which they used to purchase the stock. They then caused Manhattan to sell all its U.S. Treasury bonds for roughly $5 million and used that amount to repay the lender. Manhattan, represented by New York’s Superintendent of Insurance (plaintiff), sued numerous parties, alleging that Manhattan was defrauded in connection with the sale of securities in violation of §10b of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The trial court granted the defendants’ motion to dismiss. The appellate court affirmed, holding that since no investor was injured and since the securities market was untainted, no remedy was available under Rule 10b-5. The Superintendent of Insurance appealed to the Supreme Court.
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 169,000 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.