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21
back taxes from the property owner plus interest. The law stated that if the property
owner fails to pay the amount due for two succeeding years, Barrow could apply for a
tax deed giving him lawful ownership to the property.
After waiting three years instead of the minimum of two. Barrow paid required
fees of $102 to the clerk of the court and received a tax-deed giving him ownership of
the Kenon home. Barrow informed the Kenons that he owned their house and gave
them notice to buy the property from him or to move within a specified time. The
Kenons were unable to pay or to afford other housing and they refused to move.
Their plight made the national news and the Kenons began to receive financial
contributions. They also obtained free legal services from a local legal aid
organization. Barrow sued to assert his lawful right of ownership and to move the
Kenons from the house.
The trial court judge decided that although Barrow had followed proper
procedures sanctioned by state law, the doctrine of
equity
required that he be
prevented from acquiring the Kenon home. Not only was the amount of money paid
for the property very small, but giving Barrow title to the property would impose a
terrible burden and hardship on the Kenons. Investor Barrow appealed, but the higher
court affirmed the trial judge’s decision. The Kenons kept their home and planned to
use some of the $1 1,000 raised in contributions to make long-needed repairs. The
state legislature also enacted a new law designed to prevent similar tax sales from
recurring. Barrow got nothing.
Using the Jurisdiction of State Courts in a National conflict: Local Judge
Referees Corporate Fight
Circuit Judge John Rudd put it frankly. He felt out of place in the middle of a
fight by two giant business conglomerates for control of Conoco, Inc.
“It does seem a little ludicrous for this little court, this little state, to be
involved in a matter of such magnitude.” In fact, he said, he felt imposed upon by
Conoco, which had turned to him to block its pending sale to Joseph E. Seagram and
Sons. Conocb’s Board of Directors has voted to merge with E.I. du Pont de Nemours
and Co.
Conoco, Inc., one of the nation’s largest oil companies, filed a case in a Florida
state trial court to try to stop Seagram’s Distillers from buying a majority of Conoco
stock, which would have given it control of the oil company, Conoco lawyers
claimed that a sale to Seagram’s would violate Florida law, which prohibits liquor
manufacturers and distributors from holding retail alcoholic beverage licenses. Kayo
Oil, a Conoco subsidiary, sells beer and wine at its Florida gas stations and might be
forced to give up its liquor licenses if Seagram’s purchased Conoco.
The trial judge concluded that a loss of 37 liquor licenses, which produced
about $1 million annually in liquor sales, would not be a big financial loss for giant
Conoco. He dismissed their suit against Seagram’s and implied that
Conoco simply
had used Florida law
to fend off Seagram’s attempt to buy Conoco.
Du pont later outbid Seagram’s for control of Conoco Oil.
21
back taxes from the property owner plus interest. The law stated that if the property
owner fails to pay the amount due for two succeeding years, Barrow could apply for a
tax deed giving him lawful ownership to the property.
After waiting three years instead of the minimum of two. Barrow paid required
fees of $102 to the clerk of the court and received a tax-deed giving him ownership of
the Kenon home. Barrow informed the Kenons that he owned their house and gave
them notice to buy the property from him or to move within a specified time. The
Kenons were unable to pay or to afford other housing and they refused to move.
Their plight made the national news and the Kenons began to receive financial
contributions. They also obtained free legal services from a local legal aid
organization. Barrow sued to assert his lawful right of ownership and to move the
Kenons from the house.
The trial court judge decided that although Barrow had followed proper
procedures sanctioned by state law, the doctrine of equity required that he be
prevented from acquiring the Kenon home. Not only was the amount of money paid
for the property very small, but giving Barrow title to the property would impose a
terrible burden and hardship on the Kenons. Investor Barrow appealed, but the higher
court affirmed the trial judge’s decision. The Kenons kept their home and planned to
use some of the $1 1,000 raised in contributions to make long-needed repairs. The
state legislature also enacted a new law designed to prevent similar tax sales from
recurring. Barrow got nothing.
Using the Jurisdiction of State Courts in a National conflict: Local Judge
Referees Corporate Fight
Circuit Judge John Rudd put it frankly. He felt out of place in the middle of a
fight by two giant business conglomerates for control of Conoco, Inc.
“It does seem a little ludicrous for this little court, this little state, to be
involved in a matter of such magnitude.” In fact, he said, he felt imposed upon by
Conoco, which had turned to him to block its pending sale to Joseph E. Seagram and
Sons. Conocb’s Board of Directors has voted to merge with E.I. du Pont de Nemours
and Co.
Conoco, Inc., one of the nation’s largest oil companies, filed a case in a Florida
state trial court to try to stop Seagram’s Distillers from buying a majority of Conoco
stock, which would have given it control of the oil company, Conoco lawyers
claimed that a sale to Seagram’s would violate Florida law, which prohibits liquor
manufacturers and distributors from holding retail alcoholic beverage licenses. Kayo
Oil, a Conoco subsidiary, sells beer and wine at its Florida gas stations and might be
forced to give up its liquor licenses if Seagram’s purchased Conoco.
The trial judge concluded that a loss of 37 liquor licenses, which produced
about $1 million annually in liquor sales, would not be a big financial loss for giant
Conoco. He dismissed their suit against Seagram’s and implied that Conoco simply
had used Florida law to fend off Seagram’s attempt to buy Conoco.
Du pont later outbid Seagram’s for control of Conoco Oil.
