UNITED STATES - GOVERNMENT CORPORATIONS - IMMUNITY FROM SUIT

The Emergency Relief and Construction Act, passed by Congress in 1932, authorized the Reconstruction Finance Corporation to create regional agricultural corporations, but did not expressly provide that such corporations might sue and be sued. However, Congress had made express provision to this effect with respect to the R. F. C. itself. The Regional Agricultural Credit Corporation of Sioux City, Iowa, was chartered by the R. F. C. in accordance with the statute. The plaintiff brought this action to recover damages for injuries to livestock alleged to have resulted from the negligence of the Regional Corporation in not providing proper care for the cattle delivered to it under a cattle feeding contract.

The Regional Corporation demurred on the ground that it was a governmental agency and therefore not subject to suit. Held, that the Regional Corporation was not immune from suit in this action and judgment should be rendered against it. Keifer & Keifer v. Reconstruction Finance Corporation, (U.S. 1939) 59 S. Ct. 516.