Carson v. Vance Trucking Lines, Inc.

245 F. Supp. 13, 1965 U.S. Dist. LEXIS 7738
CourtDistrict Court, W.D. South Carolina
DecidedSeptember 2, 1965
DocketCiv. A. 4291
StatusPublished
Cited by9 cases

This text of 245 F. Supp. 13 (Carson v. Vance Trucking Lines, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carson v. Vance Trucking Lines, Inc., 245 F. Supp. 13, 1965 U.S. Dist. LEXIS 7738 (southcarolinawd 1965).

Opinion

HEMPHILL, District Judge

Wrongful death action involving the diversity jurisdiction of this Court. Plaintiff is a citizen and resident of the State of Georgia, defendant, Forrester Trucking Company, Inc., hereinafter called “Forrester,” a South Carolina corporation with its principal place of business at Sumter South Carolina, defendant, Vance Trucking Lines, Inc., hereinafter called “Vance,” a North Carolina corporation with its principal place of business in North Carolina. Named also as defendant in the Complaint is one tractor-trailer unit consisting of 1-1961 Chevrolet Tractor serial # OC 813 B 118765, and one Evans Trailer serial # 11523.

Vance has answered the Complaint. Counsel for Forrester and the tractor-trailer unit gave notice of a special appearance for the purpose of moving to quash the purported service as to the tractor-trailer unit asserting the absence of any attachment or appropriate supplementary proceedings and to dismiss the action as to these defendants on the ground that venue does not lie as to them in the Western District of South Carolina.

It appears that the tractor-trailer unit was not attached and that counsel for plaintiff do not contest the motion as to the tractor-trailer.

It is, therefore, ordered that the aforesaid tractor-trailer unit be dismissed as a party to this action.

The basis claimed for establishing venue in the Western District is that under 28 U.S.C. § 1391(c):

A corporation may be sued in any judicial district in which it is incorporated or licensed to do business or is doing business, and such judicial district shall be regarded as the residence of such corporation for venue purposes.

Alternatively, it is argued that venue lies in the Western District by virtue of 28 U.S.C. § 1392(a) providing that:

Any civil action, not of a local nature, against defendants residing in different districts in the same State, may be brought in any of such districts.

At the hearing of this motion copies of Certificates of Public Convenience and Necessity issued by the South Carolina Public Service Commission held by For-rester were submitted. One certificate was for authority to operate between *15 certain designated points within the State and points and places in South Carolina for the purpose of hauling certain specified commodities and between points and places in South Carolina for hauling other commodities for designated companies. By another certificate presented, Forrester was licensed to furnish certain freight service from points and places in South Carolina to points and places outside of South Carolina, in interstate commerce.

As to Vance, an affidavit was submitted showing such corporation to be a common carrier licensed to transport commodities in interstate traffic to and between points and places along all states on the Eastern Seaboard from Florida to New York, including the State of South Carolina, and the Western District thereof. It further appeared from such affidavit that Mr. James L. Love, Esquire, of Greenville, South Carolina, was its agent for acceptance of process and that Vance was engaged in the business of hauling commodities in the State of South Carolina, including the Western District thereof, on the date of the accident involved in litigation and at all times since such date.

The authenticity of the certificates and the affidavit submitted and the correctness of the information shown therein were conceded by counsel for Forrester.

As to the position taken under 28 U.S.C. § 1391(c), it appears that the language of the Section is plain on its face. Counsel for Forrester, however, asks the Court to say in essence that only foreign corporations are intended when reference is made to those that are “licensed to do business” or are “doing business,” and that domestic corporations must be sued in the judicial district where they have their principal place of business, this constituting the district in which they are “incorporated” within the intendment of the statute.

The defect of this argument is that Congress might easily have provided language supporting the conclusion urged by Forrester, but it did not do so. Consequently, in the face of language which is unambiguous, a number of District Courts have held that a domestic corporation may be sued in any judicial district of the State of its incorporation under the language of Section 1391(c). Hintz v. Austenal Laboratories, 105 F. Supp. 187 (E.D.N.Y.1952); Garbe v. Humiston-Keeling & Co., 143 F.Supp. 776, 778-779 (E.D.Ill.1956), reversed on other grounds 242 F.2d 923 (7th Cir. 1957); Johnstone v. York County Gas Co., 193 F.Supp. 709, 711 (E.D.Pa.1961); Minter v. Fowler & Williams, Inc., 194 F.Supp. 660, 661 (E.D.Pa.1961); De George v. Mandata Poultry Co., 196 F.Supp. 192, 195 (E.D.Pa.1961). A domestic corporation is authorized under its charter to engage in business generally within the State of its incorporation. In the case of common carriers, their rights to transport goods are subject to further regulation, either by the state authority or the Interstate Commerce Commission, but in the case at hand it appears that Forrester is specifically licensed to engage in the business of transportation throughout South Carolina. Therefore, the Court concludes that inasmuch as Forrester is licensed to do business in the Western District, venue is properly laid in this district under Section 1391(c).

This point was argued in Vance Trucking Company, Inc. v. Canal Insurance Company, Forrester Trucking Company, Inc., 338 F.2d 943, decided by the Fourth Circuit on November 20, 1964, in an opinion by Chief Judge Sobeloff, and the Court upheld venue of Forrester in the Western District in an action for Declaratory Judgment seeking a determination of responsibility as between Vance and Forrester and the respective insurance carriers with respect to the accident resulting in this suit. There, as here, Forrester maintained that for venue purposes it is a resident of the Eastern District only because that is its principal place of business. While deciding the venue question under Section 1392(a), which Section shall be considered at a later point in this Order, Judge Sobeloff questioned the position of For- *16 rester on this point noting that “several courts have indicated that, for venue purposes, a corporation is a resident of all districts in a state in which it is incorporated or licensed to do business.” 338 F.2d at 944.

The cases cited in the opinion by Judge Sobeloff are those cited above in this Order, and this Court is persuaded that they reach the correct result. See also 1 Barron & Holtzoff, Federal Practice and Procedure, § 80, p. 386.

It is true that some District Courts have reached contrary results. See Wes-terman v. Grow, 198 F.Supp. 307, 308 (S. D.N.Y.1961); Sawyer v. Soaring Society of America, Inc., 180 F.Supp.

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245 F. Supp. 13, 1965 U.S. Dist. LEXIS 7738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carson-v-vance-trucking-lines-inc-southcarolinawd-1965.