H. Alpers & Associates v. Omega Precision Hand Tools, Inc.

62 F.R.D. 408, 18 Fed. R. Serv. 2d 669, 1974 U.S. Dist. LEXIS 9464
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 19, 1974
DocketCiv. A. No. 73-2427
StatusPublished
Cited by18 cases

This text of 62 F.R.D. 408 (H. Alpers & Associates v. Omega Precision Hand Tools, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. Alpers & Associates v. Omega Precision Hand Tools, Inc., 62 F.R.D. 408, 18 Fed. R. Serv. 2d 669, 1974 U.S. Dist. LEXIS 9464 (E.D. Pa. 1974).

Opinion

OPINION

LUONGO, District Judge.

This is a motion under F.R.C.P. 12(b) by defendant Omega Precision Hand Tools, Inc. (Omega), a New York corporation, to dismiss the complaint of plaintiff H. Alpers & Associates (Alpers) for lack of jurisdiction and insufficiency of service of process. For the reasons enumerated below, the motion to dismiss will be denied.

Omega manufactures and sells hand tools. It is neither registered to do business in Pennsylvania, nor does it maintain an office in Pennsylvania. Al-pers is a Pennsylvania corporation. By a written agreement dated July 3, 1968, Omega appointed Alpers as its exclusive sales representative in several states, including Pennsylvania. The agreement provided it would be effective as long as Omega received “adequate distribution” in the named territory. “Adequate distribution” was defined as 5% of Omega’s total dollar volume. There was no other provision in the agreement relating to termination.

By letter dated September 6, 1973, Omega terminated Alpers’ agency. The termination letter expressed no reason for the termination other than Omega’s desire to reduce costs by using its own “in house” sales force to replace regional representatives. On October 25, 1973, Alpers filed this suit seeking damages for breach of contract. On November 19, process was served by the United States Marshal on an employee of Omega at Omega’s office in Queens, New York. On December 13, Omega moved to quash the return of service on the ground that the court lacked jurisdiction over it. Thereafter, on January 17, 1974, Alpers made service by registered mail on the Secretary of the Commonwealth of Pennsylvania, as provided by [410]*410the Pennsylvania long-arm statute, 42 P.S. §§ 8302, 8307.1 Omega was served by registered mail on January 21, 1974.

Omega’s position is that the court lacks jurisdiction over it since it is a foreign corporation which is not “doing business” in Pennsylvania within the meaning of the Pennsylvania long-arm statute. 42 P.S. § 8301 et seq. 42 P.S. § 8309(a) provides that the following, inter alia, shall constitute “doing business:”

“(1) The doing by any person in this Commonwealth of a series of similar acts for the purpose of thereby realizing pecuniary benefit or otherwise accomplishing an object.
# & if 'X1
“(3) The shipping of merchandise directly or indirectly into or through this Commonwealth.”

There is ample evidence in the pleadings that Omega was “doing business” in Pennsylvania at the time the contract was terminated and continues to do business here. Under the exclusive agency agreement2 between the parties, Alpers represented, and systematically solicited business for, Omega in Pennsylvania. In the letter of termination, Omega stated its intention to continue the sales work done by Alpers in Pennsylvania except that it would use “its own people.” This is not a case in which the' foreign corporation’s contact with Pennsylvania is limited to placing into the “stream of commerce” products which eventually find their way into Pennsylvania. Compare McCrory Corp. v. Girard Rubber Corp., 225 Pa.Super. 45, 307 A.2d 435 (1973). From the pleadings already in the record, it is clear that Pennsylvania was a regular and significant area of sales for Omega, which satisfies the “doing business” test of § 8309(a)(1),3 and that pursuant [411]*411to that sales activity Omega products were regularly shipped into Pennsylvania, either directly to the buyers or indirectly through Alpers, either of which satisfies the test of § 8309(a)(3).4

In short, Omega is subject to this court’s jurisdiction by virtue of the Pennsylvania long-arm statute. The question remains whether Omega has been properly served with process. F. R.C.P. 4(f) defines the territorial limits of effective process by providing that “all process other than a subpoena may be served anywhere within the territorial limits of the state in which the district court is held, and, when authorized by a statute of the United States or by these rules, beyond the territorial limits of that state.” Rule 4(f), read in conjunction with 4(d)(7)5 authorizes service beyond state territorial boundaries as state law permits. The Pennsylvania long-arm statute, 42 P.S. §§ 8302 and 8307, provides for service by registered mail upon the Department of State as agent for foreign corporations doing business in Pennsylvania. The service made by the United States Marshal on Omega at its office in New York was ineffective since it was beyond the territorial limits of Pennsylvania.6 and aecordingly will be quashed. The second service, however, on January 17, 1974, was proper. Service by registered mail upon the Department of State, with a copy by registered mail to Omega at its business address, complied with the provisions of 42 P.S. § 8307, and was therefore an extraterritorial service authorized by state law. See- F.R.O.P. 4(d)(7). Omega does not dispute this, but argues that the second service should be quashed nonetheless because an excessive amount of time had elapsed between the filing of the complaint and the service.

