Cowan v. Ford Motor Co.

694 F.2d 104
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 20, 1982
DocketNo. 82-4107
StatusPublished
Cited by21 cases

This text of 694 F.2d 104 (Cowan v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cowan v. Ford Motor Co., 694 F.2d 104 (5th Cir. 1982).

Opinion

JOHN R. BROWN, Circuit Judge:

Mary Ezell Cowan brings this diversity suit against the Ford Motor Company (Ford) in United States District Court in Mississippi, pleading a cause of action which arose entirely out-of-state. Neither she nor Ford is a resident of Mississippi. Ford, however, is expressly authorized to do business in Mississippi, is actually doing business, and has designated a resident agent upon whom process was served.1 The sole question before us is whether the district judge erred in declining to accept jurisdiction and dismissing the case. We hold that he did err. Accordingly, we reverse and remand.

On Christmas Day, in 1975, Earl Cowan was critically injured in a pickup truck accident in Cherokee County, Texas. He died on January 18,1976. In the winter of 1981, long after the two-year Texas statute of limitations had expired,2 his widow, Mary Ezell Cowan, filed this suit against Ford. She and the named heirs-at-law are residents of Texas, as was her husband. Ford is incorporated in Delaware with its principal place of business in Michigan. The truck was neither manufactured nor sold in Mississippi. After service of process on its resident agent in Mississippi, Ford filed a motion to dismiss pursuant to Fed.R.Civ.P. 12(b). The district judge granted the motion.3

In a diversity action, the reach of federal jurisdiction over persons is measured by the law of the forum state subject, however, to Federal Due Process claims. Therefore we must first ask whether Mississippi claims the right to bring Ford before its courts to answer a non-resident’s complaint over an out-of-state cause. If so, we must then decide whether the Due Process Clause allows that exercise of jurisdiction. We find that Mississippi does assert this right and that it constitutionally may do so.

In Poole v. Mississippi Publishers Corp., 208 Miss. 364, 44 So.2d 467 (1950), the Mississippi Supreme Court considered at length the effect and purpose of the statute compelling an authorized corporation to designate an in-state agent for service of process.

Our holdings in the case4 may be summarized as that, all foreign corporations doing business in Mississippi shall be subject to suit here to the same extent that corporations of the state are, whether the cause of action accrued here or not, and this statute indicates a general policy of equality and similarity of treatment as between foreign and domestic corporations.

44 So.2d at 473.

This policy of equality of treatment was followed in Leavell v. Doster, 211 So.2d 813 [106]*106(Miss.1968). In Leavell a foreign corporation, authorized to do business and with an appointed agent in Mississippi, was allowed to take advantage of the state’s long-arm statute. A corporation not authorized to do business would not have been. The Court held that for the purposes of the statute, a corporation authorized to do business was to be considered equivalent to a resident of the state.

The question is definitively settled by S & W Construction Co. v. Douglas, 244 Miss. 498, 142 So.2d 33 (1962). In S & W Construction, the Mississippi Supreme Court met an argument identical to Ford’s in this case.

Appellant contends that it was not suable in Coahoma County, Mississippi, on the ground that appellant is a Tennessee corporation, plaintiff is a resident of Tennessee, and the accident occurred in Tennessee. Appellee contends that appellant qualified to do business in Mississippi in 1948, and appointed a resident agent for the service of process, and service was had on said agent. We hold that the Circuit Court of Coahoma County had jurisdiction to hear the case.

142 So.2d at 34.

Ford seeks to distinguish S & W Construction by pointing out that the accident therein occurred close to the Mississippi border and that the Tennessee plaintiff had once lived in Mississippi. The Court’s opinion, however, clearly does not rely upon or even give any consideration to those factors.

