American Railway Express Co. v. Fleishman, Morris & Co.

141 S.E. 253, 149 Va. 200, 1928 Va. LEXIS 357
CourtSupreme Court of Virginia
DecidedJanuary 19, 1928
StatusPublished
Cited by14 cases

This text of 141 S.E. 253 (American Railway Express Co. v. Fleishman, Morris & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Railway Express Co. v. Fleishman, Morris & Co., 141 S.E. 253, 149 Va. 200, 1928 Va. LEXIS 357 (Va. 1928).

Opinion

Chichester, J.,

delivered the opinion of the court.

On February 26, 1918, Fleishman, Morris & Company, Incorporated, hereinafter called plaintiff, wholesale shoe dealers in the city of Richmond, delivered [204]*204certain goods of the aggregate value of $248.69 to the Southern Express Company, hereinafter called Southern, for shipment, and these goods were all lost en route by the carrier. Demand was made on the express company for indemnity but no settlement was made with the plaintiff. Whereupon plaintiff instituted proceedings by notice of motion in the Circuit Court of the city of Richmond on October 4, 1920, to compel settlement by the express company.

The sheriff of the city of Richmond executed this notice on October 4, 1920, by delivering a copy thereof with statement and affidavit attached to J. B. Hockaday, designating him in the return on the summons as the statutory agent in Virginia of the Southern Express Company, a corporation.

On November 1, 1920, after the notice of motion had been duly docketed, the Southern appeared specially by counsel and moved the court to quash the writ and the return thereon, upon various grounds set out in writing and filed. The trial court however, on December 10, 1920, overruled the motion to quash, and the Southern made no further appearance. On December 22nd, upon a trial on the merits, a jury duly empanelled to try the cause returned a verdict in favor of the plaintiff for $248.69 with interest and costs, and the court rendered judgment thereon. No appeal was taken from this judgment by the Southern.

Prior to the rendition of this judgment the Southern Express Company had turned over to the American Railway Express Company, hereinafter called the defendant, as its successor in business, for which business the latter company had paid with stock of the new company, all of its property in Virginia so that there was no property of the Southern subject to levy for the satisfaction of the plaintiff’s judgment in this State.

[205]*205On April 14, 1925, the plaintiff brought this action in debt upon this judgment, against the American, asserting liability against the new company for the debt of its predecessor, pursuant to the principle enunciated in American Ry. Exp. Co. v. Downing, 132 Va. 139, 111 S. E. 265; Am. Ry. & Exp. Co. v. Royster, 141 Va. 602, 126 S. E. 678.

Process was duly issued, upon which the sheriff of the city of Richmond made the following return: “Executed in the city of Richmond, Virginia, April 14, 1925, by delivering in duplicate a copy of within summons to B. O. James, the Secretary of the Commonwealth of Virginia, and as such Secretary of the Commonwealth, the statutory agent for the American Railway Express Company, a corporation. Place of residence and place of business of said B. O. James, being in the city of Richmond, Virginia. Fee of $2.50 paid the Secretary at time of service.”

On May 8, 1925, the American Railway Express Company appeared specially and moved the court to quash the writ and the return thereon, and to dismiss this action, upon the following grounds:

(1) That said service of said process and the return thereon is not valid and lawful.

(2) That the process and return thereon and the record in this action fail to show to the court that the Secretary of the Commonwealth has conformed to the requirements of the statute of the State of Virginia so as to make said alleged service valid and binding on the defendant company, a foreign corporation.

(3) That section 3846 of the Code of 1919 of the State of Virginia, as amended by the Acts of 1920, page 594, required that whenever lawful process against or notice to any such company shall be served as provided in the preceding section, the Secretary of the [206]*206Commonwealth shall forthwith mail a copy of such process or notice to the Company. That the process in this case and the return thereon and the record of this action nowhere shows that the Secretary of the Commonwealth has notified the American Railway Express Company in any proper and legal way, or that such officer has forthwith mailed a copy of said process to said defendant.

(4) That said defendant cannot be personally bound by any judgment entered in this action unless it shall expressly appear from the record in this case that the-Secretary of the Commonwealth of Virginia has forthwith mailed a copy of said process to the defendant, company, a foreign corporation, and that until it shall expressly appear in the record of this action, by a proper and legal return, that the Secretary of the Commonwealth has notified , said defendant or that he has forthwith mailed a copy of said process to said defendant before hearing had hereon, the same is not due process of law which is indispensable to a judgment in personam against said defendant company sought to be had in this action. Such judgment would be to deprive said defendant of its property without due process of law and to deny to it within the jurisdiction of this State the equal protection of the law contrary to Article 14 of the Constitution, of the United States and section 11 of the Constitution of Virginia, which are hereby expressly pleaded and the rights of the defendant company asserted thereunder.

The defendant also filed a demurrer to the plaintiff’s declaration and alleged as grounds — (1) That the declaration does not allege sufficient facts to show that plaintiff is liable to pay or be sued for the debts of the Southern Express Company, and particularly the judgment sued on in this action; and, (2) That, if [207]*207plaintiff had any cause of action against defendant, it should have proceeded in a court of equity by creditor’s bill as for the administration of a trust fund.

• The court overruled the motion to quash and the demurrer, and the defendant after pleading the general issue filed its grounds of defense, which in substance were that the judgment against the Southern is void because no valid process was served on it, and it was rendered without due process of law. That J. B. Hockaday was not statutory agent of the Southern when the process was served on him, and that this void judgment against the Southern Express Company could not be enforced against the present defendant.

That the American Railway Express Company was required by the Director General of Railroads to purchase and acquire the tangible property of the Southern used in its domestic business, but it was not, by this plan, made liable for the debts of the Southern; and to compel the American Railway Express Company to pay those debts would be to take the latter’s property without due process of law; and that the Southern was not insolvent at the time of said purchase and sale, but had and still has ample assets to pay all its liabilities. That there was no merger or consolidation of the Southern with the American, whereby the latter company could be charged with the debts of the Southern. That the American never assumed any of the obligations of the Southern, or agreed to pay them out of its own funds. That the American was not a party to the proceeding in which said judgment against the Southern was obtained, and had no notice of same. That the judgment of December 22, 1920, was void for lack of jurisdiction over the Southern, a nonresident corporation, which had ceased to do business in Virginia when the action against it was instituted.

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Bluebook (online)
141 S.E. 253, 149 Va. 200, 1928 Va. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-railway-express-co-v-fleishman-morris-co-va-1928.