Cumberland Coal Co. v. Sherman

8 Abb. Pr. 243
CourtNew York Supreme Court
DecidedDecember 15, 1858
StatusPublished
Cited by4 cases

This text of 8 Abb. Pr. 243 (Cumberland Coal Co. v. Sherman) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cumberland Coal Co. v. Sherman, 8 Abb. Pr. 243 (N.Y. Super. Ct. 1858).

Opinion

Sutherland, J.

This action was commenced by the service •of a summons and complaint on the defendants Sherman and Dean personally, and upon the president and one of the directors of the Hoffman Steam Coal Company, in the city of New York. The plaintiff and the defendants—the Hoffman Company—are both foreign corporations, organized under the laws •of, and in the State of Maryland. Since the commencement of the action, S. Brook Postly has been made a party defendant by supplemental complaint. The defendants Sherman, Dean, •and Postly are, and were, when the action was commenced, all residents of the State of New York, and Postly was and is the president of the Hoffman Company. No attachment was issued in the action when the same was commenced, or has been since.

[244]*244The Hoffman Company has not appeared generally in the-action, or answered or demurred, but appears, specially, for the mere purpose of making this motion. The motion is on the part of the Hoffman Company for an order setting aside the'summons^ complaint, and all subsequent proceedings in the action on the grounds:

First. That the Hoffman Company has not been lawfully served with the summons or complaint, and has not appeared in the action.

Second. Because the plaintiff and the Hoffman Company are both non-residents of this State; and the cause of action did not arise, and the subject-matter of the action is not situate in this State.

Thwd. Because the said Hoffman Steam Coal Company has no property within this State.

The motion is made on the summons and complaint, and an affidavit of the defendant Postly. I do not deem the question of property, in this State, a question of any importance on this motion. If the question of the regularity of the service of the summons, or of the jurisdiction of the court as to the Hoffman Company in this action, depended upon the question of property in this State, I could hardly say that it appears from the papers before me, that the Hoffman Company had property in this State when the action was commenced, or has had any in the State since.

The complaint, which is verified by Mr. Palmer, the vice-president, and a director of the plaintiff, alleges, on informar tíon am,d beliefs that the Hoffman Company has coal and credits for the proceeds of coal, and property in the city of Hew York.

The defendant Postly, in his affidavit, states that he is, and has been since its organization, the president of the Hoffman Company, and has been and is well acquainted with all its business, affairs and transactions, and its property, and the situation thereof, and that, to his knowledge or belief, the said company has not and had not, when the summons and complaint in this action were delivered to him, any property or coal, or credits for the proceeds of coal, in this State. In reply to this, the affidavit of Mr. Palmer, read on the motion by plaintiff, states facts and circumstances merely, which would make it probable that the-[245]*245Hoffman Company had or has property or coal in Hew York; 'that the Hoffman Company are or have been working its mines in Maryland, and transporting coal therefrom, destined for Hew York, &c. But, as I have said, I do not think this question of property in Hew York of the least importance on this motion. By section 134 of the Code, in a suit against a corporation, the summons shall be served by delivering a copy thereof to the president, or other head of the corporation, secretary, cashier, treasurer, a director, or managing agent thereof—but, by this section, such service can be made, in respect to a foreign corporation, only when it has property within this State, or the cause of action arose therein. By section 427 of the Code, an action against a foreign corporation may be brought in the Supreme Court, the Superior Court of the city of Hew York, or the Court of Common Pleas for the city and ■county of Hew York:

1. By a resident of this State for any cause of action.

2. By a plaintiff not a resident of this State, when the cause of action shall have arisen, or the subject of the action shall be situated within this State.

In an action against a foreign corporation, the regularity of the service under section 134, and whether the court in which the action is brought has jurisdiction of the cause or subject-matter of the action under section 427, are both jurisdictional questions, without a voluntary appearance on the part of the ■defendant. In such an action the court must not only have jurisdiction of the cause or subject of the action under section 427, but the service must be on an officer or agent of the foreign corporation according to section 134, and in a case in which such service is allowed by that section. The Code has done away with the theory and practice of formally entering «the defendant’s appearance for him; but proof of service of the summons in the manner prescribed by the Code, substituted •for such appearance, is necessary, without voluntary appearance, to give the court jurisdiction.

By the act passed April 10, 1855, foreign corporations doing •business in this State are required, within a certain number of •days, to designate some one, in each county where such cor.poration transacts business, on whom process may be served, .and to file such designation in the office of the Secretary of [246]*246State. By the act, in all cases where such designation shall' not be made, and such foreign corporation cannot be served with such process, according to the then provisions of law, it: shall be lawful to serve such process on any person found in this State acting as the agent of said corporation, or doing business-for them. The act declares that a summons shall be held to be-a process, &c.

It is presumed that this act does not extend or enlarge the' jurisdiction of this court as to actions against foreign corporations, under sections 134 and 437 of the Code. It was intended evidently, merely to increase the facilities of serving summonses, &c., against foreign corporations, in the cases allowed by section 134, and of which the court has jurisdiction by section 427.

The summons and complaint in this case were served on Postly as the president of the Hoffman Company, and on one of its directors in the city of Hew York. As it respects the person or officer on whom service was to be made, the service in this case was regular under section 134.

I do not see that the act of 1855 in any way affects the question of the regularity of service, or of jurisdiction in this case.

The service of the summons in this case was regular, and allowed by section 134, if the Hoffman Company had property in this State, or the cause of action arose therein, although the-plaintiff is a foreign corporation. Section 134 makes no distinction between actions by resident and actions by non-resident-plaintiffs.

But, by section 427, the plaintiff being a foreign corporation,, this court has no jurisdiction over this action as to the Hoffman Company, also a foreign corporation, unless the cause of action arose in this State, or the subject of the action is situated within this State.

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Cite This Page — Counsel Stack

Bluebook (online)
8 Abb. Pr. 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumberland-coal-co-v-sherman-nysupct-1858.