Christiernson v. Hendrie & Bolthoff Mfg. & Supply Co.

128 N.W. 603, 26 S.D. 519, 1910 S.D. LEXIS 210
CourtSouth Dakota Supreme Court
DecidedNovember 26, 1910
StatusPublished
Cited by6 cases

This text of 128 N.W. 603 (Christiernson v. Hendrie & Bolthoff Mfg. & Supply Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christiernson v. Hendrie & Bolthoff Mfg. & Supply Co., 128 N.W. 603, 26 S.D. 519, 1910 S.D. LEXIS 210 (S.D. 1910).

Opinions

PIANEY, J.

This is an action for damages resulting from an alleged breach of warranty of machinery purchased by the plaintiff, a resident of this state, of the defendant, a foreign corporation. Service of the summons was made by delivery of a copy to one Everett W. Brown, as defendant’s “managing agent.” Defendant, appearing for that purpose only, moved the court below to vacate the service on the ground that Brown was not its “managing agent.” Denial of this motion is assigned as error.

The language of the pertinent portions of the statute relating to the service of summons in civil actions is as follows: “The summons shall be served by delivering a copy thereof as follows: (1) If the action be against a private corporation, to the president or other head of the corporation, secretary, cashier, treasurer, a director, or managing agent thereof.” Rev. Code Civ. Proc. § 110. This clause of the statute embraces foreign as well as domestic corporations. Foster v. Lumber Co., 5 S. D. 57, 58 N. W. 9, 23 L. R. A. 490, 49 Am. St. Rep. 859. It does not require that the person served shall be one having control and supervision of the corporation’s entire affairs. It is enough if he has supervision of its business in any particular locality, as one in charge of a lumber yard located in this state, owned by a foreign corporation, having its principal place of business in another state. Foster v. Lumber Co., supra. On the other hand, an attorney authorized by a foreign corporation to apply for patent to mining ground claimed [523]*523by it and to execute such papers as may be necessary for that purpose, is not, by virtue of such employment, “a managing agent” within the meaning of that term as used in the statute. Mars v. Mining Co., 7 S. D. 605, 65 N. W. 19. In other words, the agent’s authority and duties must embrace more than one transaction. As was stated in Mars v. Mining Co., supra: “The term ‘managing agent’ has no strict legal definition, and it is not easy to formulate or lay down any general rule that will govern in all cases. But the term was evidently intended to include only such an agent as should have the charge and management of the ordinary business of the corporation within the particular locality, and an agent invested with general powers, involving the exercise of judgment and discretion in the management of its ordinary business transacted, at least, within that locality.”. The phrase “managing agent” is one frequently found in statues relating to service of process on private corporations. The decisions in other jurisdictions, wherein it has been considered, contain irreconcilable conclusions. This principle, however, which is in harmony with the views heretofore expressed by this court, appears to have been very generally recognized: “A ‘managing agent’ must be some person vested by the corporation with general powers involving the exercise of judgment and discretion, as distinguished from an ordinary agent or attorney, who acts in an inferior capacity and under the direction and control of superior authority, both in regard to the extent of his duty and the manner of executing it.” 5 Words & Phrases, p. 4320. Every person, be he agent, attorney, employe, or servant, -authorized to act for and on behalf -of another, is clothed with some degree of discretion, while no person so authorized is wholly independent of the supervision and direction of his principal. Hence, the difficulty of drawing the line between one who is and one who is not vested with such powers as constitute a “managing”- agent within the meaning of the statute, and this difficulty is immeasurably enhanced when, as in this instance, the nature of the agency must be ascertained from ex parte affidavits, the most unsatisfactory of all forms of evidence.

[524]*524In the case at bar, the statement that the person served was the defendant’s “managing- ag-ent” was contained in the verified return1 on the summons and in plaintiff’s affidavit read in opposition to defendant’s motion. It was expressly denied in affidavits by the person served, defendant’s president and its attorney, read in support of the motion. If such statement be regarded as one of fact, a fact essential to the circuit court’s jurisdiction was not established, because its existence was positively denied by the only witnesses having personal knowledge of Brown’s relations to the corporation. And this is true whether the statement be regarded as one of fact or as a conclusion of law; the denial being as broad and effective in form as the allegation. But, whereas, the phrase “managing agent” has no well-defined meaning, either technical or in the ordinary and popular sense, the opinion of the persons making the statement was not conclusive on the hearing of this motion. While such statement was proper and necessary as a paid of the return, and may have been in itself sufficient to sustain the jurisdiction of the court until directly attacked, its truth was put in issue by the defendant’s motion and direct denial, and it became necessary to ascertain the extent of Brown’s duties and authority from -the facts, distinguished from conclusions, established by the affidavits upon which the ruling of the circuit court was based. It was stated in the affidavit of defendant’s president: “That on the 12th day of November,- 1906, the date of the pretended service of the summons herein and at all times since, and long prior thereto, the said defendant was and is a corporation organized and existing under and by virtue of the laws of the state of Colorado, having its principal place of business at the city of Denver in said state. That the said defendant at no time had any office, store, factory, warehouse, or place of business in the state of South Dakota. That the only business ever done by said defendant in the state of South Dakota was the taking of orders for the sale of its goods by and through its traveling salesman. That the said Everett W. Brown, upon whom the pretended service of the summons was made in this case, was never at any time the president, secretary, cashier, or a director, officer, [525]*525stockholder, managing agent or general agent of the defendant, but was merely a traveling salesman for 'defendant. * * * That said Everett W. Brown never had charge of any business of the defendant in the state of South Dakota, and did no business for this defendant in the state of South Dakota, except such business as is commonly done by a drummer or traveling salesman.” The only other evidence requiring attention is that found in the plaintiff’s affidavit. Of course, such portions of it as are stated on information and belief, or which relate to matters clearly not within the personal knowledge of the affiant, should be disregarded. Nor is it necessary to reproduce such portions as are in harmony with 'defendant's affidavits. The remaining portions are as follows: “The cause of action herein sued upon arose out of the purchase by .plaintiff from the defendant of one certain engine, which afterwards proved to be defective in violation of the warranty and guaranty of the defendant with reference thereto. That throughout the entire transaction the defendant corporation was represented by the said Brown.

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Cite This Page — Counsel Stack

Bluebook (online)
128 N.W. 603, 26 S.D. 519, 1910 S.D. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christiernson-v-hendrie-bolthoff-mfg-supply-co-sd-1910.