Denver & R. G. R. v. Rodder

100 F. 738
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 5, 1900
DocketNo. 548
StatusPublished
Cited by77 cases

This text of 100 F. 738 (Denver & R. G. R. v. Rodder) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver & R. G. R. v. Rodder, 100 F. 738 (9th Cir. 1900).

Opinion

HAWLEY, District Judge.

This action was instituted to recover damages for injuries received by Katherine A. Roller, one of the defendants in error, on September 9, 1897, while a passenger on the rail[740]*740road of plaintiff in error, in a wreck which occurred between a freight train of the Colorado Midland Company and the regular passenger train of the plaintiff in error, a corporation organized under the laws of Colorado. The Colorado Midland Railroad Company owned and operated a railroad extending from Colorado Springs to New Castle. From New Castle to Rifle Creek, it operated its trains over that portion of the Denver & Rio Grande Railroad under a lease from that corporation. The trains of the respective roads were run by the em-ployés of the respective companies under a time-card and rules for running trains prepared by the plaintiff in error. The record shows that the collision in question was caused by the negligence of the em-ployés on the train of the Colorado Midland Railroad Company, and that the plaintiff in error and its employés were entirely free from any negligence in the matter. This action was brought in the superior court for Los Angeles county, state of California. Summons was issued and served upon W. J. Shotwell, who was the agent of the plaintiff in error at San Francisco, Cal., authorized to solicit and contract for passengers and freight to be carried from the state of California over other lines, and then over the railroad of the plaintiff in error in the state of Colorado, and the soliciting and contracting for passengers and freight to be carried from Eastern points through the state of Colorado to the state of California. The plaintiff in error does not own or operate any railroad in the state of California. The cause of action arose wholly within the state of Colorado. After the service of the summons the action was removed by the plaintiff in error from the state court to the circuit court of the United States for the Southern district of California. A motion was then made to quash the summons and dismiss the action upon the ground that neither the circuit court nor the superior court of the state had or have any jurisdiction of the subject-matter of the action, or of the person of the corporation. The court denied this motion, and its ruling thereon is made the basis of an assignment of error.

1. Did the court err in refusing to quash the summons? In determining this question it becomes our duty to look prayerfully to the statute of California under which the service of the summons was made. The Code of Civil Procedure (section 411), applicable to this case, provides that:

“The summons must be served by delivering a copy thereof, as follows: * * * (2) if the suit is against a foreign corporation, or a non-resident Joint stock company or association, doing business and having a managing or business agent, cashier, or secretary within this state, to such agent, cashier, or secretary.”

The plaintiff in error had an office in the city of San Francisco. Upon the windows of this office were signs which read, “Denver & Rio Grande R. R. Freight and Passenger Office.” In a folder used and distributed by it for public information, giving the places of its offices and agents, is found the name of “W. J. Shotwell, Gen’l Agt. Pacific Coast, 314 California St., San Francisco.” ' W. J. Shotwell, in his affidavit, says:

“That he is the general agent for the Denver & Bio Grande Railroad Company, a defendant herein, for the states of California and Nevada. * * * [741]*741That it is true that in his office in San Francisco he and the clerks under him solicit passengers and freight to go over the Denver & Itio Grande Railroad.' * * This ¡jxüant endeavors to induce shippers of freight to send it from San Francisco, so that during its route oast it will go- over the Denver & Itio Grande road. * * That he issues a shipping receipt or hill of lading for the goods to be shipped from San Francisco. * * * That his only employment is for the purpose of soliciting freight and passenger business, and in influencing shippers and passengers to ship their freight and to travel over the Denver & Itio Grande road in the state of Colorado.”

It thus clearly appears that the plain tiff in error had a business office in the city of San Francisco, slate of California, and a managing-agent in charge of that office, for the purpose of soliciting business in transporting passengers and freight over its road, situated in the state of Colorado. Is not this sufficient to authorize a valid service of summons upon the authorized agent of the corporation? It: will be noticed that, if there is no cashier or secretary upon whom service can be made, the Code does not specify the -extent of the agency required in order to bind a nonresident corporation by service of summons, except that the person must be a “managing or business agent.” It is obvious that this does not mean that it must be the general managing- agent of the corporation. The object of the service is attained when the agent served is of sufficient rank and character as to make it reasonably certain that the corporation will be notified of the service, and the statute is complied with if he be a managing or business agent in any specified line of business transacted by the corporation in the state where the service is made. That Shotwell, upon whom the service was made, was such an agent, is manifest from the facts above stated.

In Tuchband v. Railroad Co., 115 N. Y. 437, 440, 22 N. E. 361, the court said:

“When the corporation has an office in this state, whore a substantial portion of its business is transacted by a person designated by itself as a general agent, although followed by words indicating some one department, it may safely be assumed that the object of the statute will be accomplished. It, of course, intends a ‘managing agent’ in this state, and, where a corporation created by the laws of any other state does business in this state, the person who, as its agent, does that business, should he considered its managing agent; and more especially should that be so where the foreign corporation has an office or place of business in tills state, and when that office is in charge of that person, and he there acts for the corporation. He is there doing business for it, and so manages its business. Such person is, in every sense of the words used in the statute, ‘a managing agent.’ ”

In Merchants’ Mfg. Co. v. Grand Trunk Ry. Co. (C. C.) 33 Fed. 358, the court said:

“A corporation, although it cannot migrate beyond the limits of the sovereignty which has created it, may by comity exercise its franchise elsewhere. A foreign corporation can transact business here upon such conditions as may be imposed upon it by the laws of this state. It can be sued whenever the technical obstacles in the way of compelling its appearance do not exist. At common law, process must be served on its principal officer within the jurisdiction of the sovereignty where the corporate body exists. But it can waive this requirement, and consent to be served in a different manner, and when it does this it stands on the same fooling with a natural person. When it avails itself of the privileges of doing- business in a state whose laws authorize it to be sued there by service of process upon an agent, its assent to that mode of service is implied. Accordingly it has been re[742]

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Bluebook (online)
100 F. 738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-r-g-r-v-rodder-ca9-1900.