Ford stresses Morris & Co. v. Skandinavia Insurance Co., 279 U.S. 405, 49 S.Ct. 360, 73 L.Ed. 762 (1929) (Morris I), and Morris & Co. v. Skandinavia Insurance Co., 161 Miss. 411, 137 So. 110 (1931) (Morris II) to support its interpretation of Mississippi law. In those pre-Erie cases, the courts held that Mississippi did not presume to exercise jurisdiction over a foréign insurance corporation in a suit filed by a non-resident over a contract entered into out-of-state. Two distinctions between those and the present case are readily apparent. The corporation in Morris, a reinsurer, was held not to be “doing business” in the state. In addition, the courts were interpreting neither § 79-3-229 nor its predecessor, but a statute appointing the state insurance commissioner as agent for process of any insurer liable for property in Mississippi.

The Supreme Court, in Morris I, stated, “The purpose of state statutes requiring the appointment by foreign corporations of agents upon whom process may be served is primarily to subject them to the jurisdiction of local courts in controversies growing out of transactions within the state.” 279 U.S. at 409-10, 49 S.Ct. at 361-62. In light of the many developments in the law of jurisdiction and due process since 1929,5 the continued value of this observation may be open to question. Whatever its worth, however, the Court then, as it does now, plainly left to the states the interpretation of the reach of their own statutes. S & W Construction decides the issue in Mississippi.

Mississippi law gives its courts jurisdiction over Ford.

We must now consider whether Mississippi’s exercise of jurisdiction is offensive to due process. Our starting point necessarily is Perkins v. Benguet Consolidated Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952). In that case, a non-resident plaintiff sued a foreign corporation in Ohio on a cause of action arising from activities entirely distinct from the corporation’s activities in Ohio. Having found that the corporation had sufficient contacts with the state, the Court was able to find “no requirement of federal due process that either prohibits Ohio from opening its courts to the cause of action here presented or compels Ohio to do so.” (emphasis in original) 342 U.S. at 446, 72 S.Ct. at 418.6

[107]*107Ford attempts to rely upon Curtis Publishing Co. v. Birdsong, 360 F.2d 344 (5th Cir.1966) and succeeding cases7 for the proposition that the forum state must have an interest in the cause of action before it may subject a non-resident defendant to its jurisdiction.

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

Related

DeLoach v. Alfred
952 P.2d 320 (Court of Appeals of Arizona, 1998)
Conner v. Conticarriers & Terminals, Inc.
944 S.W.2d 405 (Court of Appeals of Texas, 1997)
Riego Zúñiga v. Líneas Aéreas Costarricenses Sociedad Anónima
139 P.R. Dec. 509 (Supreme Court of Puerto Rico, 1995)
Follette v. Clairol, Inc.
829 F. Supp. 840 (W.D. Louisiana, 1993)
Murray v. Remington Arms Co., Inc.
795 F. Supp. 805 (S.D. Mississippi, 1991)
Sternberg v. O'NEIL
550 A.2d 1105 (Supreme Court of Delaware, 1988)
Bastoe v. Sterling Drug, Inc.
683 F. Supp. 586 (S.D. Mississippi, 1988)
Commercial Agency v. Loe
667 F. Supp. 359 (S.D. Mississippi, 1987)
Ferens v. Deere & Co.
819 F.2d 423 (Third Circuit, 1987)
Price v. International Telephone & Telegraph Corp.
651 F. Supp. 706 (S.D. Mississippi, 1986)
Herrley v. Volkswagen of America, Inc.
598 F. Supp. 690 (S.D. Mississippi, 1984)
Sam Smith v. Dewalt Products Corporation
743 F.2d 277 (Fifth Circuit, 1984)
Manookian v. AH Robins Co., Inc.
580 F. Supp. 877 (S.D. Mississippi, 1984)
Cowan v. Ford Motor Co.
719 F.2d 785 (Fifth Circuit, 1983)
Cowan v. Ford Motor Company
437 So. 2d 46 (Mississippi Supreme Court, 1983)
Cowan v. Ford Motor Company
694 F.2d 104 (Fifth Circuit, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
694 F.2d 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cowan-v-ford-motor-co-ca5-1982.