Arkansas v. Texas

Invoking the original jurisdiction of this Court under Art. III, § 2, of the Constitution, Arkansas filed a motion for leave to file a complaint against Texas. The complaint alleged that the University of Arkansas entered into a contract with a Texas charitable corporation whereby the corporation agreed to contribute money to the construction of a floor in a new hospital in the Arkansas State Medical Center; that, though the corporation is willing to perform, Texas has filed suit in the Texas courts to enjoin it on the ground that under Texas law its funds must be expended for the benefit of residents of Texas; and that the University has let contracts for the construction of the hospital, now partially completed, but is without funds to proceed further unless Texas is enjoined from interfering. Held:

1. The corporation is not an indispensable party to the suit. Pp. 369–370.

2. The controversy is between two States, since the State of Arkansas is the real party in interest in the contract with the Texas corporation and the complaint alleges that Texas is unlawfully interfering with its performance. Pp. 370–371.

3. The question whether the corporation has authority to expend its funds in furtherance of the Arkansas project is a question of Texas law. Hence the present motion is continued, without any expression of opinion on the merits, until the litigation in the Texas courts has been concluded. P. 371.

Thomas J. Gentry, Attorney General of Arkansas, and E. J. Ball, Special Assistant to the Attorney General, argued the cause for complainant. With them on the brief was Kay Matthews, Assistant to the Attorney General.

William H. Holloway and Marietta McGregor Creel, Assistant Attorneys General of Texas, argued the cause for defendants. With them on the brief was John Ben Shepperd, Attorney General.