Brown v. Texarkana National Bank

889 F. Supp. 351, 1995 WL 357864
CourtDistrict Court, E.D. Arkansas
DecidedJune 12, 1995
DocketLR-C-94-583
StatusPublished
Cited by3 cases

This text of 889 F. Supp. 351 (Brown v. Texarkana National Bank) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Texarkana National Bank, 889 F. Supp. 351, 1995 WL 357864 (E.D. Ark. 1995).

Opinion

ORDER

ROY, District Judge.

The defendant removed this matter to this Court from the Chancery Court of Pulaski County. Pending at the time of the removal was defendant Texarkana National Bank’s (“the Bank”) Motion to Dismiss for improper venue. The bank renewed that motion once the case was before this Court. The motion must be addressed by this Court because if venue was not proper before the Pulaski County Chancery Court, then this Court has not “acquired” jurisdiction pursuant to the removal. “In a removed case the federal court has only such jurisdiction as was possessed by the State court from which the action was removed, and if the State court lacked jurisdiction by reason of improper venue under State statutes, the federal court acquires none on the removal.” Cobb v. National Lead Co., 215 F.Supp. 48, 51 (E.D.Ark.1963).

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The pertinent facts are well known by the parties, are largely not in dispute, and will not be recounted in this order. Suffice it to say that the Bank is now the Trustee for a family Trust and the plaintiffs are the beneficiaries. The plaintiffs believe that the Bank’s conservative investment policies and practices have so hampered the returns on the Trust’s assets that the Bank, as Trustee, is guilty of negligence and they have accordingly sued the Bank.

The plaintiffs filed in Pulaski County and effected service on the Bank’s designated agent by mailing the summons and petition to him in Miller County, Arkansas. 1 It *353 should be noted that the Bank’s principal place of business is- located in Texarkana, Bowie County, Texas. It is authorized to do business in Arkansas and has a registered agent in Texarkana, Miller County, Arkansas. 2 However, it owns no property in either Miller County or Pulaski County, Arkansas, and does not have a branch or other place of business in Pulaski County.

The Bank contends that it is unfair and illegal to require it to defend this lawsuit in Pulaski County. Arkansas venue statutes have long favored the convenience of the defendant over that of a plaintiff.

The underlying policy as to venue in this state is that every defendant should be liable to suit only in the county of his residence or place of business, unless for other policy reasons there are statutes to the contrary. This basic policy has always been considered as primary in construction of venue statutes, and properly so, unless other statutes are clearly in conflict with that basic policy.

Ozark Supply Co. v. Glass, 261 Ark. 750, 552 S.W.2d 1, 2 (1977) (internal citation omitted). See also Prairie Implement v. Circuit Court, 311 Ark. 200, 844 S.W.2d 299, 299 (1992).

To fix venue in Pulaski County, the plaintiffs rely on Arkansas’ so called “catch-all” venue statute, Ark.Code Ann. § 16-60-116(a) (1987), which reads in pertinent part as follows: “(a) Every other action may be brought in any county in which the defendant ... resides or is summoned.” Plaintiffs concede that no other venue statute applies and the Court must concur.

For example, A.C.A. § 16-60-104 concerns actions “against a corporation created by the laws of this state,” i.e., an Arkansas corporation. The Bank is not an Arkansas corporation. Section 16-60-105 concerns actions against an entity “engaged in business in this state which has or maintains more than one (1)office or place of business in this state.” Defendant has no place of business in this state.

Section 16-60-108 does provide that actions “against ... a foreign corporation, may be brought in any county in which there may be property of or debts owing to the defendant,” but does not control venue when, as is the case in the matter before the court, the foreign corporation is doing business in this state and has a registered agent for accepting process. To construe the statute otherwise “would render it unconstitutional under Power [Manufacturing Co. v. Saunders, 274 U.S. 490 [47 S.Ct. 678, 71 L.Ed. 1165] (1927) (reversing 169 Ark. 748, 276 S.W. 599).]” Cavette v. Ford Motor Credit Co., 260 Ark. 874, 545 S.W.2d 612 (1977). In any event, even if applying § 16-60-108 to the Bank were constitutional, venue would not properly lie in Pulaski County because the Bank has no property there.

The Court concludes that proper venue must be found under § 16-60-116(a) or not at all.

******

As stated above, § 16-60-116(a) states in pertinent part: “Every other action may be brought in any county in which the defendant ... resides or is summoned.” (emphasis added) The plaintiffs concede that the Bank does not reside in Pulaski County, arguing instead that the defendant was summoned there.

Specifically, they assert that the act of mailing the summons from Pulaski County to the registered agent in Texarkana constituted “summoning” the Bank in Pulaski County.

Based on Ark.Stat.Ann. § 16-58-119 (1987) and Ark.R.Civ.P. 4(e)(3), TNB [the Bank] was properly served with the Petition when counsel for the Beneficiaries *354 mailed the Petition from Pulaski County, by certified mail, return receipt requested to TNB’s registered agent. Therefore, TNB was “summoned” in Pulaski County, Arkansas.

Plaintiff’s brief at 8.

The Court finds this argument lacking for several reasons. First of all, there is no language in either Rule 4(e), Arkansas’ rule of procedure dealing with service, or A.C.A. § 16-58-119, a statute addressing the effecting of service on out of state defendants, suggesting that being “summoned” occurs when the summons is mailed rather than when it is received. Nowhere in Rule 4(e) or § 16-58-119 is any form of the word “summon” used as a verb; ie., it is never used to described the act of effecting service of process, nor is it ever used to describe the act of issuing a summons or of placing same in the mail. Instead, “summons” is always used as a noun to describe the paper(s) which accompany a complaint or petition warning the defendant of his duty to appear and answer in a timely manner. 3 The act of legally receiving the summons is always described as being “served.”

The Court concludes that Rule 4 and statute 16-58-119 offer little or no guidance as to what meaning to give the term “is summoned” except perhaps to suggest that the conspicuous absence of the term from the rule of procedure dealing with service and the statute addressing the effecting of service on out of state defendants weighs in favor of concluding that the term was meant to have the same meaning as “is served.”

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Cite This Page — Counsel Stack

Bluebook (online)
889 F. Supp. 351, 1995 WL 357864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-texarkana-national-bank-ared-1995.