First Jackson Securities Corp. v. B. F. Goodrich Co.

176 So. 2d 272, 253 Miss. 519, 1965 Miss. LEXIS 1010
CourtMississippi Supreme Court
DecidedJune 14, 1965
Docket43563
StatusPublished
Cited by31 cases

This text of 176 So. 2d 272 (First Jackson Securities Corp. v. B. F. Goodrich Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Jackson Securities Corp. v. B. F. Goodrich Co., 176 So. 2d 272, 253 Miss. 519, 1965 Miss. LEXIS 1010 (Mich. 1965).

Opinion

*523 Brady, Tom P., J.

This is an appeal by First Jackson Securities Corporation, a Mississippi corporation, hereinafter called First Jackson, from a judgment rendered in the Circuit Court of Humphreys County on February 6,1964, wherein the appellee, B. F. Goodrich Company, recovered a default judgment against the appellant in the sum of $7,039.89. Subsequently, at the same term of court, a judgment in the sum of $3,084.24, together with all costs, was taken against another garnishee, Deposit Guaranty Bank & Trust Company, in favor of appellant.

The basic facts out of which this lawsuit arose are briefly these: B. F. Goodrich Company, hereinafter called Goodrich, attempted to collect an account owed by Boyd Kellum, a former employee of First Jackson. Goodrich sued Kellum and secured a judgment of $6,274.-12 against him on February 6, 1962. First Jackson was not a party to that suit.

In April 1963, about two months after Kellum had left the employment of First Jackson, a writ of garnishment was issued against First Jackson on Goodrich’s judgment against Boyd Kellum. There is nothing in the record to indicate that First Jackson had any knowledge of the judgment, or of Kellum’s indebtedness to Goodrich. Appellant’s only connection with this matter was as Kellum’s employer for a short while. The record indicates that Kellum has not been reemployed and that First Jackson was not indebted to Kellum at the time of the termination of his services.

On June 28, 1963, First Jackson maintained an office in the Deposit Guaranty Bank & Trust Company in Jackson, Mississippi. Mr. Charlie Mac Jones, who was vice president and general manager of First Jackson, was in charge of this office. The record indicates that First *524 Jackson had a resident agent, Charles Shapero, for the service of process, bnt it is not clear whether he was resident agent at the time the writ of garnishment was issued. The Sheriff of Hinds County received the writ of garnishment and, on June 28,1963, through his deputy, made an effort to serve it. On its face the writ shows that the agent of First Jackson was Charles Shapero. The record fails to show that the sheriff made any attempt to serve it on Charles Shapero. The record discloses that he did not attempt to serve it on Mr. Jones, the vice president and general manager of the corporation and the officer in charge of the Jackson office. Instead, he delivered it to Mrs. Judith Ferguson. The return showed it was delivered “to Mrs. Judith Ferguson Secretary.”

The record discloses that Mrs. Judith Ferguson was not the secretary of First Jackson; that she was not, nor has she ever been, an officer of the corporation; and that she had no managerial authority and no voice whatsoever in the operations of the corporation or in forming or carrying out company policy. She was a minor employee who took and transcribed dictation, answered the phone, and, when Mr. Mac Jones was in the office, acted as receptionist to the few clients who called. Ninety percent of the business was handled over the telephone. The limitation of her employment was clearly established by her testimony and that of all other witnesses. Untrained and inexperienced in such matters, and not acquainted with the significance of the writ of garnishment, Mrs. Ferguson naively signed the writ and mailed it back to the Circuit Clerk of Humphreys County in Belzoni. The record discloses that the writ of garnishment was never delivered to Mr. Charlie Mac Jones and that he knew nothing about it until long after the default judgment had been rendered. Mrs. Ferguson’s testimony is not certain as to whether or not she put the writ on Mr. Jones’ desk. However, his testimony is *525 positive that he never saw or received the garnishment or knew anything about it until long after the default judgment had been taken, and the motion to quash and dismiss the judgment was filed.

The record wholly fails to show that First Jackson had any notice that the writ of garnishment was pending in the Circuit Court of Humphreys County or had any inkling of the same until about four months after the default judgment had been taken. Goodrich did not immediately advise First Jackson of this default judgment, but waited until the ninety day time for appeal had expired, and then notified First Jackson in June 1964. The record shows that this was the first time that anyone with any authority or responsibility in First Jackson had any knowledge that the corporation was involved in any court action in Humphreys County. Upon discovering this fact, the appellant immediately employed attorneys and filed its motion to set aside and vacate the default judgment. The basis for the motion was that First Jackson had no notice that the writ of garnishment had been filed against it, that no process was ever served on First Jackson, and that Mrs. Ferguson was not the secretary, but merely an employee of First Jackson, without any managerial or executive responsibility whatsoever; that she never delivered the process to any employee or officer, and that no official of First Jackson ever received knowledge of the issuance of the writ or its attempted service; that at the time of the issuance of the writ Charles Shapero, who was designated as agent, was not served or notified of the writ; and that the judgment was void. The motion further stated that First Jackson was not indebted to Kellum and had no assets of his in its hands at or since the time of the issuance of the writ. This motion was contested by Goodrich, and its contest placed in issue the grounds urged by First Jackson in its motion to vacate.

In addition to this writ of garnishment against appellant, other writs of garnishment were filed by Good *526 rich, one being against the Deposit Guaranty Bank & Trust Company of Mississippi, which garnishee replied that it did have on deposit in its hands the sum of $3,084.24 of First Jackson’s funds. Motions, which appellee also contests, were made to quash and dismiss these other writs. These motions are now waiting the determination of the first motion to vacate the judgment against the appellant, all of which turn upon the question of the validity of the original process delivered to Mrs. Judith Ferguson. The circuit court ruled that the delivery of process to Mrs. Ferguson was sufficient service on the appellant and denied all of the appellant’s motions.

The fundamental issue for consideration is whether or not the Mississippi statutes authorize process upon a corporation to be obtained by the delivery of a copy of the process to a minor employee, such as Mrs. Judith Ferguson. It is vigorously contended by the appellant that the delivery of the copy of the writ to Mrs. Ferguson is void and will not support a default judgment based thereon. The appellant further claims that the return of the officer serving any process may be shown to be untrue by either party and that a default judgment rendered without proper process is void and will be set aside at a later term of court upon motion of either party. While the appellant urges several assignments of error, the two contentions hereinabove stated in substance constitute a summary thereof. The sections of Mississippi Code Annotated (1956) which are relevant are as follows:

Sec. 1866. How served and effect of when corporation a defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
176 So. 2d 272, 253 Miss. 519, 1965 Miss. LEXIS 1010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-jackson-securities-corp-v-b-f-goodrich-co-miss-1965.