Bard v. Bemidji Bottle Gas Co.

23 F.R.D. 299, 2 Fed. R. Serv. 2d 8, 1958 U.S. Dist. LEXIS 4453
CourtDistrict Court, D. Minnesota
DecidedOctober 9, 1958
DocketNos. 4-58 Civ. 37, 4-58 Civ. 38
StatusPublished
Cited by7 cases

This text of 23 F.R.D. 299 (Bard v. Bemidji Bottle Gas Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bard v. Bemidji Bottle Gas Co., 23 F.R.D. 299, 2 Fed. R. Serv. 2d 8, 1958 U.S. Dist. LEXIS 4453 (mnd 1958).

Opinion

NORDBYE, Chief Judge.

These are companion cases which came before the undersigned on September 8, 1958, on a motion to quash the service on the third-party defendant Sid Richardson Gasoline Company.

On October 1, 1956, the two plaintiffs were staying in the Lake Region Motel at Longville, Minnesota. An explosion occurred allegedly through the leakage of bottled gas. The bottle gas equipment had been installed by Bemidji Bottle Gas Co., Inc. (hereinafter called Bemidji), and by Solar Gas Co. (hereinafter called Solar). Likewise, these companies supplied the bottle gas to the Motel. Mrs. Miller died as a result of the. injuries incurred in the explosion, and the trustee for the heirs and next-of-kin, Felzner, has brought suit here, there being a diversity of citizenship. Bard, an Indiana resident, was not killed but sustained injuries for which he sues here.

Bemidji joined the motel owners as third-party defendants and obtained proper service upon them. Bemidji also has joined the Sid Richardson Gasoline Co. (hereinafter called Richardson), a Texas corporation, as an additional third-party defendant. Richardson supplied the liquified petroleum gas to Be-midji, and Bemidji asserts upon information and belief that the liquified petroleum gas was not properly odorized as required under Minnesota law. It further asserts that the non-odorized gas was the sole, or at least a contributing cause, of the explosion. After an abortive attempt to serve Richardson through H. L. Schmidley, a former representative of Richardson in Minnesota, Bemidji attempted to obtain service by serving the Secretary of the State of Minnesota as an authorized representative of Richardson under M.S.A. § 303.13. Bemidji also attempted to serve Richardson through Richardson’s present representative in Minnesota, B. E. Patton. The summons, however, was not served upon Patton personally; it was left at Patton’s home with his wife.

Richardson’s motion to quash service is the sole question before the Court at this time. Rule 4, Subsections (d)(1) and (d)(7), Federal Rules of Civil Procedure, 28 U.S.C.A., provide that service may be had:

“Upon a domestic or foreign corporation or upon a partnership or other unincorporated association which is subject to suit under a common name, by delivering a copy of the summons and of the complaint to an officer, a managing or general agent, or to any other agent authorized by appointment or by law to receive service of process and, if the agent is one authorized by statute to receive service and the statute so requires, by also mailing a copy to the deféndant.”
“Upon a defendant of any class referred to in paragraph (1) or (3) of this subdivision of this rule, it is also sufficient if the summons and complaint are served in the manner prescribed by any statute of the United States or in the manner prescribed by the law of the state in which the service is made for the service of summons or other like process upon any such defendant in an action brought in the courts of general jurisdiction of that state.”

The Minnesota rule, Rule 4.03(c), provides that summons may be served:

“Upon a domestic or foreign corporation, by delivering a copy to an officer or managing agent, or to any other agent authorized expressly or impliedly or designated by statute to receive service of summons, and if the agent is one authorized or designated under statute to receive service any statutory provision for the manner of such service shall be complied with. * * * ”

[301]*301In addition, M.S.A. § 303.13, a provision enacted in 1957, states:

“(3) If a foreign corporation makes a contract with a resident of Minnesota to be performed in whole or in part by either party in Minnesota, or if such foreign corporation commits a tort in whole or in part in Minnesota against a resident of Minnesota, such acts shall be deemed to be doing business in Minnesota by the foreign corporation and shall be deemed equivalent to the appointment by the foreign corporation of the secretary of the State of Minnesota and his successors to be its true and lawful attorney upon whom may be served all lawful process in any actions or proceedings against the foreign corporation arising from or growing out of such contract or tort. • # # # »

Service was proper in this case either if M.S.A. § 303.13 applies, or if proper service was obtained upon Richardson under Minnesota Rule 4.03(c), or Federal Rule 4(d)(3). First, as to M.S. A. § 303.13, service upon the Secretary of State is sufficient (1) in an action growing out of a contract between Bemidji and Richardson if that contract was to be performed in whole or in part by either party in Minnesota, or (2) if Richardson committed a tort in whole or in part in Minnesota against a Minnesota resident.

As to a contract between Richardson and Bemidji, it is evident that no part of the contract was performed in Minnesota. Patton is a resident representative of Richardson, but he has no authority to enter contracts in Minnesota on behalf of Richardson. Patton’s chief function is acquainting dealers with the Richardson product, promoting good will, and procuring acceptable dealers in addition' to those already using the Richardson product. Whether or not Richardson’s activities and those of its representative, Patton, constitute “doing business” in Minnesota in the usual sense is another question, but Patton obviously has no authority to bind Richardson. Nor is delivery made in Minnesota under the contract. The liquified petroleum is shipped F. O. B. Tulsa, and Bemidji’s payment on billings is sent to Fort Worth, Texas, rather than to Patton in Minnesota. Thus, no part of the contract is performed in Minnesota.

Whether or not Richardson committed a tort in whole or in part in Minnesota, against a Minnesota resident, is somewhat more difficult to decide. The answer, however, is equally as obvious on the tort question as on the contract question once all facets are considered.

In the first place, any tort which took place in Minnesota was committed against either Mrs. Miller or Bard. No tort was committed against Minnesota residents because Bemidji and Solar have not been damaged. They will be damaged, if at all, only when their liability toward Miller and Bard is determined. At that time Bemidji may be entitled to either contribution or indemnity. The Restatement, Restitution, Sec. 93, states:

“Where a person has supplied to another a chattel which becausé of the supplier’s negligence or other fault is dangerously defective for the use for which it is supplied and both have become liable in tort to a third person injured by such use, the supplier is under a duty to indemnify the other for expenditures properly made in discharge of the claim of the third person, if the other used or disposed of the chattel in reliance upon the suppliers care and if, as between the two, such reliance was justifiable.”

See also Lunderberg v. Bierman, 1954, 241 Minn. 349, 63 N.W.2d 355, 43 A.L.R. 2d 865.

Secondly,' although Richardson’s alleged liability may grow out of a tort liability to Miller and Bard, any liability over to Bemidji is not an action in tort. [302]*30242 C.J.S. Indemnity § 20 at p. 594, states:

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Cite This Page — Counsel Stack

Bluebook (online)
23 F.R.D. 299, 2 Fed. R. Serv. 2d 8, 1958 U.S. Dist. LEXIS 4453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bard-v-bemidji-bottle-gas-co-mnd-1958.