Elk River Coal & Lumber Co. v. Funk

271 N.W. 204, 222 Iowa 1222
CourtSupreme Court of Iowa
DecidedJanuary 19, 1937
DocketNo. 43682.
StatusPublished
Cited by28 cases

This text of 271 N.W. 204 (Elk River Coal & Lumber Co. v. Funk) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elk River Coal & Lumber Co. v. Funk, 271 N.W. 204, 222 Iowa 1222 (iowa 1937).

Opinion

Hamilton, J.

The Elk River Coal & Lumber Company is a West Virginia corporation with its home office located at Charleston, West Virginia. It also maintains a branch office at Columbus, Ohio. The claimant’s husband, Harry K. Briggs, was employed by this company to work exclusively in Iowa, his employment commencing in 1928 and continuing uninterrupted until his injury and resultant death. The record does not disclose where the contract was entered into. His injury occurred on December 8, 1931, and death resulted July 31, 1932, at his home in Des Moines, Iowa. He is survived by his widow, Cora M. Briggs. At the time of his death and for some time prior thereto, Mr. Briggs’ territory comprised the entire state of Iowa, with some 500 customers or coal dealers throughout the state to whom he sold coal, collected bills, adjusted difficulties and complaints,’ using his own judgment as to extending credit and otherwise transacting the business of the company in connection *1224 with the sale and delivery of coal to its customers in Iowa. He kept in daily contact with the company as to all this business. He was paid a salary of $175 per month, with an allowance of seven cents per mile for car expense and a full unrestricted allowance for all hotel expenses. He had the right to choose his own route. During all the time employed, he was a resident, citizen and voter of Des Moines, Iowa, but the company maintained no office in this state and was at no time licensed to do business in this state, and except for the employment of one Mr. Ilealy, for a short period of time, has had no agent or representative in the state of Iowa since Mr. Briggs’ death. Petition for arbitration on the part of the widow, Mrs. Cora M. Briggs, was filed with the Iowa Industrial Commissioner on September 15, 1933, and after some delay the matter was finally set for hearing at Allison, Iowa, within the county where the accident occurred which caused the death of Mr. Briggs. The company through its attorneys filed a special appearance challenging the jurisdiction of the commissioner to hold the hearing, which special appearance was overruled by the commissioner. Thereupon the company applied to the district court of Butler county for a writ of certiorari which was granted, and upon hearing before the court was sustained on the ground that the commissioner had no jurisdiction of this company, and from this ruling of the court the commissioner has appealed.

It is insisted by the commissioner that there was error in the court’s ruling wherein he held that the commissioner was acting illegally and without jurisdiction to proceed in said investigation and hearing. The legal battle is waged over the sufficiency of the notice of the hearing. The Iowa compensation statute, section 1459, Code of 1935, provides:

“Notice and service. Any notice to be given by the commissioner or court provided for in this chapter shall be in writing, but service thereof shall be sufficient if registered and deposited in the mail, addressed to the last known address of the parties, unless otherwise provided in this chapter.”

Numerous notices were sent by registered mail to the company, some of which were addressed to the company at its office in Columbus, Ohio, and others to the home office in Charleston, West Virginia. Service of notice was also made upon the Secretary of State, and the notices mailed to the company by the *1225 Secretary of State, under the provisions of section 8421, Code of 1935. There is no dispute over the fact that the company received these notices through the mail and therefore had actual notice and knowledge of the hearing and of the proceedings pending before the industrial commissioner. In fact, the company acknowledged receipt of certain of the notices and wrote the commissioner advising him that the attorneys now representing the appellee would look after the matter. It is the earnest contention of the appellee that the commissioner acquired no jurisdiction of the company through this method of service, counsel for appellee contending’ for the well-known principle of law that judgment in personam cannot be legally obtained on a nonresident by service of process outside the state where the cause of action is pending, and he cites the leading cases in this state of Raher v. Raher, 150 Iowa 511, 528, 531, 129 N. W. 494, 500, 35 L. R. A. (N. S.) 292, Ann. Cas. 1912D, 680, and Fisher & Van Gilder v. First Trust Joint Stock Land Bank, 210 Iowa 531, 231 N. W. 671, in support of his contention. The opinion in the Raher case quotes liberally from Pennoyer v. Neff, 95 U. S. 714, 727, 24 L. Ed. 565, a few excerpts from which will indicate the ground upon which the appellee bases its contention:

“No sovereignty can extend its process beyond its own territorial limits to subject either persons or property to its judicial decisions. Every exercise of authority of this sort beyond this limit is a mere nullity and incapable of binding such person or property in any other tribunals. * * * ‘No state has authority to invade the jurisdiction of another and by service of process compel parties there resident or being to submit their controversies to the determination of its courts.’ * * * ‘Due process of law would require appearance or personal service before the defendant could be personally bound by any judgment rendered. ’ # * * ‘ Since the adoption of the fourteenth amendment to the federal Constitution, the validity of such judgments may be directly questioned and their-enforcement in the state resisted, on the ground that proceedings in a court of justice to determine the personal rights and obligations of parties over whom that court has no jurisdiction do not constitute due process of law.’ ” The Iowa court in commenting on this Neff case says:
“It is plain .therefore that whatever is said in Pennoyer v. Neff, with reference to whether a personal judgment against a *1226 defendant not served with process or notice within the state and not entering an appearance or otherwise voluntarily conferring jurisdiction upon the court, is intended to be applicable alike to cases of residents and nonresidents, and these expressions of view leave no possible doubt in our minds as to what the Supreme Court of the United States would hold as to the validity of the judgment now before us.” (Italics ours.)

There can be no question about the principle of law thus announced. It therefore follows that unless the appellee entered an appearance or otherwise voluntarily conferred jurisdiction upon the commissioner to conduct the hearing and make the award as between the claimant and the employer, that the commissioner would have no jurisdiction over the employer, a foreign corporation. It is a well recognized principle of law that the legislature may enact laws permitting service of original notice, process or summons upon a foreign corporation not authorized to do business in this state within prescribed constitutional limitations. American Asphalt Roofing Corp. v. Shankland, 205 Iowa 862, 219 N. W. 28, 60 A. L. R. 986. Typical statutes of this character are found in sections 11072 and 11079 of the Code.

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Bluebook (online)
271 N.W. 204, 222 Iowa 1222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elk-river-coal-lumber-co-v-funk-iowa-1937.