Atchison, Topeka and Santa Fe Railway Co. v. Ortiz

361 S.W.2d 113, 50 Tenn. App. 317, 1962 Tenn. App. LEXIS 152
CourtCourt of Appeals of Tennessee
DecidedMarch 23, 1962
StatusPublished
Cited by7 cases

This text of 361 S.W.2d 113 (Atchison, Topeka and Santa Fe Railway Co. v. Ortiz) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchison, Topeka and Santa Fe Railway Co. v. Ortiz, 361 S.W.2d 113, 50 Tenn. App. 317, 1962 Tenn. App. LEXIS 152 (Tenn. Ct. App. 1962).

Opinions

AVERT, P. J. (W. S.)

The parties are referred to in the briefs as “Appellants” and “Appellees” but from a court of law they are more generally referred to in this Court as Plaintiffs-In-Error and Defendants-In-Error.

The case comes to this Court from the law court of Shelby County, Division II, the Honorable John W. Wilson, Judge. It is brought to this Court by the original defendants in the lower Court, and unless these companies are referred to individually by the specific name, they will be referred to herein with the same status they had in the lower court, “defendants”, and the plaintiffs in the lower court, unless referred to by name or by partnership name, will be referred to as “plaintiffs”.

[320]*320All parties to this suit are non-residents of the State of Tennessee and the defendants are not domesticated corporate entities in Tennessee. The declaration alleges that the defendants are non-resident corporations of the State of Tennessee, “having an office and agency in Shelby County, Tennessee, located in the Shrine Building, Memphis, Tennessee, and said corporations are engaged in doing business in Shelby County, Tennessee.” It alleges the defendants at all times necessary in connection with the matters herein contained are common carriers for hire of both freight and passengers.

The suit is for damages alleged to have been the result of fire to 88 bales of cotton marked “RTCO (1517-Cot-ton)” weighing 43,749 lbs. and 9 bales of cotton marked “PIMA” weighing 5,314 lbs. Except where necessary to designate the different classes of the cotton, it will be referred to hereinafter as “the 97 bales of cotton involved.”

The declaration is in three counts. It alleges that defendants had and maintained an office and agency in Shelby County, Tennessee, in the Shrine Building and engaged in doing business in Shelby County, Tennessee.

Count No. One alleges on or about May 28, 1959, the plaintiffs shipped the 97 bales of cotton by bill of lading No. 3032 after delivering same to the defendants at Las Cruces, New Mexico to be shipped to the plaintiffs at Houston, Texas, and it alleges failure of delivery in accord with contract or bill of lading resulting in $16,-295.85 compensatory damages plus interest.

The second count of the declaration adopts all material averments of the first count and alleges violation of and liability under Section 20, paragraph 11, Title 49 United [321]*321States Code, which, is known as the Carmack amendment to the Interstate Commerce Act. The damage sought to he recovered in accord with count two is the same as set out in count one.

Count three adopts the relevant allegations in said count one and alleges that at a point near Brownwood, Texas the defendants negligently and carelessly operated and controlled their trains, engines etc, and the cotton caught fire and that they were negligent in failing to extinguish the fire, and is a general charge of negligence in the handling of the cotton while in possession of said carriers, and avers the same amount as damage set forth in count one.

Summons was served by the Sheriff of Shelby County on the defendants “by reading writ to Mr. Michael M. Benya as District Agent, and leaving a copy of the bill with him.”

Pleas in abatement were first filed by both the defendants. This plea attacks the jurisdiction of the Court on the theory that the defendants being non-resident corporate entities of the State of Tennessee, are not doing business in the State as to bring them within the jurisdiction of the State Courts. It alleges that the summons is invalid and void for reasons set out in the plea which is considered proper to aver in order to show that the defendants are not subject to process in this State. It, in short, avers that it has no office in Tennessee nor agent in Tennessee nor does any business in Tennessee and that the alleged agent, M. M. Benya on whom the process was served, is not an agent of the defendants which makes them subject to process and suit in this State under our [322]*322statutes. Reasons alleged for that averment are condensed as follows:

“That M. M. Benya is merely a soliciting agent of the defendants; * * * that his duties are traveling and soliciting shippers and patrons to route freight and, on some occasions, to purchase tickets for passage via the lines of The Atchison, Topeka and Santa Fe Railway Company and Gulf, Colorado and Santa Fe Railway Company and other affiliated companies which comprise The Atchison, Topeka and Santa Fe Railway System # * ®. That the said M. M. Benya makes no contracts for the defendants * * * hut does on occasions issue an exchange bill of lading, which is especially marked as such, such exchange bills of lading being issued only when a shipment is physically present in other states on rails of * * *”

The defendants have no property of any character in Tennessee nor in Memphis, Shelby County:

“* * * except the office furniture and equipment located in the office of The Santa Fe System at 870 Shrine Building, Memphis, Tennessee; * * * that the lease for the office space in room 870 in said Shrine Building was signed on behalf of The Atchi-son, Topeka and Santa Fe Railway Company by officials of said company located in Chicago, Illinois; that the payroll for the said M. M. Benya and his clerk is made up in St. Louis, Missouri, and salary checks are issued to the said two employees from Topeka, Kansas, said salary checks being issued by The Atchison, Topeka and Santa Fe Railway Company ; that only two employees work in or out of the solicitation office maintained in room 870, Shrine [323]*323Building, Memphis, Tennessee, such employees being the said M. M. Benya and his clerk; that as an incident to solicitation of freight and passenger business, as aforesaid, the said M. M. Benya and his clerk write letters to patrons and prospective patrons on stationery bearing the trade name, The Atchison, Topeka and Santa Fe Railway System or bearing the name, The Atchison, Topeka and Santa Fe Railway Company; that as a further incident to solicitation, M. M. Benya or his clerk will write letters to various offices of The Atchison, Topeka and Santa Fe Railway Company or to its affiliated companies, tracing shipments and passing on to shippers the information obtained as a result of such inquiry; * * * that neither of said companies transact any business in Shelby County, Tennessee, other than that of mere solicitations, as above set out * * *”

This plea then avers that the service is void in the following manner:

“That the service of process as attempted in this cause is in violation of the due process and the commerce clauses of the Constitution of the United States in that personal service may not be obtained on a mere solicitation agent under such circumstances and that such attempted service unreasonably interferes with the maintenance of proper and adequate transportation service at reasonable cost.”

The plea then prays the judgment of the Court thereon. It is properly signed by all counsel and sworn to as v&-quired by the laws of the State of Tennessee.

[324]*324The plaintiffs filed a demurrer to that plea in abatement and the averments of that demurrer, such as are necessary, are as follows:

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Bluebook (online)
361 S.W.2d 113, 50 Tenn. App. 317, 1962 Tenn. App. LEXIS 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchison-topeka-and-santa-fe-railway-co-v-ortiz-tennctapp-1962.