Continental Convention & Show Management, Inc. v. American Broadcasting Co.

41 N.W.2d 263, 230 Minn. 217, 1950 Minn. LEXIS 607
CourtSupreme Court of Minnesota
DecidedFebruary 10, 1950
DocketNo. 35,066
StatusPublished
Cited by6 cases

This text of 41 N.W.2d 263 (Continental Convention & Show Management, Inc. v. American Broadcasting Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Convention & Show Management, Inc. v. American Broadcasting Co., 41 N.W.2d 263, 230 Minn. 217, 1950 Minn. LEXIS 607 (Mich. 1950).

Opinion

Thomas Gallagher, Justice.

This is an appeal from an order granting the motion of defendant Paul F. Beich Candy Company, a foreign corporation, to quash service of process herein, on the ground that Louis Murray, upon whom such service was made for defendant, was not at the time thereof defendant’s agent within the state, within the contemplation of M. S. A. 548.08. The motion and order are based upon affidavits submitted in conjunction therewith.

Defendant corporation is organized under the laws of Illinois, with its principal office in Bloomington, Illinois. It does not maintain. a warehouse, office, or other specifically designated location here. It is engaged in the confectionery business, and since November 1940 has sold its products in Minnesota and other northwest states through Louis Murray, its salesman, whose territory included Minneapolis.

Throughout his employment, Murray has been the sole representative of defendant in the Minneapolis territory. His work consisted of calling on and selling wholesale jobbers here. His purchase orders were mailed to Bloomington, where they were filled and where the merchandise was shipped by defendant to the customers involved. In addition to selling, at times he made adjustments with customers and gave them credit for losses sustained in connection [219]*219with purchases of defendant’s products. He did not make collections or deliver merchandise.

In September 1948, plaintiff staged a national food show at the Minneapolis auditorium. In conjunction therewith, defendant sponsored an audience participation radio program. Commencing August 25, 1948, Murray took part in making arrangements with reference thereto on behalf of defendant in Minneapolis. He conferred with plaintiff’s president and represented to him that he was to work with the latter on behalf of defendant in promoting defendant’s candy and to assist with that part of the radio program which, he stated, was to be sponsored by defendant. He advised plaintiff’s president that he was to report to defendant the progress made in connection with such program, to give a resumé of what might be expected, and from time to time to furnish defendant all information with reference thereto. He engaged in several conferences with reference to publicity therefor, and at defendant’s expense purchased a quantity of food show tickets and distributed them to defendant’s customers, all in accordance with instructions from defendant. The events out of which this litigation arose occurred during such program, but are not otherwise in issue here.

In February 1949, Murray returned to Bloomington because of illness requiring hospital treatment. He informed defendant’s sales manager that he could no longer continue his employment, and was advised by defendant’s manager that such employment would be officially terminated as of March 1, T949, but that as a severance allowance he would receive his regular commission on all sales in his territory during the month of March 1949. His unemployment compensation, social security, and income tax payments and deductions were suspended as of March 1, 1949.

He was given permission by his employer to return to Minneapolis to pick up his automobile and while there to call upon old customers and obtain such orders from them as might increase the final amount which would be due him from the month of March.

[220]*220On March 12 he returned to Minneapolis, and up to and including March 18 called upon his customers, advised them of the termination of his employment, and procured orders from them for defendant’s merchandise. On March 16, while in Minneapolis thus engaged, the summons and complaint in this action were served upon him as agent for defendant.

The question for determination here is whether at the time of such service defendant was engaged in business in this state, and whether Murray was its proper agent for the service of process upon it here.

M. S. A. 548.08 provides:

“If the defendant be a foreign corporation the summons may be served by delivering a copy to any of its officers or agents within the state, * *

Thereunder, in order to maintain an action against a foreign corporation here, it must be established that it is present in the state, and service of process upon it must be made upon its agent, officer, or representative here acting in such capacity, so that notice to him will be deemed notice to the corporation. Atkinson v. United States Operating Co. 129 Minn. 232, 152 N. W. 410; Dahl v. Collette, 202 Minn. 544, 279 N. W. 561.

It has been frequently held that the presence here of the representative of a foreign corporation for the sole purpose of soliciting orders will not support a finding that such corporation is present here so as to subject it to the service of process. Lattu v. Ontario & Minnesota Power Co. Ltd. 131 Minn. 162, 154 N. W. 950; Abramovich v. Continental Can Co. Inc. 166 Minn. 151, 207 N. W. 201; Erving v. C. & N. W. Ry. Co. 171 Minn. 87, 214 N. W. 12; Gloeser v. Dollar Steamship Lines, Inc. 192 Minn. 376, 256 N. W. 666; Minnesota Commercial Men’s Assn. v. Benn, 261 U. S. 140, 43 S. Ct. 293, 67 L. ed. 573.

While it is established that an agent’s presence here for the solicitation of orders alone is insufficient to establish the presence of a foreign corporation here, the rule “readily yields to slight [221]*221additions.” Dahl v. Collette, supra, where we stated (202 Minn. 550, 551, 279 N. W. 566) :

“* * * This is not to say that solicitation, regularly and systematically conducted, within the jurisdiction is without import in deciding whether the corporation is doing business therein. Its simple meaning is that solicitation alone without other corroborating circumstances is not of sufficient strength to sustain the inference that the corporation is present. * * * Solicitation aided by further manifestations of corporate presence no one of which is singly capable of carrying the weight of the inference will warrant the conclusion that it is doing business here.”

There, we sustained a finding of corporate presence here based upon these factors, to wit: (1) Eegular and systematic solicitation of orders by the agent; (2) substantial volume of products flowing into the state in constant and continuous stream as a result thereof; (3) compromise and adjustment of disputes with customers by the soliciting agent; and (4) maintenance of display and demonstration rooms at conventions attended by present and prospective customers to build up good will.

In the instant case, substantially the same factors are present. There is no conflict in the affidavits regarding the activities of Murray, defendant’s agent here, on its behalf. They indicate that he regularly solicited orders for it here; that such solicitation resulted in a continuous flow of its products into the state in a substantial volume; that he made adjustments of disputes with local customers; and that he promoted good will for defendant in making all arrangements for its participation in the national food show at the Minneapolis auditorium. While the latter function was performed on only one occasion, it is persuasive in determining that defendant was present here to an extent that exceeded mere solicitation of orders, and that he was subject to service of process here by service upon the agent involved.

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Bluebook (online)
41 N.W.2d 263, 230 Minn. 217, 1950 Minn. LEXIS 607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-convention-show-management-inc-v-american-broadcasting-co-minn-1950.