Covington v. Southern Specialty Sales Company

158 So. 2d 79, 1963 La. App. LEXIS 2051
CourtLouisiana Court of Appeal
DecidedNovember 12, 1963
Docket5968
StatusPublished
Cited by13 cases

This text of 158 So. 2d 79 (Covington v. Southern Specialty Sales Company) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Covington v. Southern Specialty Sales Company, 158 So. 2d 79, 1963 La. App. LEXIS 2051 (La. Ct. App. 1963).

Opinion

158 So.2d 79 (1963)

Jessie COVINGTON
v.
SOUTHERN SPECIALTY SALES COMPANY, Inc., et al.

No. 5968.

Court of Appeal of Louisiana, First Circuit.

November 12, 1963.

*80 Brumfield, Turner & Cooper, by Sylvia Roberts, Baton Rouge, for appellant.

Watson, Blanche, Wilson, Posner & Thibaut, by David W. Robinson, Durrett, Hardin, Hunter, Dameron & Fritchie, by Ben W. Lightfoot, Baton Rouge, for appellees.

Before ELLIS, LOTTINGER, HERGET, LANDRY and REID, JJ.

LANDRY, Judge.

Jessie Covington, a mechanic in the employ of Miranda Sales Company, a retail seller of lawn mowers, Baton Rouge Louisiana, instituted this action seeking damages for personal injuries resulting from an accident which occurred during the course of his employment on June 5, 1959, when the pull or starter rope of a Roto Clipper lawn mower, on which he was working, became fouled striking petitioner on the leg. Named defendants herein are Clinton Engine Corporation, a foreign corporation having its principal place of business in Maquoketa, Iowa, manufacturer of the gasoline engine forming a component of the lawn mower in question; Falls Products, Inc., a foreign corporation domiciled in Genoa, Illinois, manufacturer of lawn mowers sold under the trade name Roto Clipper; and Southern Specialty Sales Company, Inc., a Louisiana corporation domiciled in Orleans Parish, Louisiana, distributor for Clinton Engine Corporation. Hardware Mutual Casualty Company, workmen's compensation insurer of plaintiff's employer, intervened in the action praying for reimbursement of workmen's compensation benefits paid plaintiff in the event plaintiff should prevail herein.

*81 As amended and supplemented, plaintiff's petition alleges defendants, Clinton Engine Corporation and Falls Products Company, Inc., though both foreign corporations are actually engaged in business activities within this state. For a cause of action against defendant, Clinton Engine Corporation, it is asserted said defendant was negligent in designing and manufacturing the engine so that it did not function properly and therefore constituted a trap or dangerous device. Additional negligence as to this defendant is charged to the effect said defendant failed to warn users of the inherent vices and defects in its engine and affixing and attaching thereto a starter or pull rope which was defective and unfit for the purpose for which it was intended. The negligence of defendant, Falls Products Company, Inc., is its alleged use of a defective engine in its lawn mower and its failure to warn users of the inherently dangerous nature of the device.

Defendants, Clinton Engine Corporation and Falls Products, Inc., sometimes hereinafter referred to simply as "Clinton" and "Falls", respectively, excepted to the citation served upon them through the Secretary of State and to the trial court's jurisdiction ratione personae contending in essence they are foreign corporations not engaged in business activity within the state and therefore not amenable or subject to suit in the courts of this state. The trial court sustained the aforesaid exceptions and dismissed plaintiff's complaint as to Clinton and Falls, hence this appeal by plaintiff.

In his brief before this court, learned counsel for appellant maintains our esteemed brother below erred in two respects, namely: (1) Finding defendants, Clinton and Falls, were not doing business in Louisiana and therefore not amenable to suit in the courts of this state contrary to the provisions of LSA-R.S. 13:3471(1) and the prevailing jurisprudence; and (2) Applying the provisions of LSA-R.S. 12:211 which regulates the right of a foreign corporation to institute suit in the courts of this state, which latter statute is inapposite considering the present action is not one by a foreign corporation but rather one against a foreign corporation by a citizen of this state.

This appeal presents but a single issue, namely, whether defendants Clinton and Falls have engaged in such business activity within this state as to subject their respective persons to the jurisdiction of our courts. Stated otherwise the sole question before us may be said to be whether the nature of the activity conducted by Clinton and Falls within this state has made them amenable to suit in which personal judgment may be rendered against them by virtue of substituted service made upon the Secretary of State as provided for by applicable state statute.

Involved herein is the principle of due process of law contained in the Fourteenth Amendment to the Constitution of the United States as interpreted in the landmark case of Pennoyer v. Neff, 95 U.S. 714, 24 L.Ed. 565, wherein the Supreme Court of the United States in effect held the due process clause of the Federal Constitution places some limitations and restrictions on the power of state courts to enter binding judgments against defendants not served with process within their boundaries.

Since Pennoyer v. Neff, supra, however, the Federal Supreme Court has, to considerable degree, modified and liberalized the effect of its holding therein so as to expand and enlarge the jurisdiction of state courts over the persons of foreign corporations and other non-residents.

In the case of International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, 161 A.L.R. 1057, the question presented was the amenability of a Delaware corporation to suit in the courts of the State of Washington in an action seeking recovery of unpaid contributions to the state unemployment compensation fund. The corporation involved manufactured shoes in Missouri and several states other than Washington and its merchandise *82 was distributed in interstate commerce through numerous sales branches located outside Washington State. The corporation in question had no office within the state and made no contracts of sales or purchases there. It maintained no stock of merchandise within the state and made no intrastate deliveries within the boundaries of Washington. The corporation did, however, employ resident salesmen in the State of Washington, their compensation being on a commission basis and their authority being limited to showing samples and soliciting orders which were transmitted to St. Louis, Missouri, for acceptance or rejection by the corporation. Upon acceptance of an order, the merchandise was shipped f. o. b. from points outside Washington to the purchasers within the state. No salesman was authorized to enter into contracts or make collections and all merchandise shipped into Washington was invoiced at the place of shipment. Nevertheless, the court therein held the activities of the corporation were systematic and continuous and resulted in a large volume of interstate business in the conduct of which the corporation received the benefits and protection of the laws of Washington, including the privilege of resort to the courts of the state for enforcement of its rights. In substance, the court held due process does not require "consent", "doing business" and "presence" as the criteria for determining the extent of state judicial power over non-residents but only that, if the individual be not present within the territory of the forum, he have certain minimum contacts within the state so as not to offend traditional concepts of fair play and substantial justice.

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Bluebook (online)
158 So. 2d 79, 1963 La. App. LEXIS 2051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/covington-v-southern-specialty-sales-company-lactapp-1963.