Cousens v. Lovejoy

17 A. 495, 81 Me. 467, 1889 Me. LEXIS 56
CourtSupreme Judicial Court of Maine
DecidedApril 15, 1889
StatusPublished
Cited by5 cases

This text of 17 A. 495 (Cousens v. Lovejoy) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cousens v. Lovejoy, 17 A. 495, 81 Me. 467, 1889 Me. LEXIS 56 (Me. 1889).

Opinion

Foster, J.

The plaintiffs, residing in Maine, have brought this suit against the defendant, a resident of the province of New Brunswick, and summoned the Royal Insurance Company, a foreign corporation, as trustee. This corporation was organized under the laws of England and has its head office at Liverpool. Its managers for New England are Scull & Bradley of Boston, and its agents duly appointed for this state are Downes & Curran of Calais, at which place it does a fire insurance business under a license from the insurance commissioner of Maine.

This trustee, through its agents in this state upon whom service of the writ was made, has disclosed an indebtedness of $1000, due from it to the principal defendant which was in the hands and possession of these agents, at the time of the service of the writ upon them. .

No service has yet been made upon the principal defendant.

The question presented is in relation to the jurisdiction of this court, over the property of the defendant in the possession of the trustee, through its duly authorized agents transacting business in this state.

It is insisted in defense, that inasmuch as the principal defendant is not a resident of this state, and the corporation summoned as trustee is a foreign corporation, this court has no jurisdiction of the parties or the subject matter of the suit.

In support of this proposition reliance is placed upon the decisions of our court in Lovejoy v. Albee, 33 Maine, 414; Columbus Ins. Co. v. Eaton, 35 Maine, 391; and Smith v. Eaton, 36 Maine, 298, the doctrine of which is, that no judgment can be rendered against one as trustee if neither he nor the principal defendant resides within the jurisdiction, and if no tangible property of the [472]*472defendant be found here. Also the earlier decisions in Massachusetts, Tingley v. Bateman, 10 Mass. 343; Ray v. Underwood, 3 Pick. 302; Hart v. Anthony, 15 Pick. 445, and Nye v. Liscombe, 21 Pick. 263, which hold that service of trustee process upon a non-resident party does not subject such party to the jurisdiction of the court, for the purpose of charging the property or funds in his hands.

The principle upon which these decisions are based is, that the presence of the alleged trustee within the jurisdiction was only temporary, and, as stated by the court in the early case of Tingley v. Bateman, supra, the property of the defendant possessed by the trustee is, “to be considered for this purpose as local, -and remaining at the residence of the debtor or person intrusted for the principal; and his rights, in this respect, are not to be considered as following the debtor to any place where he may be transiently found, to be there taken at the will of a third person, within a jurisdiction where neither the original creditor nor debtor resides.”

It will be noticed that in the decisions to which we have referred from our own court, it was not the fact alone that both principal defendant and trustee were non-residents, which deprived the court of jurisdiction, but that fact taken in connection with the very important, element that no property of the defendant was “found within the state and attached in some form.” Lovejoy v. Albee, 33 Maine, 414, 418.

For many years, both in this state and in Massachusetts, corporations were not subject to trustee process. And after the statute, authorizing corporations to be summoned as trustees, the same principle was held to apply to foreign corporations as to individual non-residents, and consequently in Danforth v. Penny, 3 Met. 564; Gold v. Housatonic Railroad, 1 Gray, 424, and Larkin v. Wilson, 106 Mass. 120, the court held that a foreign corporation having no goods, effects or credits within the state was not liable to be summoned as a trustee, though some of its officers resided within the state and its books and records were kept there. The object of the statute, in both states, seems to have been to place corporations upon the same footing in relation to [473]*473trustee process as individuals. As said by Shaw, C. J., in Gold v. Housatonic Railroad, supra: “The statute in question was only an extension of an existing system. It was intended, we think, to put corporations on the same ground as individuals. And it is well settled that an individual, an inhabitant of another state, is not chargeable by the trustee process, although found in this commonwealth, and here served with process.”

It was in this condition of the law that the foregoing decisions were rendered.

Since then, however, the statute not only in Massachusetts (1870, c. 194) but in this state has been materially changed, so that while heretofore only domestic corporations were liable to trustee process, the same as individuals resident in the state, now by Pub. Laws of 1877, c. 158, — R. S., c. 86, § 8, — “All domestic corporations, and all foreign or alien companies or corporations established by the laws of any other state or country, and having a place of business, or doing business within this state, may be summoned as trustees,” etc.

A state may permit foreign corporations to transact business within its limits upon such terms and conditions as it may prescribe, not inconsistent with the constitution and laws of the United States; and in exercising this privilege granted by the state they subject themselves to the provisions of existing law.

So far as appertains to the present case the Royal Insurance Company was “doing business within this stateand in the exercise of this privilege it has subjected itself to the provision of this statute, and is liable to be summoned as trustee. As laid down by the court in Attorney Gen. v. Bay State Mining Co., 99 Mass. 148, 153: “A corporation which seeks, by its agents, to establish a domicil of business in a state other than that of its creation, must take that domicil as individuals are always understood to do, subject to the responsibilities and burdens imposed by the laws which it finds in force there.”

The exemption from trustee process on account of non-residence is not to be pushed beyond the reason of the rule, which rests upoir the idea that the property or debt sought to be reached is without the jurisdiction of the court, and for that reason incapable [474]*474óf being subjected to its process. It was upon tins doctrine that the decisions in Lovejoy v. Albee, supra; Columbus Ins. Co. v. Eaton, supra; and Smith v. Eaton, supra, were founded. The alleged trustees were non-resident individuals temporarily within the jurisdiction. The trustee was sought to be held under that provision of the statute which provides that, “A person summoned as trustee may be adjudged trustee by the court, although he was not then, and never had been an inhabitant of the state.” R. S., c. 86, § 13.

It was that provision upon which the decision of the court Avas based; and it was there held that the purpose of that provision “appears to have been to provide a remedy hr a case, where a person at no time a resident within the state was indebted to,, or had property belonging to a person resident or found within the state.” The court, therefore, obtained, “no jurisdiction to render a judgment against the principal defendant by his being a citizen or resident, or found within this state, or by his having any property found within it.”

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Bluebook (online)
17 A. 495, 81 Me. 467, 1889 Me. LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cousens-v-lovejoy-me-1889.