The Rules do not specify a time period within which process must be served after a complaint is filed. In the absence of a fixed standard, courts have undertaken to inquire on an ad hoc basis whether the plaintiff has “exercise [d] due diligence to perfect service after the filing of the complaint,” Elizabethtown Trust Co. v. Konschak, 267 F. Supp. 46, 48 (E.D.Pa.1967) and whether, if there has been delay in effecting service, the delay has “substantially prejudiced the defendant.” Ashland Oil & Refining Co. v. Hooker Chemical Corp., 51 F.R.D. 512, 514 (S.D.Ohio 1970); Wright & Miller, Federal Prac[412]*412tice & Procedure, § 1086. Generally, in the cases in which complaints have been dismissed for delay, the delay in effecting service was far greater than is here involved. See, e. g., Elizabethtown, supra (6 year delay); Schram v. Holmes, 4 F.R.D. 119 (E.D.Mich.1943) (9 months); Hoffman v. Wair, 193 F. Supp. 727 (D.Or,1961) (6 years); Richardson v. White Shipping Co., 38 F.R.D. 494 (N.D.Cal.1965) (28 months). Where the delay has been two and one-half or three months, as in the instant case, courts have refused to dismiss the complaint. Ashland, supra; Den Heijher v. Erie R. R. Co., 23 F.R.D. 217 (S.D.N.Y.1959).

It is theoretically possible, of course, that a comparatively brief delay could reflect a lack of diligence on the part of plaintiff or impose a singular hardship on the defendant in a particular case, but Omega does not present such a case. Alpers erred in its first attempt to serve process on Omega, but it corrected the error within a relatively short period of time. More important, Omega has suffered no hardship from the delay. This action involves a straightforward breach of contract claim. If Omega proposes to defend on the ground that Alpers’ performance was not “adequate,” evidence relevant to this issue should be under Omega’s control in the form of company records recording overall sales and the sales through Alpers’ distributorship.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Boykin v. Commerce Union Bank
109 F.R.D. 344 (W.D. Tennessee, 1986)
Shuster v. Conley
107 F.R.D. 755 (W.D. Pennsylvania, 1985)
Baranski v. Serhant
602 F. Supp. 33 (N.D. Illinois, 1985)
Verri v. State Automobile Mutual Insurance
583 F. Supp. 302 (D. Rhode Island, 1984)
Peters v. E.W. Bliss Co.
100 F.R.D. 341 (E.D. Pennsylvania, 1983)
Curtis v. Diversified Chemicals & Propellants Co.
440 A.2d 747 (Supreme Court of Rhode Island, 1982)
Meshkov v. Abington Township
517 F. Supp. 1280 (E.D. Pennsylvania, 1981)
Couch v. Kanfer (In Re Kanfer)
1 B.R. 91 (N.D. Georgia, 1979)
School Committee v. Duprey
391 N.E.2d 925 (Massachusetts Appeals Court, 1979)
Ingram v. Kumar
585 F.2d 566 (Second Circuit, 1978)
Lloyd v. Industrial Bio-Test Laboratories, Inc.
454 F. Supp. 807 (S.D. New York, 1978)
Housworth v. Glisson
485 F. Supp. 29 (N.D. Georgia, 1978)
Controlled Metals, Inc. v. Non-Ferrous International Corp.
410 F. Supp. 339 (E.D. Pennsylvania, 1976)
Trachtman v. T. M. S. Realty & Financial Services
393 F. Supp. 1342 (E.D. Pennsylvania, 1975)
Laurel Equipment Co. v. Rig & Crane Equipment Rental, Inc.
69 Pa. D. & C.2d 723 (Montgomery County Court of Common Pleas, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
62 F.R.D. 408, 18 Fed. R. Serv. 2d 669, 1974 U.S. Dist. LEXIS 9464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-alpers-associates-v-omega-precision-hand-tools-inc-paed-1974.