Essgee Co. of China v. United States

Background

Two New York import companies and their officer and attorney faced a federal grand-jury investigation into alleged importation fraud. A subpoena duces tecum was served on the corporations’ officer, and the companies’ attorney gathered and delivered the listed books and papers to the courthouse. The District Attorney took custody of those documents. The officer and attorney later challenged the detention and asked for return of the records; the District Court denied their petitions and the companies sought review here.

Reasoning

The Court addressed whether the Fourth and Fifth Amendment protections that apply to individuals bar the Government from compelling corporate books. Relying on earlier decisions, the Court explained that corporations do not share the same personal immunity against compelled production. A lawful, suitably specific subpoena may require a corporation to produce its business records. An officer who holds corporate documents cannot refuse production on the ground that the papers might incriminate him personally. The Court also said it was not necessary that officers be called before the grand jury at the moment of production, and found no unlawful seizure in this record.

Real world impact

The decision means that businesses organized as corporations can be compelled to turn over corporate books and records when a properly drawn subpoena demands them in a federal investigation. Corporate officers cannot block that production by asserting their own personal privilege. The Court affirmed the District Court’s order denying return of the documents, distinguishing this lawful process from cases involving illegal seizures of records.