Hobson

General Petroleum Corp. of California v. Hobson

Good Law
23 F.2d 349·1927 U.S. Dist. LEXIS 1667
United States District Court, Southern District of CaliforniaDecember 1, 1927No. 2959California767 words

Opinion

Lead Opinion

Neterer, J.

(after stating the facts as above). The powers of a corporation are fixed by its charter under authority of law. The exercise of the right of eminent domain is not an implied power of a corporation. A bank may not engage in the oil business without charter authority, nor may an oil company engage in the business of banking, unless authorized by its charter, nor may either exercise the right of eminent domain unless so authorized, and for a purpose authorized by law. A foreign corporation may not do business in this state unless authorized by the state, and a right which a foreign corporation seeks to enforce in the state must be pleaded as within its authorized powers. Section 1244, subd. 3, C. C. P. of California; Kern County and Others v. McDonald, 180 Cal. 7 , 179 P. 180 . The acts of a corporation not within its authorized powers are ultra vires, and courts will not countenance the exercise when its attention is challenged thereto.

Aside from the foregoing, it may be said that the plaintiff relies on section 13, c. 303, Laws of 1921, as granting special authority to this proceeding. This section reads: “Provided, further, that all of the rights and privileges as are now, or…

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