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In the case of Ortega Company v. Triay, Receiver of Jacksonville Traction Company (1922), the United States Supreme Court dealt with a dispute over a contract for the delivery and sale of cedar blocks to be used in paving streets. The Ortega Company had entered into an agreement with the Jacksonville Traction Company, which later went bankrupt before fulfilling its payment obligations under this contract. A receiver was appointed by a Florida court to handle matters related to bankruptcy proceedings. The main issue at hand was whether or not this state-appointed receiver could be sued in federal courts without prior permission from the appointing state court. The Supreme Court ruled that such permission was indeed necessary as it would prevent interference between federal and state jurisdictions, thus maintaining harmony within dual judicial systems operating concurrently within U.S borders. This decision upheld principles of comity among different jurisdictions while also emphasizing respect for ongoing bankruptcy proceedings managed by receivers under supervision from their respective appointing courts.
The dissenting opinion in the case of Ortega Company v. Triay, Receiver of Jacksonville Traction Company argued that the majority's decision was inconsistent with previous rulings and principles established by the court. The dissenting justices contended that a receiver appointed by a federal court should not be allowed to sue in state courts without first obtaining permission from the appointing court. They believed this principle was well-established and had been consistently upheld in prior cases, making it an important part of jurisprudence related to receiverships. Furthermore, they disagreed with the majority's interpretation of Florida law regarding foreign corporations doing business within its borders; they maintained that such companies were subject to local laws even if their principal place of business was elsewhere. In their view, allowing a receiver to bypass these requirements undermined both federal authority and states' rights.