County Court of Brooke County v. United States Fidelity & Guaranty Co.

105 S.E. 787, 87 W. Va. 504, 1921 W. Va. LEXIS 7
West Virginia Supreme Court·Decided January 25, 1921·Published·Cited by 6 cases

Opinion

LyNoh, Judge :

These two cases are actions upon the same instrument — a joint and several penal bond with collateral condition, executed by defendants, Mack Manufacturing Company and United States Fidelity & Guaranty Company of Baltimore, Maryland, as principal and surety, respectively, to guarantee faithful performance by them of a contract to furnish paving bricks for the permanent improvement of designated public roads in Brooke County. In both cases the county court of Brooke County is plaintiff, [507] and the purpose of each is to enforce the penalty of the bond. A determination of the four questions certified by the circuit court of Hancock County in case Ho. 130 will be decisive of the two certified by the circuit court of Brooke County in case Ho. 122, the latter being identical in form' and substance with two of the former.

According to the certificate of the circuit court of Hancock County, the questions certified in case Ho. 130 are:

“(il) That, as appears from said returns (sheriff’s returns showing services of summons), there was no valid service of either said original summons or of the said summons to answer' an amended declaration, which would give to the said circuit court jurisdiction to render any judgment against the said defendant.
(2) That plaintiff is entitled to entry of judgment.
(3) That there is a fatal variance between the declaration and the amended declaration and the instrument sued on.
(4) That the plaintiff has no cause of action against the defendant, because said suit should have been brought in the name of the State of West Virginia on the bond read upon craver of oyer.”

Questions 3 and 4 are the ones common to both cases. The first question certified challenges the sufficiency of the returns showing service of the original summons and that to answer the amended declaration. As they are substantially similar, a discussion of" the latter will suffice. It reads:

“In the absence from Hancock County, West Virginia, of S. 6. Gaillard, the attorney in fact of the within named corporation, I executed the within and hereto annexed writ within Hancock County, West Virginia, this 22nd day of February, 1919, as to the said Mack Manufacturing Company, a corporation, by delivering a true copy thereof -to Emil Stephens, being then and there the bookkeeper or clerk of said corporation, and being then and there in charge of the principal office of business of said corporation, in the City of Hew Cumberland in said Hancock County, West Virginia, and said Emil Stephens being a resident of the City of Hew Cumberland in said county and state at the time of said service 5 there being, when such service was made, no attorney of record and fact or other person in [508] said county upon whom service might be had for and on behalf of said corporation;” which return the proper officer duly signed.
The chief ground of challenge of the sufficiency of the return is that Emil Stephens, upon’whom service was had, was, as shown by the return, a mere “bookkeeper or clerk,” and not one of the persons designated by law to receive service on behalf of a corporation.
The closing sentence of section 6, ch. 41, Code 1918, provides that “service of process, when person or property is not to be taken into custody, or it is not otherwise specially provided, shall be subject to the regulations contained in the several sections from 32 to 39, inclusive, of chapter 50 of this Code.”

Section 34 of chapter 50 authorizes service of process against a corporation' (1) upon the president, cashier, treasurer, or chief officer thereof; (2) if there be no such officer, or if he be absent, upon any officer, director, trustee or agent of the corporation, at its principal office or place of business, or in any county in which a director or other officer, or any agent of said corporation may reside; (3) upon any officer or agent of said corporation in the county in which the property, land, or other thing in controversy may be, or in any county where the cause of action arose.

Is a bookkeeper or clerk of a corporation, in charge of its principal office or place of business in the county where service was had, an “agent” within the meaning of the section referred to? It is the evident purpose of the statute to require that service of process against a corporation be had upon its president or other high official where that is reasonably possible. B'ut it makes express provision for a situation where service upon such an officer is impossible. The term, “any agent,” is of wide application- and embraces within its scope many classes of persons. N. & W. R. Co. v. Cottrell, 83 Va., 512; 4 Fletcher, Cyclopedia Corporations, § 3000. The purpose of the Legislature undoubtedly was to obviate or avoid many of the difficulties and obstructions which frequently attend service upon corporations. As to the possible extent of the term “agent,” and whether it includes all minor, employees of every grade, we express no opinion at this time. There may be some who, under [509] certain circumstances, could not properly be classed as agents within the meaning of the statute. But the return here in question discloses an additional and important 'characteristic of the bookkeeper or clerk-upon whom service was had, namely, that he was “then and there in charge of the principal office of business of said corporation, in the City of New Cumberland in said Hancock County.” One who is thus left in charge and control of the principal office of a corporation is thereby vested by the company with certain responsibilities and duties, and within certain limits represents the company. At least, his position as bookkeeper or clerk, coupled with the fact that he was in charge of the principal office of the corporation in that county, render him, in our opinion, an- “agent” within the meaning of section 34, ch. 50, Code 1918. The purpose of the service of process is to give notice to the corporation of the pendency of an action against it, and the evident intent of the Legislature in enacting the statute was to broaden the list of those acting for and in behalf of the corporation through ■Whom such notice could be imparted to it. Hence it would seem to follow that the test of agency within the meaning of the statute is whether the nature of the agent’s employment is such that it may reasonably be supposed that notice will through him reach the corporation. 4 Fletcher, Cyelopodia Corporations, § 3000. A bookkeeper or clerk in charge of the principal office of a corporation in a particular county, and subject to the duties and responsibilities which normally are incident -to that position, is such an agent as may reasonably be expected to notify the corporate officers of the suit.

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County Court of Brooke County v. United States Fidelity & Guaranty Co., 105 S.E. 787, 87 W. Va. 504, 1921 W. Va. LEXIS 7 (W. Va. 1921).

105 S.E. 787 (County Court of Brooke County v. United States Fidelity & Guaranty Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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