American Extension School of Law v. Ragland

112 S.W.2d 110, 232 Mo. App. 763, 1938 Mo. App. LEXIS 110
CourtMissouri Court of Appeals
DecidedJanuary 10, 1938
StatusPublished
Cited by2 cases

This text of 112 S.W.2d 110 (American Extension School of Law v. Ragland) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Extension School of Law v. Ragland, 112 S.W.2d 110, 232 Mo. App. 763, 1938 Mo. App. LEXIS 110 (Mo. Ct. App. 1938).

Opinion

REYNOLDS, J.

This suit was instituted by the plaintiff, a foreign corporation, against the defendant before a justice of the peace in Cole county, Missouri, to recover a judgment for a balance of $78, alleged to be due on a.promissory note executed to it by'the defendant.

The note sued upon was filed with the justice; and, with it, the plaintiff also filed a written contract entered into between it and the de *764 fendant, alleged to recite the consideration to the defendant upon which said note was executed. .

The defendant appeared before the justice and filed what is denominated in the record a plea of abatement, in which he alleges that the plaintiff was not entitled to maintain the action because, at the time of the institution of such action, the plaintiff was not licensed to do business in the State of Missouri and is not now licensed so to do and does not have the power to sue or be sued in the State of Missouri.

The justice overruled such plea or motion; and the defendant thereupon filed an answer and counterclaim, in which answer and counterclaim he denies any liability to the plaintiff becáuse the plaintiff is not a corporation licensed by the laws of Missouri to do business in this State. He further sets up1 a failure of consideration, by reason of the failure of the plaintiff to comply with the terms of the contract entered into by it with him, in consideration of which contract the note was given, to which answer and counterclain the plaintiff filed the following reply:

“Comes now the plaintiff and for its reply to the answer of defendant herein, states that it is, and was, at all times hereinafter stated, a corporation organized and existing under and by virtue of the laws of the State of Illinois, with its principal place of business located at the City of Chicago; in said State; that it is not engaged in business in the State of Missouri as defined in sections 4596-4598, Revised Statutes of Missouri, 1929, and that it is and was, in this and other transactions, engaged in interstate commerce and therefore does not come within the purview of the aforesaid sections.

“Plaintiff further states that under and in accordance with the terms of the contract entered into between said plaintiff and defendant herein under date of the 20th day of May, 1933, it agreed to furnish certain lessons, instructions and text books as provided therein, but denies that it agreed to furnish a ‘full law library’ as alleged by defendant. ’ ’

The reply in substance further alleges a willingness on the part of the plaintiff to comply with such contract but alleges that the defendant breached the contract and failed to perform its terms upon his part and thereby made it impossible for performance on the plaintiff’s part. It further makes general denial of the allegations contained in said answer and counterclaim.

The record does not set out the judgment rendered by the justice, but does set out that an appeal was taken from the judgment of the justice to the Circuit Court of Cole County, in which latter court it appears that the defendant’s plea in abatement or motion to dismiss was taken up on May 28, 1936, and sustained on the ground that.the plaintiff corporation was not licensed to do and transact business within the State of Missouri and the appeal was dismissed, and that, *765 after an unsuccessful motion for rehearing by the 'plaintiff, an appeal was taken by it to this court. It appears from the bill of exceptions filed that no evidence was offered or introduced on'the trial of the cause.

The plaintiff’s motion for rehearing is based upon alleged error on the part of the trial court in sustaining the plea in abatement for the reason that the plaintiff, a corporation organized and existing under and by virtue of the laws of the State of Delaware with its principal place of business located at the city of Chicago in the State of Illinois, is not required to comply with the provisions of Sections 4596-4598, Revised Statutes of Missouri, 1929, requiring the registration and licensing of foreign corporations doing business within the State of Missouri in order to maintain suits and sue in the courts of this State if said plaintiff corporation is not doing business within the State of Missouri within the purview of said sections; that the business of said plaintiff corporation is purely interstate in character and governed by the Constitution of the United States, article 1, chapter 8, clause 3, and the laws of the United States relative thereto exclusively; and that to subject said plaintiff corporation to the requirements of said Sections 4596-4598, Revised- Statutes of Missouri, 1929, would constitute illegal restraint on interstate commerce, contrary to the federal constitution and laws.

The plaintiff assigns error as follows: That the court erred in sustaining the plea, in abatement for the reason- that said' plaintiff, a corporation organized and existing by virtue of the laws of the State of Delaware with its principal place of business located at the city of Chicago in the State of Illinois, is not required to comply with the provisions of Sections 4596-4598, Revised-Statutes of Missouri, 1929, requiring the registration and licensing of foreign corporations doing business within the State of' Missouri in order 'to maintain suits and sue in the courts of this State, if said plaintiff corporation is not doing business within the State of Missouri within the purview of said sections; that the business of said plaintiff corporation in the State of Missouri is purely interstate in character and is governed by the- Constitution of the United States, article 1, chapter 8, clause 3, and the laws of the United States relative thereto exclusively; and that to subject said plaintiff corporation to the requirements of said sections would constitute an illegal restraint on interstate commerce, contrary to the federal constitution and laws.

In support of such assignment, it cites numerous authorities, among which is the case of International Text-Book Company v. Gillespie, 229 Mo. 397, 129 S. W. 922, decided by the Supreme Court of this State, which holds that such sections are unconstitutional and void insofar as they apply to and affect a foreign corporation engaged solely in interstate commerce; that such a corporation so engaged is not subject to State regulation but is governed by the Con *766 stitution of the United States and the laws thereof; and that, where such a corporation has a valid cause of action against a citizen of this State, it may sue such citizen thereon in the courts of this State, notwithstanding the provisions of said sections to the contrary. The case of the International Text-Book Company v. Gillespie, supra,, is based upon a decision by the Supreme Court of the United States in the case of International Text-Book Company v. Pigg, 217 U. S. 91, involving a like state of facts and the same provisions of law.

The plaintiff contends that the facts in this case are the same as in the case of International Text-Book Company v. Gillespie, supra,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Swallows v. Holden
723 S.W.2d 576 (Missouri Court of Appeals, 1987)
Pitts v. Pitts
388 S.W.2d 337 (Supreme Court of Missouri, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
112 S.W.2d 110, 232 Mo. App. 763, 1938 Mo. App. LEXIS 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-extension-school-of-law-v-ragland-moctapp-1938.