Gorso v. Bell Equipment Corporation

376 F. Supp. 1027, 1974 U.S. Dist. LEXIS 8177
CourtDistrict Court, W.D. Pennsylvania
DecidedJune 7, 1974
DocketCiv. A. 68-1356, 69-20, 69-21, 69-23, 70-1164, 70-1177 and 71-223
StatusPublished
Cited by5 cases

This text of 376 F. Supp. 1027 (Gorso v. Bell Equipment Corporation) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gorso v. Bell Equipment Corporation, 376 F. Supp. 1027, 1974 U.S. Dist. LEXIS 8177 (W.D. Pa. 1974).

Opinion

OPINION

JOHN L. MILLER, District Judge.

Now pending before the Court are the third-party defendants’ motions to dis *1029 miss the third party complaint for lack of jurisdiction over the person, insufficiency of process and insufficiency of service of process. A brief statement of the background of this litigation is necessary to our disposition of the motions.

The plaintiffs filed their respective complaints in diversity actions for personal injuries and in the case of The Marley Company for property and consequential damages they sustained when a Pignon Crane collapsed at a construction site near the Village of Huff, Indiana County, Pennsylvania. Relying upon the theory of strict liability, Restatement of Torts (2d) § 402A, the plaintiffs alleged defendant Bell, a national sales corporation engaged in selling construction cranes and similar equipment, sold a crane to The Marley Company in an unreasonably dangerous defective condition. Thereafter, Bell impleaded Societe de Construction Mecaniques du Bugey, the manufacturer of the crane, and Tichauer et Cie, the world wide sales agent who sold the crane to Bell f. o. b. Belley, France. Both third-party defendants are French enterprises not registered to do business in the Commonwealth of Pennsylvania nor did they maintain an office within the Commonwealth. Furthermore, at the time this crane was sold to Bell by Tichauer et Cie and by Bell to The Marley Company, Bell by contract with both French Corporations had the exclusive sales rights for the tower cranes in the United States of America and Puerto Rico. Motions to dismiss the impleaded defendants for lack of personal jurisdiction were filed and denied by Judge Knox with the issue certified for interlocutory appeal pursuant to 28 U.S.C. § 1292(b). The Court of Appeals accepted the appeal and after considering the evolution of the Pennsylvania “long-arm” statute 1 ; judicial interpretations of the 1968 amendment thereto; the statutory requirement of “doing business” within the Commonwealth; concluded the third-party defendants conducted insufficient activities within the Commonwealth as to satisfy the statutory prerequisites for the exercise of personal jurisdiction. Consequently, it held, “the district court erred in denying appellants Societe and Tichauer’s motion to dismiss for lack of personal jurisdiction.” Gorso v. Bell Equipment Corporation, 476 F.2d 1216, 1223 (3 Cir. 1973). The appeals court in note 6 acknowledges amendment of the “long-arm” statute effective February 15, 1973, and disposed of Bell’s argument it had made effective service under the terms of the new statute by stating, “ [w] e do not believe that ineffective service under the old statute can be validated merely by the subsequent passage of a new jurisdictional statute with more inclusive provisions. Since Bell has not attempted service under the new statute,” the appellate court commented, “we need not consider any remaining issues on retroactive versus prospective application nor on the constitutional efficacy of such service if made.” Id.

Mindful of the Court’s comments as to service under the new “long-arm” statute, the third-party plaintiff moved and was granted leave to join Societe and Tichauer on May 21, 1973. Service of process was made by certified mail on the Secretary of the Commonwealth on June 7, 1973, and on the Department of State July 30, 1973, with service by registered mail to the third-party defendants on July 31, 1973. It is as a result of these latest events that the impleaded third-party defendants move to dismiss for lack of personal jurisdiction and sufficiency of process. The third-party defendants argue the amendments to the Pennsylvania “long-arm” statute, 2 defining in more liberal terms what constitutes doing business by foreign corporations has no retroactive effect to an action initiated against them in October *1030 1970; they aver the decision of the Court of Appeals unappealed from constitutes the law of the case; next they maintain if the amended long-arm statute were applied to them, it would be an unconstitutional denial of due process because of their minimum business contacts with the Commonwealth of Pennsylvania; and lastly, they claim the amended long-arm statute is unconstitutional as enacted because of a distinction made between non-qualified foreign corporations and non-resident individuals in that the amendments apply to the latter class only on or after August 30, 1970.

In Benn v. Linden Crane Company, 370 F.Supp. 1269 (E.D.Pa.1973), the Court considered the applicability of the new Pennsylvania “long-arm” statute in a factual setting similar to the instant case. The cause of action arose and the complaint was filed prior to the effective date of the “long-arm” statute. Re-service was made after the effective date of the statute which was challenged by the defendant foreign corporation. Thus, at issue was whether the validity of the re-service is governed by 15 P.S. § 2011, the law in effect at the time of the accrual of the cause of action and filing of the complaint, or 42 P.S. § 8301 et seq., the law in effect at the time re-service was made. The Court, after reviewing and considering the background of judicial precedent on the issue concluded “that the new ‘long-arm’ statute is procedural * * * [it] governs the validity of the re-service in this case as it is the law in effect at the time re-service was made.” Id. 1274.

We see little, if any, distinction between the situation in Benn and the instant case of an impleaded third-party defendant foreign corporation. We are in agreement with the Court in Benn that the new Pennsylvania “long-arm” statute is procedural and conclude that it governs the validity of the re-service as it was the law in effect at the time re-service was made. To the persuasive and well-reasoned opinion in Benn, we would add only the following observations of the Pennsylvania Supreme Court in Myers v. Mooney Aircraft, Inc., 429 Pa. 177, at page 183, 240 A.2d 505 at page 509 (1967):

“Statutes which are designed to change the mode of judicial procedure, where such change relates to the method of enforcing a right and does not affect the right itself, are construed to apply to causes of action which accrued before enactment as well as to those to accrue thereafter.”;

and, in Wenzel v. Morris Dist. Co., Inc., 439 Pa. 364 at page 371, 266 A.2d 662, at page 666 (1970):

“This Court has long since recognized that ‘[t]he purpose of the Act * * * [the Business Corporation Law] is to bring foreign corporations doing business in this State within the reach of legal process.

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Bluebook (online)
376 F. Supp. 1027, 1974 U.S. Dist. LEXIS 8177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorso-v-bell-equipment-corporation-pawd-1974.