Doherty v. Kansas City Star Co.

57 P.2d 43, 143 Kan. 802, 1936 Kan. LEXIS 68
CourtSupreme Court of Kansas
DecidedMay 9, 1936
DocketNo. 32,716
StatusPublished
Cited by8 cases

This text of 57 P.2d 43 (Doherty v. Kansas City Star Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doherty v. Kansas City Star Co., 57 P.2d 43, 143 Kan. 802, 1936 Kan. LEXIS 68 (kan 1936).

Opinions

The opinion of the court was delivered by

Burch, C. J.:

The action was one by Henry L. Doherty against the Kansas City Star Company and its manager, Roy A. Roberts, for damages for libel. Demurrers were sustained to certain causes of action contained in the petition, demurrers to other causes of action were overruled, and all parties appeal.

Plaintiff is president and chief managing officer of Cities Service [803]*803Company, a corporation, whose principal office is at No. 60 Wall street, New York City. He is also a utility operator and engineer, and under the name Henry L. Doherty & Co. maintains a staff for the rendition of managerial, engineering, financial and other services to public utilities, including the Kansas City Gas Co., of Kansas City, Mo., the Wyandotte County Gas Co., of Kansas City, Kan., the Capital Gas & Electric Co., of Topeka, Kan., and other corporations supplying natural gas to cities and their inhabitants.

The Kansas. City Star Company is a corporation of the state of Missouri, engaged in the business of publishing two newspapers, the Kansas City Times, a morning paper, and the Kansas City Star, an evening paper, each having wide circulation in the states of Missouri, Kansas, and elsewhere. The papers are published at the principal office and place of business of the company in Kansas City, Mo. In conduct of its business, the company maintains offices, and employs agents and servants in the state of Kansas. Being engaged in interstate commerce, the company has neither applied for nor' received a grant of authority from the charter board of the state of Kansas to do business in this state.

The defendant, Roy A. Roberts, a resident of 'Kansas, is one of the chief managing officers of the Kansas City Star Company.

The Kansas City Star Company was served by delivery of sum, mons to a news correspondent in the city of Topeka, Kan.

The petition contained six causes of action which, for brevity, will be referred to as counts. The Star company demurred to counts 1, 2, 3 and 4. The demurrer to count 1 was based on the statute of limitations and other grounds. The demurrer to count 2 was based on the statute of limitations alone. The demurrer to count 3 was based on the statute of limitations and other grounds. The demurrer to count 4 was based on grounds other than the statute of limitations.

Roberts demurred to counts 1, 3 and 4, on the ground those counts did not state facts sufficient to constitute causes of action. Because of absence from the state, he was not in position to urge the statute of limitations. The court sustained the demurrers to counts 1 and 3, and overruled the demurrer to count 4.

As indicated, the Star company demurred to counts 1, 2 and 3, on the ground action was barred by the statute of limitations. Action was barred by the statute of limitations if the Star company, a foreign corporation engaged in interstate commerce, doing business [804]*804in this state and subject to service of process here, was privileged to plead the statute.

Previous to 1905 the statute read as follows:-

“If when a cause of action accrues against a person he be out of the state, or has absconded or concealed himself, the period limited for the commencement of the action shall- not begin to run until he comes into the state, or while he is so absconded or concealed; and if after the cause of action accrues he depart from the state, or abscond or conceal himself, the time of his absence or concealment shall not be computed as any part of the period within which the action must be brought.”

In December, 1903, this court rendered its decision in the case of Williams v. Railway Co., 68 Kan. 17, 74 Pac. 600, the syllabus of which reads:

“A foreign corporation is ‘out of the state,’ within the meaning of section 21 of the code (Gen. Stat. 1901, § 4449), and for that reason cannot avail itself of the statute of limitations of this state.”

The decision was based solely on implications from the metaphysical conception of a corporation, which were pressed so far they were incongruous with the realities of this world of practical affairs. The result was, that at the next ensuing session of the legislature, which assembled in 1905, the statute was amended by the addition of a proviso which reads:

“Provided, This act shall not apply to any foreign corporation authorized to do business in the state upon which service of process can be had within the state.”

The original statute plus the amendment appears as R. S. 60-309.

A person has a physical existence and may go from place to place to accomplish his purposes and satisfy his desires. When the statute came into existence in covered-wagon days, it was conceived the running of the statute ought to be suspended while one against whom a cause of action arose or existed was out of the state, and although the statute was one of repose, it was so framed that it applied even although a form of personal service, by leaving copy of summons at usual place of residence, might be made.

A corporation was merely a mental concept. Because, however, a corporation could do most of the things a person could do, it was necessary to attribute to a corporation the fact of existence. Having existence, a place in space in which to exist was logically necessary. Therefore, the abstraction was assigned a hypothetical domicile. That was as far as reasoning of the type employed could go toward [805]*805the 'concrete, and capacity of a corporation to be anywhere except in the state of domicile was denied.

The railway company involved in the Williams case was a Missouri corporation. It built a line of street railway from Missouri into Kansas, and proceeded to engage in the carriage of passengers in interstate commerce. The railway was a unit. Operation of the railway in Missouri and in Kansas was unitary, but there were offices, agents, and carbarns in Kansas. The corporation could operate streetcars .here, could be guilty of negligence in operation of its cars here, could cause injury to a passenger here, and could be sued for damages here whenever an injured person chose to do so. The corporation, however, could not cross the mathematical line between Kansas and Missouri, and be in Kansas. Therefore, so far as the statute of limitations was concerned, the corporation was out of the state of Kansas for seven years after an accident to a passenger occurred in Kansas, and before action for damages was commenced. That was plainly too theoretical, and the legislature undertook to rationalize the statute of limitations as applicable to actions against foreign corporations doing business here.

There were corporations .and corporations which existed by virtue of the laws of other states. Some of them could not do business here at all and would be subject to immediate ouster if they attempted to do so. Some of them could obtain permission to do business here. Some of them could do business here without any permission and without liability to ouster. The effect of the statute was, that any corporation authorized to do business here, and upon which process could be served here, could plead the statute of limitations, despite the fiction of being out of the state.

The specific words of the statute were, “authorized to do business” here.

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Bluebook (online)
57 P.2d 43, 143 Kan. 802, 1936 Kan. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doherty-v-kansas-city-star-co-kan-1936.