Buckeye Boiler Co. v. Superior Court

458 P.2d 57, 71 Cal. 2d 893, 80 Cal. Rptr. 113, 1969 Cal. LEXIS 295
CourtCalifornia Supreme Court
DecidedAugust 28, 1969
DocketL. A. 29634
StatusPublished
Cited by170 cases

This text of 458 P.2d 57 (Buckeye Boiler Co. v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckeye Boiler Co. v. Superior Court, 458 P.2d 57, 71 Cal. 2d 893, 80 Cal. Rptr. 113, 1969 Cal. LEXIS 295 (Cal. 1969).

Opinion

PETERS, J.

Petitioner The Buckeye Boiler Company seeks a writ of mandate to compel the respondent superior *896 court to quash the service of summons upon it in an action f< personal injuries brought by real party in interest Waym; P. Flynt. Involved is the scope of jurisdiction of Californ courts over foreign corporations claimed to be “doing bus ness in this state. ’ ’ (Code Civ. Proc., § 411, subd. 2.)

The record shows that on or about March 15, 1967, whi acting in the course of his employment at the General Blectr Company’s plant in Ontario, California, plaintiff was injure by the explosion of a.pressure tank containing an unidentifie liquid and being used in connection with a system for tb spraying of liquid under air pressure. The tank, it is allege* bore a metal nameplate with the legend: “The Buckey Boiler Company, Dayton, Ohio. Built 1960 — 150 lbs, max mum; ’ ’ and was, according to the record, being put to a us for which it was intended when manufactured. While recen ing treatment in a California hospital for his injuries resul! ing from the explosion, plaintiff it is claimed suffered a fal after which he was stricken with left hemiplegia, that is, tota paralysis of his entire left side.

Plaintiff sued Buckeye, alleging inter alia negligent manu facture of the pressure vessel, manufacturer’s strict liability and breach of warranty. By amended complaint, plaintif joined as defendants the doctor by whom and the hospital ir which he was treated for his injuries [hereinafter “medica defendants”], alleging that the fall he suffered resulted iron their negligence, and further alleging that he is in doubl whether his hemiplegic condition resulted from the explosion the negligence of the doctor and hospital, or both.

Service of process upon Buckeye was effected by personal delivery to the Secretary of State, pursuant to section 411, subdivision 2, of the Code of Civil Procedure. Buckeye appeared specially (Code Civ. Proc., §416.3) and moved to quash the service of summons on the ground that it was not doing business in the State of California and therefore could not properly be served with process pursuant to section 411, subdivision 2. The motion was denied. 1

The medical defendants consist of a California corporation and an individual who is a California resident, both of whom allegedly cannot be sued in any other state on plaintiff’s *897 asserted causes of action. All witnesses of the accident reside in California.

Buckeye is a foreign corporation, organized and existing inder the laws of the State of Ohio, with its principal place if business and principal offices in Dayton, Ohio. It manufactures pressure vessels which have numerous and varied ises. Sales are solicited outside Ohio in interstate commerce >oth directly and through independent manufacturers ’ representatives who sell Buckeye’s products on a commission basis in Ohio, Kentucky, Michigan, Indiana, Pennsylvania, New lersey, New York, Connecticut, Maryland, Delaware, North Carolina, South Carolina, West Virginia, Virginia, Georgia, Florida, and Alabama. Buckeye does not advertise its products.

Buckeye has no agent, office, sales representative, exclusive agency or exclusive sales outlet, warehouse, stock of merchandise, property, or bank account in California. It does not sell on consignment to, and has no commission agreement with, any person or entity in California. However, for a period of five years prior to plaintiff’s injury, and continuing to the present, Buckeye has sold pressure tanks to Cochin Manufacturing Company, an Ohio corporation, which maintains a manufacturing plant in South San Francisco, California. Cochin orders some tanks directly from that plant; the purchases of other tanks are negotiated through its Ohio office. Buckeye ships the tanks (priced at $55 to $60 each) directly to the Cochin plant in South San Francisco. Annual gross sales to Cochin during the last two or three years have ranged from $25,000 to $35,000. Cochin manufactures hydraulic automobile lifts for service stations it incorporates the tanks purchased from Buckeye into these lifts and then sells the lifts to purchasers throughout California and in other states. Cochin apparently does not resell Buckeye’s tanks for other uses.

Buckeye claims that other than sales to Cochin it has had “no contact with anyone in the State of California” and that it has not sold any of its products to the General Electric Company between January 1960 and the present. However, Buckeye admits that it has no records of its sales prior to 1962.

Buckeye ships to the Cochin plant in South San Francisco tanks identified in its invoices as “Hydraulic Oil Tanks” which are generally 14 inches in diameter and 75 inches in height. Apparently the exploding tank which allegedly injured plaintiff was approximately 10 inches in diameter and *898 16 inches in height. There is no evidence in the record befor us, other than the evidence of size and general type of use, t indicate what significant differences there may be between th tanks purchased by Cochin and the tank which alleged! injured plaintiff. 2

Plaintiff is unable to establish where his employer pui chased the exploding tank. The chief of the purchasinj department at General Electric’s Ontario, California, plan testified that the company has no record of purchasing th tank in question, or any other item, from Buckeye. He als testified that the department destroys records more than fivi years old. However, he stated that it was the department’ policy to purchase equipment, whenever possible, from sup pliers located within the State of California.

Section 411, subdivision 2, of the Code of Civil Proce dure authorizes service of process on foreign corporations “do ing business in this state. ’ ’ This section exerts the full powei of the state, consistent with the due process clause, to subject foreign corporations to the jurisdiction of California courts. (Fisher Governor Co. v. Superior Court, 53 Cal.2d 222, 224 [1 Cal.Rptr. 1, 347 P.2d 1].) Thus, in a case such as the present one where a foreign corporation contends that service! of process upon it is not authorized by section 411, we must determine “whether jurisdiction may constitutionally be assumed.” (Id., at p. 225.)

A defendant not literally “present” in the forum state may not be required to defend itself in that state’s tribunals unless the “quality and nature of the defendant’s activity” in relation to the particular cause of action makes it fair to do so. (Hanson v. Denckla, 357 U.S. 235, 253 [2 L.Ed.2d 1283, 1297, 78 S.Ct. 1228]; McGee v. International Life Ins. Co., 355 U.S. 220 [2 L.Ed.2d 223, 78 S.Ct. 199]; Henry R. John & Son, Inc. v. Superior Court, 49 Cal.2d 855, 860 [323 P.2d 437

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Bluebook (online)
458 P.2d 57, 71 Cal. 2d 893, 80 Cal. Rptr. 113, 1969 Cal. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckeye-boiler-co-v-superior-court-cal-1969.