Bruhnke v. Golden West Wineries, Inc.

56 Cal. App. 2d 945
Appellate Division of the Superior Court of California·Decided November 30, 1942·No. Civ. A. No. 5281·Published

Opinion

KINCAID, J. pro tem.

Defendant and appellant appeals from the judgment and from the order denying defendant’s motion, under sections 473 and 473a, Code of Civil Procedure, to vacate and set aside the default and judgment entered against it. Said motion was made on the grounds, in part, that the default and default judgment were entered through inadvertence, surprise and excusable neglect of defendant and its counsel, and that the purported service of the summons and complaint herein on the defendant was not by personal service but was by delivering copies thereof to the Secretary of State, of the State of California, pursuant to sections 373, Civil Code, and 411, subdivision 1, Code of Civil Procedure. Further, that such substituted service of process was in fact no legal service whatsoever in that under said code sections, as amended by the 1941 Legislature, no reasonable means were therein provided for giving defendant notice of the action or of its pendency, and that said sections were therefore unconstitutional.

In attacking the constitutionality of said sections 373, Civil Code, and 411, subd. 1, Code of Civil Procedure, appellant contends that as now constituted they deny it the protection of due process of law as guaranteed by the Fourteenth Amendment of the Constitution of the United States, and article I, section 13 of the Constitution of the State of California, in that, (1) they are indefinite, uncertain and not subject to reasonable construction; (2) they confer a greater right upon a foreign corporation than upon a domestic corporation. With each of these contentions we agree.

Section 373, Civil Code, was originally enacted in 1931, and amended in 1933. As then constituted, it provided in part, in unnumbered paragraph 2 thereof, “If such designation has not leen filed with the Secretary of State, and if personal service of process against such domestic corporation can not be made with the exercise of due diligence . . . and the fact appears by affidavit to the satisfaction of the court or a judge thereof, such court . . . may make an order that service be made upon such corporation by delivering to the [947] Secretary of State . . . such process. ...” (Italics ours.) In 1941 section 373, Civil Code, was amended. The new unnumbered paragraph 5 of said section, as amended, changed the wording of former paragraph 2 above quoted by eliminating the portion italicized. By so doing, the Legislature has removed the necessity of an affidavit and order as a requirement for the service of process upon a corporation which has failed to designate an agent. The personal service of process referred to in such new paragraph refers only to those officers or agents named in the certificate so filed, and not to the officers or agents where no designation has been made. The new paragraph 2 limits service of process against a corporation which has not filed such certificate, to delivery to the Secretary of State. By virtue of the present wording of sections 373, Civil Code, and 411, subd. 1, Code of Civil Procedure, it would seem to establish the legislative intent to make service of process upon the Secretary of State mandatory as the only means of achieving legal service of such process upon a domestic corporation, unless the latter has filed a certificate with such Secretary of State designating a natural person residing within the state as its agent for the purpose of serving process. The specific exceptions to the foregoing are banks, trust and insurance companies, and corporations subject to the jurisdiction of the Railroad Commission.

Section 411, Code of Civil Procedure, was enacted in 1872 and from that date until 1931 provided that service of process upon a domestic corporation could be made by serving the president, vice-president, secretary and treasurer, etc. In 1931 it was amended to provide that service of process upon a domestic corporation could be made by serving the above named officers, or upon a person designated for service of process; if no such officer or agent could be found in the state after diligent search, then to the Secretary of State as provided in section 373, Civil Code. Section 411, subd. 1, Code of Civil Procedure, was amended in 1941 to read as follows: “If the suit is against a domestic corporation: To the president or other head of the corporation, a vice president, a secretary, an assistant secretary, general manager, or a person designated for service of process or authorized to receive service of process, if the corporation is an insurance company or is subject to the jurisdiction of the Railroad Commission; if such corporation is a bank or trust eom- ■, to any of the foregoing officers or agents thereof, or to [948] a cashier or an assistant cashier thereof; otherwise, pursuant to Section 373 of the Civil Code.”

The punctuation in the aforesaid amendment makes it difficult • of interpretation. The descriptive heading is “Domestic Corporations,” and specifies the officers upon whom service may be made and then apparently provides that said officers can be served only if said corporation is an insurance company, a bank or trust company, or is subject to the jurisdiction of the Railroad Commission. All other domestic corporations can be served with process only pursuant to section 373, Civil Code.

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Bruhnke v. Golden West Wineries, Inc., 56 Cal. App. 2d 945 (Cal. Ct. App. 1942).

56 Cal. App. 2d 945 (Bruhnke v. Golden West Wineries, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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