Angldile Computing Scale Co. v. Gladstone

164 A.D. 370, 149 N.Y.S. 807, 1914 N.Y. App. Div. LEXIS 7785
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 11, 1914
StatusPublished
Cited by13 cases

This text of 164 A.D. 370 (Angldile Computing Scale Co. v. Gladstone) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angldile Computing Scale Co. v. Gladstone, 164 A.D. 370, 149 N.Y.S. 807, 1914 N.Y. App. Div. LEXIS 7785 (N.Y. Ct. App. 1914).

Opinion

Woodward, J.:

The complaint .alleged that the plaintiff was a foreign corporation organized under the laws of the State of Indiana, and in the absence of further allegations it would be presumed that it was doing business within the State of its creation, which fact appears from the evidence in the case. It then alleges the making and delivery of an order by the defendants [371]*371for a set of scales to be delivered free on board cars at Elkhart, Ind., and the acceptance of such order and delivery of the scales to the defendants, and a failure on their part to pay for the same according to the terms of the contract.

The answer admits the incorporation of the plaintiff under the laws of the State of Indiana; admits that the defendants were copartners, and then, without denying any of the allegations of the complaint and without setting up any distinct separate defense, proceeds to allege that the defendants were engaged in business as retailers of meat; that they needed scales, and that “ the order signed by the defendants did not constitute all of the contract between these parties,” and that the order was signed by them upon the representation of the plaintiff’s agent that the scales were accurate and would fill the requirements of the laws of the State of New York, and that the defendants need not accept or pay for the same if they failed to meet the requirements. Then they allege that the scales came to hand; that they were properly set up and adjusted, but that they failed to meet the requirements of the law, were condemned by the local sealer of weights and measures, and that the same were thereupon returned to the plaintiff. This is followed by a declaration that the “defendants are not indebted to plaintiff in the sum of ninety dollars or any other sum, but that the plaintiff is justly indebted to them in the sum of $11.38, being the amount paid at the time of the making of the order and the said freight.”

This is the substance of the pleading. Upon the trial the plaintiff put in evidence the written contract between the parties, showed the delivery of the scales, and that there had been no payment upon the same other than the original payment of ten dollars, and rested. The defendant asked the plaintiff’s counsel to admit that the latter was a foreign stock corporation, for the purpose of bringing it within the language of section 15 of the General Corporation Law, and upon counsel refusing to make the admission, defendants offered in evidence a certificate of incorporation from the Secretary of State of Indiana, and this was admitted over the objection and exception of the plaintiff. With this certificate in evidence showing that the plaintiff was a foreign stock corporation, [372]*372defendants moved for a nonsuit on the ground that the contract was made within this State, and that the complaint did not allege compliance with the provisions of section 15 of the General Corporation Law. The learned trial court does not appear to have been convinced that the law required a dismissal of the complaint, but predicating its ruling upon the fact that plaintiff’s counsel failed to show authorities for the contrary, granted the motion. The plaintiff appeals from the judgment of nonsuit.

It would seem as though this kind of a defense had been attempted often enough so that the rules would be fairly familiar to the profession. Section 1779 of the Code of Civil Procedure provides that “An action may be maintained by a foreign corporation, in like manner and subject to the same regulations as where the action is brought by a domestic corporation, except as otherwise specially prescribed by law.” Section 1775 provides that “In an action brought by or against a corporation, the complaint must aver that the plaintiff, or the defendant, as the case may be, is a corporation; must state whether it is a domestic corporation or a foreign corporation; and, if the latter, the State, country, or government, by or under whose laws it was created.”

Thus far the plaintiff in the present action seems.to be wholly within the law; there is ho suggestion that a foreign corporation doing business within its own State may not come into the State of New York and enforce payment of a claim arising out of a sale of goods within this State. Indeed, it is specially provided in section 1780 that 'an action may be maintained against a foreign corporation by another foreign corporation, or by a non-resident, in one of the ^following cases only: “ * * * 3. Where the cause of action arose within the State,” thus affirmatively indicating that it is not the policy of this State to deny to suitors the protection of the law in any case where the cause of action arose within this State, unless the corporation has in some manner forfeited the right to such protection. There can be no question that a foreign corporation has a right to sell goods in the State of New York; that a manufacturing corporation in Indiana has a right to send its agent into the State of New York, there to make contracts for [373]*373the sale and delivery of its goods, and this right to make such contracts carries with it, by necessary implication, the right to enforce such contracts in the courts of this State, in the absence of lawful limitations upon that right.

Section 15 of the General Corporation Law (Consol. Laws, chap. 23; Laws of 1909, chap. 28) has nothing to do with a foreign corporation doing business under its charter in its home State, even though it reaches out and makes contracts within the State of New York. The “doing business ” referred to in the statute is the exercising of its corporate franchises; the maintaining of a place of business within the State in the sense ihat the corporations organized and doing business under the laws of this State maintain such places of business. By section 180 of the Tax Law (Consol. Laws, chap. 60 [Laws of 1909, chap. 62], as amd. by Laws of 1911, chap. 91) the State of New York imposes an organization tax of one-twentieth of one per centum upon the amount of capital stock which the corporation is authorized to have, and a like tax upon any subsequent increase, and by section 182 “for the privilege of doing business or exercising its corporate franchises in this State every corporation, joint-stock company or association, doing business in this State, shall pay to the State Treasurer annually, in advance, an annual tax to be computed,” etc. These provisions both relate to domestic corporations, and section 182 also relates to foreign corporations, and the provisions of section 181 of the Tax Law (as amd. by Laws of 1910, chap. 340), relating to foreign corporations, provides for a license fee “for the privilege of exercising its corporate franchises or carrying on its business in such corporate or organized capacity in this Státe, ” etc., and section 15 of the General Corporation Law is to be read and understood in connection with these provisions declaratory of the corporate policy of the State. We have our own corporations subject to certain regulations, involving franchise taxes, etc., and to adequately protect our own corporations it is necessary to make compensating regulations and limitations upon those which are organized under the laws of other States and come in here to do business in competition with our own corporations. But the language, “doing business,” as used in our statutes regulating domestic corporations, is not to have a dif[374]*374ferent meaning as applied to foreign corporations.

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Bluebook (online)
164 A.D. 370, 149 N.Y.S. 807, 1914 N.Y. App. Div. LEXIS 7785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angldile-computing-scale-co-v-gladstone-nyappdiv-1914.