Bushel v. Commonwealth Insurance

15 Serg. & Rawle 173, 1827 Pa. LEXIS 17
CourtSupreme Court of Pennsylvania
DecidedMarch 30, 1827
StatusPublished
Cited by5 cases

This text of 15 Serg. & Rawle 173 (Bushel v. Commonwealth Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bushel v. Commonwealth Insurance, 15 Serg. & Rawle 173, 1827 Pa. LEXIS 17 (Pa. 1827).

Opinion

Rogers, J.

The plaintiffs have issued a foreign attachment, and have attached, in the .hands of Ralston and Lyman, as garnishees, certain property belonging to the defendants. On motion, the following rule has been entered. Rule on the plaintiffs to show cause of action, and why the attachment should not be dissolved, on the ground that.it has issued against a foreign corporation. Cause of action has been shown by the plaintiffs, so that the single question is, whether a foreign corporation is within the true intent and meaning of the laws regulating attachment, and particularly the act of 1705, entitled an act about attachments. In. order to sustain [176]*176the motion, it will be necessary for the defendants to show, that they are not embraced by the Words and spirit of that act, and in the commencement of the argument, I was immediately struck with the difficulty and confusion which arose from the plaintiffs’ being called on to show, that the foreign attachment was in this case properly issued. I felt at a loss to conceive why foreign corporations should be exempt from the beneficial provisions of those laws. The words of the act- appeared to be sufficiently comprehensive to embrace them, and they were in my apprehension within the mischief intended to be remedied. Corporations are artificial persons, 10 Mass. Rep. 92. They have the power to sue, and be sued, implead, and be impleaded, gra?>t or .receive, by their corporate name, and to do all other acts, as natural persons may. 1 Bl. Com. 475. The power of a corporation to sue a personal action is not restricted to corporations created by the laws of the commonwealih. 10 Mass. Rep. 91.

It is difficult to conceive, that if corporations are artificial persons,—if they can do all acts that natural persons may,—if they can sue within a foreign jurisdiction, why they should not also be liable to suit, in the same manner, and under the same regulations .as domestic corporations.- The reason why they have not been, in point of fact, more frequently sued, is given by Chief Justice Spencer, in 16 Johns. 7.

The process against a corporation, by the common lav/, must be served on its head or principal officer, within the jurisdiction of the sovereignty, where this artificial body exists. If the president of a -bank of another state were to come within this state, he would not represent the corporation here: his functions and his character would not accompany him, when he moved beyond the jurisdiction of the government under whose laws he derived his character. That this would be the case, when he was within the state on, business unconnected with the corporation, there can be no question; but where a corporation locates the president, or other officer within the state, for the express purpose of making contracts here, whether process served on him, would not' be sufficient, is a question which I shall not undertake to determine, because it does not necessarily arise. There is nothing, then, in the nature of a corporation to exempt it from suit. The difficulty arises from there being no person within the limits of the state on whom you can serve your process. .

With the multiplication of corporations, which has and is taking place to an almost indefinite extent, there has been a corresponding change in the law in relation to.them. There was a time, when it was supposed that no suit could 'be sustained against "them, unless upon an express contract, under the .seal of the corporation. It is now held, that they are liable in trespass, and in case, upon an implied contract. 7 Mass. 169. 7 Cranch, 299. 4 Serg. & Rawle, 16. 14 Johns. 118. This change in the law has arisen from a [177]*177change of circumstances, from that silent legislation by the people themselves, which is continually going on in a country such, as ours, the more wholesome, because it is’gradual, and wisely adapted to the peculiar situation, wants, and habits of our citizens.

The motion to dissolve the attachment, is made on the ground that the defendant is a foreign corporation, and, as such, is not within the act of 1705, nor liable to attachment by the custom, of London. The effect of sustaining the motion, will be to deny the plaintiffs, citizens of Pennsylvania, all remedy in this state, on a contract made here, and to deprive them of a special lien on the goods attached, it will be for the defendants, then, to show most clearly, that foreign corporations do not come within the intention of the laws regulating attachments.

When we consider the nurnber of corporations which now exist, their continual increase, the extent of their operations, the establishment of agents within this state for the express purpose of making contracts here, it is difficult to conceive a valid reason why they should be exempted from the operation of laws, which regulate the contracts of individuals and domestic corporations. They are not such favourites in courts of justice, as to claim an exemption on that ground.

The reason of the passage of the act of 1705, is set forth in the preamble to be, “That the laws of this government have/hitherto. been deficient in respect of attachments, so that the effects of persons absenting are not equally liable with those of persons dwelling upon the spot, to make restitution for debts contracted or owing within this province, to the great injury of the inhabitants thereof, and the encouragement of such unworthy persons, as frequently by absconding, make advantage of the defect aforesaid.”

In the third section, “ provided always, that no writ, of attachment. shall hereafter be granted against any person or persons’ effects, but such only as at the time of granting such writs are not resident or residing within this province, or are about to remain or make their escape out of the same, and shall refuse to give sufficient security to the complainant for his debt, or other demand, before he depart the said province.” -

It cannot, I think, be" reasonably doubted that-,corporations are within the words of the act. When the word person, is used in a statute, corporations as well as individuals are included.. As, where the inhabitants of a town are .bound to repair a bridge, or to pay taxes, corporations, as well as individuals, are liable.' 2 Inst. 697, 703. Cowp. 83. 5 Crunch, 61.

Are foreign corporations within the spirit of the act ? We are so to construe the act, as to suppress the mischief and advance the remedy. The mischief which the legislature intended to remedy was, that the effects .of persons, artificial or ,natural, who were absent, were not equally liable with those of persons, artificial or natural, dwelling upon the spot, to make restitution for debts con[178]*178fraeted, or owing within the proviriee. Foreign corporations and foreign individuals were placed on a better footing before the passage of the act, than domestic corporations or citizens of the state; for remedy whereof, the act in question was passed, enabling the court to compel an appearance by attachment of their effects within the state.

It may be- here proper to remark, that the act has been already construed to extend to persons, who have never been within the state, it has therefore the same application to corporations which are stationary, as to natural persons.

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Cite This Page — Counsel Stack

Bluebook (online)
15 Serg. & Rawle 173, 1827 Pa. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bushel-v-commonwealth-insurance-pa-1827.