Downs v. Delco-Light Co.

143 So. 227, 175 La. 242, 1932 La. LEXIS 1826
CourtSupreme Court of Louisiana
DecidedJune 20, 1932
DocketNo. 31748.
StatusPublished
Cited by5 cases

This text of 143 So. 227 (Downs v. Delco-Light Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Downs v. Delco-Light Co., 143 So. 227, 175 La. 242, 1932 La. LEXIS 1826 (La. 1932).

Opinion

ODOM, J.

A Delco gas and light plant was installed in the residence of plaintiff in May, 1930, by Rauol A. Levy and Frank Leblanc. In July following plaintiff lighted a match near the plant, when it exploded and injured him. This suit is against Levy, Leblanc, and the Delco-Light Company, in solido, for damages resulting from said injuries.

The Delco-Light Company excepted to the jurisdiction of the court ratione persons, which exception was sustained by the trial court. Plaintiff appealed to the Court of Appeal, First Circuit, which court reversed the judgment of the lower court, overruled the exception, and sent the case back for trial. 138 So. 525, 526. The Delco-Light Company applied to this court for writs which were granted, and the case is now before us in obedience to our order.

1. The question whether the court of East Baton Rouge parish has jurisdiction in an action ex delicto against' the Delco-Light Company is the only one here presented.

The Delco Appliance Corporation, trading as the Delco-Light Company, is a Delaware corporation, not authorized to do business in this state. Act No. 1S4 of 1924, § 1, provides that every corporation organized under the laws of another, state, except corporations engaged in the insurance business, “before being authorized to do business in this State, shall, as a condition precedent thereto, file in the office of the Secretary of State a written declaration of its domicile, the place or places in the State where it is doing business, the place of its principal business establishment and the name of its agent or agents or other officers in this State upon whom process may be served who shall be a resident of the parish where the said corporation has an established business.”

This corporation did at one time file such a declaration with the secretary of state and *245 named agents upon whom service might he made. But prior to the date on which this suit was filed it canceled that declaration and formally withdrew from the state.

It is claimed hy plaintiff, however, that the defendant corporation, at the time this cause of action arose and when this suit was filed, had an established place of business which it was maintaining in the city of Baton Rouge, this state, at which and from which it was transacting business through an agent named Geo. Foos. 'Service was made on Foos, and it is contended that service on him was good under paragraphs (b) and (c), subd. 6, § 1, Act No. 179 of 191S. Whether such service was good involves the question whether the corporation w,as in fact engaged in business in this state, whether it had a “regularly employed agent or employee * * * in any office which the corporation may have established and maintains in this State.” On the trial of the exception to the jurisdiction, testimony was taken, which testimony is now before us.

2. The defendant corporation manufactures light and gas plants, as well as all manner of appliances and fixtures which go with them. It does not sell plants or fixtures direct to users or “consumers,” hut appoints throughout the country what are known as “distributors”, who are allotted certain territories within which they may “distribute” the plants and products of the corporation. These “distributors” in turn appoint “dealers,” within the territories allotted to them.

The contract which the corporation makes with the “distributor” provides that:

“The company hereby grants to Distributor the franchise to sell Delco-Light Products, repair and replacement parts within the following territory (but not elsewhere) to wit.” (Then follows a statement of the territory within which the “distributor” may sell the products.)

The contract which the “distributor” makes with the “dealers” contains a similar provision. It reads:

“Distributor hereby grants to Dealer the franchise to sell Delco-Light Products, repair and replacement parts within the following territory (but not elsewhere) to wit:” (Then follows a statement of the dealer’s territory.)

At the time plaintiff had the Delco-Light plant installed in his residence, W. P. Galloway Company, of Little Rock, Ark., was the corporation’s “distributor” for the state of Louisiana, and certain counties in Mississippi, and Frank A. Leblanc was its dealer in certain parishes of this state, including East Baton Rouge, where this cause of action arose. Plaintiff contracted with Leblanc to install the plant, and Levy did the work. Leblanc, at the time the plant was installed, had an established place of business in Baton Rouge where he kept on hand Delco-Light units ready for installation together with all kinds of products and fixtures for such plants. In the building where these products were kept, he had an office where he transacted all business in connection with the sale and installation of the plants. His system was to bargain with a home owner to install a plant for a stipulated sum, all costs of installation to he borne hy him. Such was the contract with Downs, the plaintiff. "

It is contended that , the Galloway Company was the agent of the Deleo Corporation, that Leblanc was the agent of the Gallo *247 way Company, and that therefore Leblanc was the agent of the Delco Company. In other words, that the Delco Corporation was establishing these plants, and that it established this one in particular, through its agent Leblanc. The reason why service was made on Geo. Foos was that he had succeeded the Galloway Company as distributor for this territory.

3. The reason given by the Court of Appeal for holding that the corporation had established this plant for plaintiff through its agents and that it was maintaining an office or establishment in this state was that it reserved certain rights in the contracts with reference to inspection and supervision as well as the right to cancel at will the contracts and to enlarge or reduce the territory. The court found as a fact that a man named Smith came from the Delco-Light factory to Baton Rouge to attend a dealers’ meeting, and that while there he, in company with Levy, who .had installed the plant for Leblanc, -went to plaintiff’s residence to inspect the plant; also a man named Lester, an inspector for the corporation, who attended the same meeting; inspected the plant, and that Smith and Lester took out the burner from the plant and carried it back to the factory. The court found also that Levy, Leblanc’s agent, distributed the literature and advertisement sheets of the Delco-Light Company, which he had received from the Galloway Company. The court observed also that, in the contract which the distributor had with the dealer, there were certain provisions for the protection of the corporation, among them being that the dealer should carry in stock new parts, the amount and kind of which to be specified by distributor from time to time as the distributor might see fit; that the dealer was to sell at specified prices; that the dealer should maintain at his own expense an efficient maintenance and installation service on all Delco-Light products installed in his territory in accordance with instructions issued by the installation department of the Delco-Light Company and to see that all necessary repairs and replacements of Delco-Light products in his territory are promptly and properly made and to maintain a standard of service consistent with Delco-Light policy.

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Cite This Page — Counsel Stack

Bluebook (online)
143 So. 227, 175 La. 242, 1932 La. LEXIS 1826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downs-v-delco-light-co-la-1932.