Gerth's Realty Experts, Inc. v. Kracke

100 So. 41, 156 La. 36, 1924 La. LEXIS 1976
CourtSupreme Court of Louisiana
DecidedMarch 24, 1924
DocketNo. 24516
StatusPublished
Cited by6 cases

This text of 100 So. 41 (Gerth's Realty Experts, Inc. v. Kracke) 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
Gerth's Realty Experts, Inc. v. Kracke, 100 So. 41, 156 La. 36, 1924 La. LEXIS 1976 (La. 1924).

Opinion

BRUNOT, J.

This is a suit in personam against the Gulf Coast Orchard & Products Company and Thomas W. Kracke, in solido, for $3,400, with legal interest thereon from May 7,1919.

From a judgment in favor of plaintiff as prayed for, both defendants have appealed.

The petition alleges that the sum sued for is the commission due plaintiff on the actual selling price of certain real estate.

The Gulf Coast Orchard & Products Company is a Mississippi corporation. Thomas W. Kracke is the president of the corporation and the owner of a controlling interest therein. He has been a resident of Louisiana for many years. For the past four years he has resided about half the time in Mississippi, but it is admitted that he lives at 861 St. Charles street.

Citation upon the Gulf Coast Orchard & Products Company was made upon Thomas W. Kracke, in person, in the dty of New Orleans. The Gulf Coast Orchard & Products Company excepted to the citation. The exception is as follows:

“That "exceptor is a Mississippi corporation doing business under the laws of the state of Mississippi, and having its legal domicile at Pascagoula, Jackson county, Miss., and that said corporation has no office in this state, and conducts no business in Louisiana, and that the service herein is not a good and valid service, and defendant excepts to same.
“That this court is without jurisdiction ratione person®.”

After a hearing thereon the lower court overruled the exception, and we think this ruling was erroneous. In support of its contention that the citation was valid plaintiff relies upon the decisions of this court rendered prior to 1904. , Act No. 149 of 1890 was superseded by Act 54 of 1904. Jackson v. Waters-Pierce Oil Co., 136 La. 764, 67 South. 822.

It was contended in the argument that because the exception concludes with the words “that this court is without jurisdiction ratione personte” the defendant has coupled with its exception to the citation a plea to the jurisdiction of the court, and, as this plea is not made in the alternative with reservation of defendant’s rights under the exception, the plea waives the exception to the citation. We do not concur in this view. This is a suit in personam against a nonresident corporation that does no business in this state, has no agent or designated representative here, and owns no property in Louisiana.

“It is well settled that those who are absentees without property here, whether they are persons or corporations, must be sued at their [39]*39domicile, in all action’s in personam.” Gouner v. Missouri Valley Bridge & Iron Co., 123 La. 964, 49 South. 657.

In the Gouner Case this court says;

“When a petition cannot legally be served on a defendant, the court can exercise no jurisdiction over him. The service defines the court’s jurisdiction. * * * The leading case of Pennoyer v. Neff, 95 U. S. 714, 24 L. Ed. 565, is admirably clear. It lays down the rule with precision. * * * That case has been affirmed and reaffirmed by the Supreme Court of the United States. The state courts have invariably accepted it.”

The exception in this case is to the citation, and because there was not a good and valid service it is alleged in the exception that the court is without jurisdiction ratione personae. We cannot consider this reference to- the court’s lack of jurisdiction as an independent or alternative plea, or as waiving any right of the defendant.

Thomas W. Kracke excepted to the petition as disclosing no right or cause of action. Pending a hearing on this exception a preliminary default was entered against this defendant. On motion of counsel for defendant a rule was issued to show cause why the default should not he set aside. The minute entries do not disclose what hearing, if any, was had on the rule to show cause, but it appears that the exception was overruled and leave was granted the defendant to file another exception. Thereupon plaintiff filed a supplemental petition together with the contract sued upon, and defendant filed an exception of no right or cause of action as to both the original and supplemental petitions. The exception was overruled, and defendant answered, denying the corporate existence of the plaintiff and the authority of Charles S. Gerth, its general manager, to represent it in this proceeding, denying any indebtedness to the plaintiff or the existence of any contract with the plaintiff, hut admitting that, as the representative of the Gulf Coast Orchard & Products Company, he entered into the contract sued upon with Charles S. Gerth personally. The defendant denies that the contract was altered or changed by oral agreement, or that Charles S. Gerth carried out his part of the agreement. The answer concludes with a charge of bad faith, in, that Charles S. Gerth represented both the purchaser and the seller in the negotiations, without the knowledge of defendant.

¡During the progress of the trial the plaintiff offered to introduce in evidence the original charter of Gerth’s Realty Experts, Inc., together with the certificate of the recorder qf mortgages, the newspaper clipping attached to the charter showing the publication thereof, and the certificate of the Secretary of State, with leave to substitute a certified copy for the original. When this offering was made counsel for the defendant entered the following admission:

“I will admit that' that is the charter, and that it is a corporation.” Transcript, p. 81.

In view of this admission, the documents tendered were not filed. Thereafter Mr. George Montgomery, plaintiff’s counsel, was called as a witness, and counsel for defendant asked and obtained from him answers to the questions as follows;

“Q. What is your connection with Gerth’s Realty Experts Company, Inc.?
“A. President and stockholder.
“Q. Have you always been president of that corporation ?
“A. Tes.
“Q. Are you a stockholder of that corporation?
“A. Tes.
“Q. To what extent?
“A. To the extent mentioned in the charter; 20 shares.
“Q. Have you paid for your stock?
“A. Tes.
“Q. In what form?”

At this point the witness addressed the court as follows:

“Of coui'se, I am giving this testimony subject to your honor’s rule, that, in order to at[41]*41tack the charter, he must make a direct allegation.”

The court ruled that where a charter exists valid on its face it cannot be collaterally attacked. Counsel excepted to this ruling, and the case was closed. After the argument or at its conclusion counsel for defendant contended that the answer denied the existence of the plaintiff corporation. Counsel for plaintiff announced that had he known the corporate existence of his client was at issue he would have filed the charter and he therefore applied to the court to reopen the case for the purpose of permitting him to do so. The court overruled an objection to the reopening of the case and permitted the filing of the charter.

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Bluebook (online)
100 So. 41, 156 La. 36, 1924 La. LEXIS 1976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerths-realty-experts-inc-v-kracke-la-1924.