Goldmark v. Magnolia Metal Co.

47 A. 720, 65 N.J.L. 341, 1900 N.J. Sup. Ct. LEXIS 7
CourtSupreme Court of New Jersey
DecidedNovember 12, 1900
StatusPublished
Cited by4 cases

This text of 47 A. 720 (Goldmark v. Magnolia Metal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldmark v. Magnolia Metal Co., 47 A. 720, 65 N.J.L. 341, 1900 N.J. Sup. Ct. LEXIS 7 (N.J. 1900).

Opinion

The opinion of the court was delivered by

Depue, Chief Justice.

The argument of this case upon the demurrer having been brought on at the Morris Circuit, the judge certified the case to this court for its advisory opinion upon the following questions:

"First. May an action in attachment be maintained against a foreign corporation having no office or place of business in New Jersey, and which transacts no business here, when the supposed cause of action arose outside of the state, and when such corporation owns real or personal property located within the state which has been attached?”

A proceeding to recover a debt by attaching the property of the debtor was no part of the common law. It had its origin in the custom of London, and was adopted and modified by statute. Being a statutory proceeding in derogation of the common law, we must resort to the statute itself to ascertain its nature and effect. The statute provides for the issuing of writs of attachment against debtors who are absconding or who reside out of the state. The writ can issue only for a cause of action founded on contract and for an indebtedness in a fixed and certain sum, and not for unliquidated damages. The earliest statute on this subject was an act passed March 8th, 1798. Pat. Ij., p. 296; Rev. 1820, p. 355. That statute provided only for writs of attachment against absconding debtors or debtors residing out of the state. The act provided a complete method of procedure, substantially the same as the statute now in force. It did not authorize a writ of attachment against a corporation. On February 22d, 1839, a supplement to the act was passed, the second section of which is as follows: “That writs of attachment may bo issued against any absconding or absent female, [344]*344or against any corporation or body politic not created or recognized by-the laws of this state, in .all cases in which such writ may lawfully issue against an absconding or absent male, any law, usage or custom to the contrary notwithstanding.” Pamph. L., p. 63. This statute was inserted in the Attachment act in the revision of 1845 as section 43. In the revision of 1S74 it was re-enacted as section 7. Gen. Stat., p. 99. Its language is so explicit as to leave no room for construction. It enacts that a writ of attachment may be issued against any corporation or body politic not created or recognized by the laws of this state. The additional words, “in all cases in which such writ may lawfully issue against an absconding or absent male,” have relation to the character of the debt for which the writ shall issue, the object of the legislature being to put corporations not created or recognized by the laws of this state on the same footing as individuals who are debtors, and to make both classes subject to the writ of attachment. This was the construction given by Chief Justice Green to this act in Phillipsburg Bank v. Lackawanna Railroad Co., 3 Dutcher 206.

The cases cited by the defendant to sustain its contention that this writ of attachment was unlawfully issued, namely, Moulin v. Insurance Co. 4 Zab. 222; S. C., 1 Dutcher 57; Camden Rolling Mill v. Swede Iron Co., 3 Vroom 15; National Condensed Milk Co. v. Brandenburgh, 11 Id. 111, are not constructions, of this statute. The suits in those cases were common law suits commenced by service of process of summons. In the case first cited it was held that “a corporation chartered by a state, which confines its business within such state, cannot be sued in a state where it has not established any office or transacted any business, by serving process on its president or other officer when accidentally present in such state.” In the second case the suit was commenced by a summons served in compliance with the act of 1865. Pamph. L., p. 467; Rev., p. 193, § 88. The plea demurred to averred that the defendant at the time of the commencement of the suit, had not, and has not, any office or place of business in the State of ISTew Jerse3r, and did not then, [345]*345and does not .now, transact any business in the State of New Jersey, and that the supposed causes of action accrued to the plaintiff out of the jurisdiction of this court, to wit, at Philadelphia, in the State of Pennsylvania. The. demurrer to the plea was overruled. In the course of his opinion Chief Justice Beasley used this language: “Upon general principles, and in the absence of statutory innovations, it is to be regarded as settled, in this state at least, that if a foreign corporation, at the time of the commencement of suit, does not do business, and has not any office or place of business in this state, the contract sued on not having been entered into in this state, such corporation, except by its own consent, cannot be brought within the jurisdiction of this or any court of this state.” The case was decided upon common law principles applicable to a suit at •common law. The statutory effect of innovations, such as •our Attachment act, which gives a remedy against a foreign corporation having property in this state by proceeding, not against the corporation personally, but against its property in rem, is within the exception contained in the opinion of the Chief Justice. National Condensed Milk Co. v. Branden-burgh, is a restatement of the law in Moulin v. Insurance Co., .and was a suit commenced by summons. In that case the contract was made in this state, and the defendant .was summoned in accordance with the eighty-eighth section of the Corporation act. Hence it was held that the suit was not •subject to a plea to the jurisdiction.

I agree entirely with the decisions in the cases last cited, that a foreign corporation which confines its business within the state by which it is created, and transacts no business in this state, cannot be brought within the jurisdiction of the courts of this state by service of process upon one of its officers. But that is not the present case. While the courts of a state may not obtain jurisdiction over a foreign corporation by service of process in such a way as to give a judgment in personam, the jurisdiction of every state and government over property having its situs within its territory is indisputable. In the case of Pennoyer v. Neff, 5 Otto 714, 723, [346]*346Mr. Justice Field uses this language: “The state, through its tribunals, may subject property situated within its limits-owned by non-residents to the payment of the demand to its own citizens against them; and the exercise of this jurisdiction in no respect infringes upon the sovereignty of the state where the owners are domiciled. Every state owes protection to its own citizens, and when non-residents deal with them it is a legitimate and just exercise of authority to hold and appropriate any property owned by such nonresidents to satisfy the claims of its citizens. It is in virtue-of the state’s jurisdiction over the property of the nonresident situate within its limits that its tribunals can inquire into that non-resident’s obligations to its own citizens and the inquiry can then be carried only to the extent necessary' to control the disposition of the property. If the non-resident have no property in the state, there is nothing upon which the tribunals can adjudicate.” The seizure of the property of the defendant, under the proper process of the court, is-the foundation of the court’s jurisdiction. Cooper v. Reynolds, 10 Wall. 308.

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Cite This Page — Counsel Stack

Bluebook (online)
47 A. 720, 65 N.J.L. 341, 1900 N.J. Sup. Ct. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldmark-v-magnolia-metal-co-nj-1900.