American Surety Co. v. District Court of Third Judicial District

254 P. 515, 43 Idaho 589, 1927 Ida. LEXIS 210
CourtIdaho Supreme Court
DecidedFebruary 16, 1927
StatusPublished
Cited by8 cases

This text of 254 P. 515 (American Surety Co. v. District Court of Third Judicial District) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Surety Co. v. District Court of Third Judicial District, 254 P. 515, 43 Idaho 589, 1927 Ida. LEXIS 210 (Idaho 1927).

Opinions

*593 VARIAN, Commissioner.

Original application for a writ of prohibition. Plaintiff seeks to restrain the defendants from proceeding with a trial of a certain action pending in the district court of the third judicial district, wherein Idaho Farm Development Company, a Delaware corporation, is plaintiff, and Idaho Construction Company, an Idaho corporation, and the American Surety Company of New York, a New York corporation, are defendants, and from making any order in said cause except to dismiss or strike said action from the calendar, upon the ground that defendants have no jurisdiction of said action.

The complaint was filed in the district court of the fifth judicial district, for Bannock county, May 4,' 1925, and summons was served upon the Commissioner of Finance as the statutory agent of plaintiff herein. By mistake, the said commissioner returned the copies of the complaint and summons to counsel for plaintiff in that action. Said attorney thereupon orally, and by letter dated June 23, 1925, communicated with counsel for the American Surety Company of New York, advising him of the filing and service of' complaint and process in the said action. On August 15, 1925, plaintiff here, defendant in the district court, filed a motion to dismiss the action in said district court, together *594 with an affidavit in support thereof. Thereafter, on the same date, said, surety company also served and filed its motion for change of place of trial from Bannock county to Ada county, upon the ground that the corporations defendant in said actions did not reside in Bannock county, and at the time of the commencement of this action were corporations having their principal places of business in Ada county, Idaho. Omitting the title, the motion commences as follows:

“Comes now the defendant, American Surety Company of New York, and without waiving its motion to dismiss and in the event the court holds it has jurisdiction of this cause, and moves the court that an order be made changing the place of trial,” etc.

Affidavit in support of this motion was served and filed, together with a formal demand for change of place of trial. Omitting the title, the demand reads as follows, viz.:

“The defendant, American Surety Company of New York, without waiving its motion to dismiss and in the event the court holds that it has jurisdiction of this cause, does hereby demand,” etc.

The motion to dismiss was argued and submitted to the district judge presiding in Bannock county, who, on December 10, 1925, without formally passing on the motion to dismiss, entered an order transferring the cause to Ada county, in the third judicial district, for trial. On May 15, 1926, the plaintiff here moved the Ada county district court to dismiss the action for want of jurisdiction. The motion was denied, and plaintiff brought this proceeding.

The application for the writ is supported by affidavit. The verified* return of defendants admits the facts set forth in the affidavit and alleges the filing of demurrer by Idaho Construction Company, on December 8, 1925, the granting of the motion for change of place of trial on December 4, 1925, and that prior to August 15, 1925, counsel for plaintiff in the district court granted counsel for American Surety Company of New York several oral extensions of time in which to plead to the complaint in the district *595 court, and that on July 22, 1925, at the request of counsel for said surety company, a written stipulation was signed by plaintiff’s counsel in the district court of Bannock county, extending the time in which the surety company would be required to appear and plead to the complaint to and including August 15, 1925. A duplicate of this stipulation so signed was delivered to counsel for the surety company, but does not appear to have been filed with the clerk of the district court.

It is contended by plaintiff that the district court of Bannock county had no jurisdiction of the action brought against the American Surety Company of New Tork, and could make no order except that of dismissal.

C. S., see. 6664, as amended by Sess. Laws 1923, c. 79, p. 91, reads:

“Section 6664 (4123). Other Actions: Venue Determined by Residence. In all other cases the action must be tried in the county in which the defendants, or some of them, reside, at the commencement of the action; or, if none of the defendants reside in the state, or, if residing in this state, the county in which they reside is unknown to the plaintiff, the same may be tried in any county which the plaintiff may designate in his complaint; and if the defendant is about to depart from the state, such action may be tried in any county where either of the parties reside, or service is had, subject, however, to the power of the court to change the place of trial, as provided in this code; Provided, That all actions against life or fire insurance companies, suit or action may be commenced and tried in the county where the death occurred or the loss was sustained; and Provided, further, That in- all actions against any corporation organized under the latos of the state of Idaho, suit or action shall be commenced and tried in any county of this state where the defendant has its principal place of business or in the county in which the cause of action arose.”

The new matter added to C. S., see. 6664, by the amendment of 1923 is italicized.

*596 Plaintiff argues that this court has held that a foreign corporation, by complying with the statutes of Idaho relative to such corporations doing business therein, thereby acquires the same rights, as to venue in actions brought against it, as domestic corporations; that the foregoing statute therefore applies to plaintiff in the matter of venue, and it could not be sued except in Ada county, where its principal place of business in Idaho is situate, or in Twin Falls county, where the cause of action arose. (Webster v. Oregon Short Line Ry., 6 Ida. 312, 55 Pac. 661; Boyer v. Northern Pacific Ry. Co., 8 Ida. 74, 66 Pac. 826, 70 L. R. A. 691; Smith v. Inter-Mountain Auto Co., 25 Ida. 212, 136 Pac. 1125.) These decisions were all handed down prior to the 1923 amendment to C. S., sec. 6664. They hold, in effect, that the statute being silent as to venue in suits and actions against corporations, either a domestic or a foreign corporation doing business in Idaho and complying with the statutes relative to foreign corporations doing business in this state may be sued in any county in the state. The act relied upon provides that all suits or actions against domestic corporations “shall be commenced and tried” in any county in which said corporation has its principal place of business, or the cause of action arose. This amendment assumes to change the venue as to suits or actions against domestic corporations only. No mention is made of foreign corporations doing business in this state. It is clear that the legislature did not intend to interfere with the rule then obtaining as to the venue of suits or actions against foreign corporations doing business in this state that had complied with the laws thereof.

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Bluebook (online)
254 P. 515, 43 Idaho 589, 1927 Ida. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-surety-co-v-district-court-of-third-judicial-district-idaho-1927.