Cargill v. Mark's Credit Clothing Co.

29 F. Supp. 725, 43 U.S.P.Q. (BNA) 78, 1939 U.S. Dist. LEXIS 2122
CourtDistrict Court, S.D. New York
DecidedJune 9, 1939
StatusPublished
Cited by3 cases

This text of 29 F. Supp. 725 (Cargill v. Mark's Credit Clothing Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cargill v. Mark's Credit Clothing Co., 29 F. Supp. 725, 43 U.S.P.Q. (BNA) 78, 1939 U.S. Dist. LEXIS 2122 (S.D.N.Y. 1939).

Opinion

LEIBELL, District Judge.

Defendant appears specially and moves for an order quashing the service of the summons in this action which is based on an alleged infringement of plaintiff’s copyright. It is not claimed that any act of infringement took place in this District.

The defendant corporation is a citizen and resident of Illinois, having been incorporated under the laws of Illinois and maintaining its principal office and five stores in the City of Chicago, where it retails men’s, women’s, children’s, misses’ and infants’ ready-to-wear clothing. Its vice-president, Abraham Wax, is a resident of Chicago, Illinois, and his place of business is with the defendant in Chicago. On March 20, 1938, he was in the Borough of Manhattan, City of New York, transacting some business for defendant as its “buyer” of men’s and boys’ clothing and while here he was served with the summons in this action.

The venue of a suit for infringement of copyright is fixed by Section 35 of the Copyright Act, 17 U.S.C.A. •§ 35, which provides : “ § 35. District in which actions may be brought. Civil actions, suits, or proceedings arising under this title may be instituted in the district of which the defendant or his agent is an inhabitant, or in which he may be found. (Mar. 4, 1909, c. 320, § 35, 35 Stat. 1084.)”

In Lumiere v. Mae Edna Wilder, Inc., 261 U.S. 174, 43 S.Ct. 312, 313, 67 L.Ed. 596, it was contended by plaintiff that jurisdiction was obtained over a foreign corporation because its president was an “agent” within the meaning of the statute and was personally “found” in New York and served with process. He was not there on any business of the corporation at the time of service. The corporation itself was not “found” within the district. The service was held defective.

The question presented for decision on the present motion is the very question that was expressly not decided in Lumiere v. Mae Edna Wilder, Inc., supra, where Justice Brandéis wrote: “Whether, under the [727]*727Copyright Act, service upon an agent would he effective as upon one ‘found,’ if it appeared that the agent when served was transacting some business for defendant within the jurisdiction, but was there only temporarily, and had his residence and place of business elsewhere, is a question which we need not decide in this case.”

In Haskell v. Aluminum Co. of America, D.C., 14 F.2d 864, 867, Judge Brewster discusses a number of Supreme Court cases defining the term “found”, as used in reference to a foreign corporation’s presence in a state, so as to be amenable to process served in that state. He states the principle to be derived therefrom as follows:

“Under these decisions, a foreign corporation might ‘transact business’ in the usual acceptation of the words, and still not ‘be found’ in the state where the business was transacted. Whether it was within the state, so as to be amenable to process therein, depended upon the character and extent of the business that was carried on; the general rule being that the nature and character of the business must be such ‘as to warrant the inference that the corporation has subjected itself to the local jurisdiction, and is by its duly authorized officers or agents present within the state or district where service is attempted.’ People’s Tobacco Co. v. American Tobacco Co., 246 U.S. 79, 38 S.Ct. 233, 62 L.Ed. 587, Ann.Cas.1918C, 537.
* =!•• *
“In both the Alexander [St. Louis Southwestern Railway Co. of Texas v. Alexander, 227 U.S. 218, 33 S.Ct. 245, 57 L.Ed. 486, Ann.Cas.1915B, 77] and the American Tobacco Co. Cases, supra, the courts observed that the question must be decided in each case and upon the particular facts of that case. See Washington-Virginia Railway Co. v. Real Estate Trust Co., 238 U.S. 185, 34 S.Ct. 818, 59 L.Ed. 1262.”

In James-Dickinson Farm Mortg. Co. v. Harry, 273 U.S. 119, 122, 47 S.Ct. 308, 309, 71 L.Ed. 569, Mr. Justice Brandéis wrote: “By these pleadings it was admitted that the residence and' principal place of business of the corporation was in Missouri ; that it had never been a resident of Illinois; that Dickinson, its president, was in Illinois on business of the corporation at the time of the service; but that it had not engaged in, or carried on, business within the state. Jurisdiction over a corporation of one state cannot be acquired in another state or district in which it has no place of business and is not found, merely by serving process upon an executive officer temporarily therein, even if he is there on business of the company. Philadelphia & Reading Ry. Co. v. McKibbin, 243 U.S. 264, 37 S.Ct. 280, 61 L.Ed. 710; Rosenberg Bros. & Co. v. Curtis Brown Co., 260 U.S. 516, 43 S.Ct. 170, 67 L.Ed. 372; Bank of America v. Whitney Central National Bank, 261 U.S. 171, 43 S.Ct. 311, 67 L.Ed. 594; Lumiere v. Mae Edna Wilder, 261 U.S. 174, 177, 43 S.Ct. 312, 67 L.Ed. 596.”

Mr. Wax, vice-president of this defendant, makes affidavit as follows:

“Affiant further states that he has no residence in the City of New York; that the defendant corporation has no branch office, bank account, telephone, telephone listing, or office of any kind or nature in the City of New York or elsewhere in the Southern district of New York or anywhere outside the City of Chicago; that all business purchases and payments are made from the main office of defendant corporation at 6409 S. Halsted Street, Chicago, Ill.; that all orders for merchandise placed by any commission buying office for the defendant corporation are followed up from the main office in Chicago, and confirmed direct from the Chicago office direct to the manufacturers from whom the purchases were made. The defendant corporation has no contractorial relationship whatever with any buying office in New York, and the buying offices through whom they buy merchandise obtain their commissions from the manufacturers whose goods the defendant corporation purchases through them. The buying office receives no consideration whatever from the defendant corporation.
“ * * * that the only place where the name of the defendant corporation does appear is inside of the office of the Associated Budget Retailers of America, Inc. at 450 Seventh Avenue, N.Y.C., where it appears on one of the doors to a cubicle, having been placed there by the buying office for the convenience of manufacturers’ salesmen who come there to sell merchandise, and merely to indicate that the Mark’s Credit Clothing Co. Inc. of Chicago, the defendant herein, is one of their accounts;
* * *

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Snyder v. Eastern Auto Distributors, Inc.
239 F. Supp. 240 (W.D. South Carolina, 1965)
Geo-Physical Maps v. Toycraft Corporation
162 F. Supp. 141 (S.D. New York, 1958)
Deutsch v. Times Pub. Corporation
33 F. Supp. 957 (S.D. New York, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
29 F. Supp. 725, 43 U.S.P.Q. (BNA) 78, 1939 U.S. Dist. LEXIS 2122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cargill-v-marks-credit-clothing-co-nysd-1939.