County Plumbing & Heating Company v. Strine

272 A.2d 340, 1970 Del. Super. LEXIS 342
CourtSuperior Court of Delaware
DecidedDecember 17, 1970
StatusPublished
Cited by12 cases

This text of 272 A.2d 340 (County Plumbing & Heating Company v. Strine) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County Plumbing & Heating Company v. Strine, 272 A.2d 340, 1970 Del. Super. LEXIS 342 (Del. Ct. App. 1970).

Opinion

OPINION

CHRISTIE, Judge.

The moving party Pebbco Industries, Inc. a Pennsylvania corporation, here challenges the application of the Delaware “long arm” statute as it applies to substituted service of process upon it.

The pertinent facts are not in dispute.

County Plumbing & Heating Company (County Plumbing), a Delaware corporation, has here filed suit against Pine Woods, Inc. a Delaware corporation, alleging that pursuant to a contract dated February 1, 1968, County Plumbing agreed to do plumbing and heating work in apartment buildings owned by Pine Woods, Inc. in return for payment in the approximate amount of $149,000. The work was completed by about June IS, 1968 and full payment was made except for $8,697.00 which County Plumbing alleges is due to it under the agreement. County Plumbing seeks judgment in this amount.

Pine Woods, Inc. in turn has filed an answer and a counterclaim against the plaintiff together with “counterclaims” bringing in as new defendants in the counterclaims Delmarva Power & Light Company, Ralph Oil Company, Inc., Triangle Electrical Company and Pebbco Industries, Inc. The counterclaims alleged that on or about December 7, 1969, the heating system in the apartment buildings owned by Pine Woods, Inc. failed, causing an explosion which caused extensive damage to the apartments.

The defendants on the counterclaims have filed answers denying the allegations of Pine Woods, Inc. Pebbco Industries, Inc. filed a motion to dismiss the claim against it pursuant to Rule 12(b) on the ground that the Court lacks in personam jurisdiction over it and that the substituted service of process here employed upon it was insufficient. This motion raises the only issue to be resolved in this opinion.

*342 For purposes of the pending motion, the Court will assume that: the heating system in question was installed by County Plumbing and maintained by the Ralph Oil Company, Inc.; that Triangle Electrical Company installed all other electrical equipment in the apartments; that Delmarva Power & Light Company furnished electric power to the apartments and that Pebbco Industries, Inc. manufactured a part of the heating system installed in the apartments.

Affidavits indicate that Pebbco had no offices, warehouses nor other facilities in Delaware. Pebbco had no officers or employees of the company stationed in Delaware, nor did it have its own regular salesmen come into Delaware for the specific purpose of selling Pebbco products. Pebb-co maintained no company controlled sales agencies, franchises or subsidiaries in Delaware. It was not registered to do business in Delaware, and did not have a registered agent within the State.

Pebbco was engaged in the manufacturing of heating units which it sold through independent manufacturers’ agents or representatives who sold many lines of goods. These manufacturers’ agents or representatives were not salaried employees of Pebb-co, but independent contractors who received a commission for each of the units they sold.

Most of Pebbco’s sales were made through correspondence or orders received directly from the purchaser. In many cases the purchaser took care of the transportation of the heating units to the desired location. Pebbco’s employees did not deliver the units but sent them F.O.B. by common carrier.

The units, once they were sold, were installed by employees of independent local contractors such as County Plumbing and not by Pebbco employees. The service and maintenance of the heating units were not done by Pebbco employees but were done by installers or local heating companies.

Pebbco contends that under the circumstances substituted service of process under the following statute was not available against it:

§ 382. Service of Process on non-qualifying foreign corporations
(a) Any foreign corporation which shall transact business in this State without having qualified to do business under section 371 of this title shall be deemed to have thereby appointed and constituted the Secretary of State of this State, its agent for the acceptance of legal process in any civil action, suit, or proceeding against it in any State or Federal Court in this State arising or growing out of any business transacted by it within this State. The transaction of business in this State by such corporation shall be a signification of the agreement of such corporation that any such process when so served shall be of the same legal force and validity as if served upon an authorized officer or agent personally within this State.
(b) The provisions of section 373 of this title shall not apply in determining whether any foreign corporation is transacting business in this State within the meaning of this section; and “the transaction of business” or “business transacted in this State,” by any such foreign corporation, whenever those words are used in this section, shall mean the course or practice of carrying on any business activities in this State, including, without limiting the generality of the foregoing, the solicitation of business or orders in this State. The provisions of this section shall not apply to any insurance company doing business in this State. (8 Del.C.)

The cross reference in the above statute to section 373 is a reference to the Delaware statute which provides that foreign corporations falling within certain specified categories need not qualify to do business in Delaware by filing a certificate with the Secretary of State. Among the corporations not required to qualify by such procedure are those engaged in sales within the state where the orders are subject to approval outside the state and the goods are shipped from outside the state.

*343 It is obvious from the wording of the above quoted long arm statute and its legislative history that the standards to be applied to the application of that statute are not the same standards as those applied in determining which corporations are required to qualify to do business in the state by registering with the Secretary of State.

It is the contention of Pine Woods, Inc. that Pebbco did in fact “transact business” in this state within the meaning of 8 Del. C. § 382 in that it followed a “course or practice” of “business activities” by “the solicitation of business or orders in this State.”

Pine Woods points to the following additional evidence to support its contention: Pebbco’s sales manager made casual sales visits to Delaware from time to time perhaps once or twice a year. Pebbco’s chief engineer made sales follow-up and customer follow-up visits to Delaware in the hope that customers would continue to buy the products. In addition, manufacturers agents from Baltimore came to the southern part of Delaware from time to time to solicit sales of various products including Pebbco’s products but such trips did not include visits to County Plumbing. There was also mail solicitation by which Pebbco sent sales literature and sales brochures to a limited number of prospective customers in Delaware including County Plumbing. In the five years prior to the filing of this suit Pebbco had sold about 50 boilers a year in Delaware.

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

Related

Melia v. Les Grands Chais de France
135 F.R.D. 28 (D. Rhode Island, 1991)
Waters v. Deutz Corp.
460 A.2d 1332 (Superior Court of Delaware, 1983)
Cropper v. Rego Distribution Center, Inc.
461 F. Supp. 529 (D. Delaware, 1978)
General Foods Corp. v. Haines and Co., Inc.
458 F. Supp. 1167 (D. Delaware, 1978)
Perry v. American Motors Corporation
353 A.2d 589 (Superior Court of Delaware, 1976)
Eastman Kodak Co. v. Studiengesellschaft Kohle mbH
392 F. Supp. 1152 (D. Delaware, 1975)
A. A. R. Realty Corp. v. United States Fire Insurance
335 A.2d 271 (Superior Court of Delaware, 1975)
Scott Paper Company v. Scott's Liquid Gold, Inc.
374 F. Supp. 184 (D. Delaware, 1974)
Nacci v. Volkswagen of America, Inc.
297 A.2d 638 (Superior Court of Delaware, 1972)
Simpson v. Thiele, Inc.
344 F. Supp. 7 (D. Delaware, 1972)
La Chemise Lacoste v. General Mills, Inc.
53 F.R.D. 596 (D. Delaware, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
272 A.2d 340, 1970 Del. Super. LEXIS 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-plumbing-heating-company-v-strine-delsuperct-1970.