Gill v. Surgitool Inc.

256 Cal. App. 2d 583, 64 Cal. Rptr. 207, 1967 Cal. App. LEXIS 1890
CourtCalifornia Court of Appeal
DecidedNovember 30, 1967
DocketCiv. 31682
StatusPublished
Cited by4 cases

This text of 256 Cal. App. 2d 583 (Gill v. Surgitool Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gill v. Surgitool Inc., 256 Cal. App. 2d 583, 64 Cal. Rptr. 207, 1967 Cal. App. LEXIS 1890 (Cal. Ct. App. 1967).

Opinion

BISHOP, J. pro tem. *

This is an appeal by the plaintiffs from two successive orders granting the motion of defendant Surgitool, Incorporated, a Pennsylvania corporation, to quash service of summons and complaint upon it. The ground of defendant’s motion was that it “is a foreign corporation not doing business within the State of California and therefore is not subject to the process of the Superior Court of this State.” In support of its position it tendered the affidavit of its president, while in opposition plaintiffs presented the declaration of Phil Nelson, an employee in the supply department of the Los Angeles County General Hospital. After weighing the facts thus presented in these two documents, the trial court granted the motion to quash, and followed its order so doing with another written order to the same effect. We have concluded that the orders should be affirmed.

A brief word about the nature of the action will help us evaluate the situation. Plaintiffs sued for $350,000 damages as the heirs of one Benny Gill on the theory that his death had been caused by the failure of a “ certain number 3 Magovern Aortic Valve,” which was used to replace his own aortic valve as a step in a surgical operation. The operation, performed in St. Vincent’s Hospital in the County of Los Angeles, February 2, 1965, was thought to be successful, and he was discharged from the hospital. But on or about April 4, 1966, “suddenly, the said Benny Gill, deceased, suffered a myocardial infarction as a proximate result of defects in the malfunctioning of the Magovern Aortic Valve, . . . said Benny Gill died on April 4, 1966, at Panorama City, California.” Our quotations have been from the unverified complaint, which names as defendants in addition to Surgitool, Incorporated, another corporation and lists a number of corporations and individuals fictitiously named, blaming each for everything.

*585 Obviously, we are not on this appeal so much concerned with the question 11 does the complaint state a cause of action against defendant Surgitool, Incorporated?” as we are with ascertaining if the service of process on that defendant was that authorized by subdivision 2 of section 411, Code of Civil Procedure, which provides: “The summons must be served by delivering a copy thereof as follows: ... 2. If the suit is against a foreign corporation . . . doing business in this State; in the manner provided by Sections 6500 to 6504, inclusive, of the Corporations Code. ’ ’

Our critical question narrows, then, so that we now inquire: Did it appear that our defendant, which was a foreign corporation, was one ‘ ‘ doing business in this state ?” In endeavoring to lay a foundation for the answer to that question we run again •and again into such statements as this, taken from Henry R. Jahn & Son, Inc. v. Superior Court (1958) 49 Cal.2d 855, 858 [323 P.2d 437, 439] : “The statute authorizes service of process on foreign corporations that are 1 doing business in this State.' That term is a descriptive one that the courts have equated with such minimum contacts with the state ‘that the maintenance of the suit does not offend “traditional notions of fair play and substantial justice. ” ’ ” The question that confronts us, so set up, has been debated in our appellate courts again and again, but it remains, obviously, one that depends for its answer in each case upon the circumstances of that ease. We shall select, for our guidance, two cases, in each of which the problem was sufficiently difficult that the trial court and the appellate court reached opposite results. Then we shall examine the pertinent facts of this ease, in light of the two eases.

A police officer was the plaintiff in Cosper v. Smith & Wesson Arms Co. (1959) 53 Cal.2d 77 [346 P.2d 409], He had purchased in this state a revolver manufactured by the Massachusetts corporation which he named a defendant. During target practice the revolver “exploded and blew apart” injuring him. The trial court held that service upon the corporation was not authorized as it had not been shown that it had been doing business within the state.

The Supreme Court reversed the trial court’s order quashing service, stating (53 Cal.2d 82 [346 P.2d 413]) : “From the record it indisputably appears that Smith and Wesson had a continuing arrangement for the distribution and sale of its products throughout this state. Said defendant had retained a manufacturer’s representative, Lookabaugh, for *586 the promotion of sales, for the servicing of dealer accounts, and for the distribution of advertising material which defendant furnished in furtherance of its selling activity. Such a regular course of business dealings in sales promotion within the state is similar to the regular purchasing activities of the foreign corporation in the J-ahn case and the regular selling activities of the foreign corporation in the Borgward case. Though self-employed as a manufacturer’s representative, Lookabaugh was performing much the same type of substantial selling services for Smith and Wesson through a course of regularly-established and systematic business activity as were deemed in Gray v. Montgomery Ward, Inc., 155 Cal.App.2d 55 [317 P.2d 114], to constitute 1 doing business’ in the state by the foreign corporation there involved. These services may reasonably be said to have given Smith and Wesson ‘in a practical sense, and to a substantial degree, the benefits and advantages it would have enjoyed by operating through its own office or paid sales force. ’ (Sales Affiliates, Inc. v. Superior Court, 96 Cal.App.2d 134, 136 [214 P.2d 541].)”

The second case to which we shall look is Yeck Mfg. Corp. v. Superior Court of San Diego County (1962) 202 Cal.App. 2d 645 [21 Cal.Rptr. 51], Here, we have not an appeal, but a petition for a writ of mandate to compel the superior court to reverse itself and quash service of summons upon the petitioner, a Michigan corporation. An action had been brought by one Rowell to recover damages due to the failure of some columns to hold up a patio roof. Service of summons upon the petitioner, one of the defendants, was made “on the contention that petitioner was ‘ doing business in the State ’ within the meaning of Code of Civil Procedure, section 411, subdivision 2. The motion to quash service was heard in the Superior Court on affidavits, was denied and petition herein filed.”

We shall quote further passages from the opinion, the first being from page 647 of 202 Cal.App.2d [page 52 of Cal.Rptr.] :

“Facts
“The essential facts disclosed by the record before us are without conflict. Petitioner is a Michigan Corporation with its sole manufacturing plant and sole place of physical business operation at Dundee, Michigan. It manufactures certain aluminum building materials. Its general circulatory advertising is solely in national trade magazines.

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Bluebook (online)
256 Cal. App. 2d 583, 64 Cal. Rptr. 207, 1967 Cal. App. LEXIS 1890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gill-v-surgitool-inc-calctapp-1967.