Harrub v. Hy-Trous Corporation

31 So. 2d 567, 249 Ala. 414, 1947 Ala. LEXIS 382
CourtSupreme Court of Alabama
DecidedJuly 31, 1947
Docket6 Div. 543.
StatusPublished
Cited by3 cases

This text of 31 So. 2d 567 (Harrub v. Hy-Trous Corporation) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrub v. Hy-Trous Corporation, 31 So. 2d 567, 249 Ala. 414, 1947 Ala. LEXIS 382 (Ala. 1947).

Opinion

LAWSON; Justice.

This suit was instituted in Jefferson County, Alabama, by C. N. Harrub, E. M. *416 Noble, and Jessie A. Evans, partners doing business as Hy-Trous Company of Tennessee, against the Hy-Trous Corporation, a corporation, to recover damages for the alleged breach of an exclusive agency contract, whereby the plaintiffs were constituted and appointed the exclusive agent of the defendant corporation to manufacture, sell, and distribute a certain liquid fertilizer, known as “Hy-Trous Scientific Plant Food,” in and for eight southeastern states, including the state of Alabama.

The complaint consisted of two counts and was filed on April 30, 1945. Sheriff’s return as to service of summons and complaint was as follows: “Executed this the 30 day of April, 1945, on The Hy-Trous Corporation a corporation by leaving a copy of within with J. J. Bourisk, Agent of said company.” •

On May 18, 1945, the defendant filed a plea in abatement, which plea was several times amended. As last amended the said plea read as follows:

“Now comes the defendant in the above styled cause, and appearing for the sole purpose of filing this plea in abatement, and for no other purpose whatsoever, and hereby expressly limiting its appearance herein for said sole purpose of filing this plea in abatement to the jurisdiction of this court, avers and shows unto the court as follows:

“The defendant, a corporation, organized and existing under the laws of the State of Maine, and at the time of the institution of this suit, at the time of the alleged service of the summons and complaint on this defendant, and at all intervening times, the defendant was not doing business by agent in Jefferson County, Alabama, nor in the State of Alabama.
“Defendant avers the defendant had never qualified to do business in the State of Alabama and had never designated an agent in Alabama upon whom service of process could be made in all actions instituted against it.
“Wherefore: The defendant says that this Honorable Court has no jurisdiction of the defendant, nor of the alleged cause of action asserted herein.”

Plaintiffs, appellants,' interposed demurrer to the plea in abatement, which demurrer was overruled. Thereupon appellants filed replications 1 and 2. Defendant’s demurrer ff> replication 1 was sustained. Under replication 2 issue was joined on the plea in abatement. The trial of the issue thus presented was before the court and jury. ■ At the conclusion of testimony the court at the request of defendant gave the general affirmative charge in favor of defendant on its plea in abatement. The general affirmative charge requested by plaintiff was refused. The jury returned a verdict in favor of the defendant on its said plea in abatement and judgment in accordance with the verdict was rendered by the court. From such judgment plaintiffs have prosecuted this appeal.

Only two errors are assigned. First, that the trial court erred in giving the affirmative charge in favor of the defendant; second, that it was error for the trial court not to give the general affirmative charge as requested by plaintiff.

It appears without dispute that the defendant is a Maine corporation with its principal place of business in Boston, Massachusetts, and that it has not qualified to do business in Alabama. Hence Section 232 of the Constitution of this state and Section 192, Title 10, Code 1940, in so far as they provide a mode of service on foreign corporations, are not here applicable, as they have application only to such foreign corporations as have qualified thereunder. St. Mary’s Oil Engine Co. v. Jackson Ice & Fuel Co., 224 Ala. 152, 138 So. 834.

As a general rule, a nonresident, whether an individual or a corporation, is suable in the state courts upon a cause of the state, if service of process efficacious to give jurisdiction of the person can be perfected. St Mary’s Oil Engine Co. v. Jackson Ice & Fuel Co., supra; Ford Motor Co. v. Hall Auto Co., 226 Ala. 385, 147 So. 603.

The requirements as to perfection of service upon a foreign-corporation not qualified to do business in this state are *417 restated in the case of Davis v. Jones, 236 Ala. 684, 184 So. 896, 898, as follows: “The question of service, as to a foreign corporation, was again considered generally in the case of Ford Motor Co. v. Hall Auto Co., 226 Ala. 385, 147 So. 603, and the well recognized principles, supported by authorities, are therein announced. It was declared, (1) that a foreign corporation is suable within the state only if it is doing business therein; (2) that to sustain an action against a nonresident corporation, the court must have jurisdiction of the subject-matter and of the person acquired by service of process duly authorized by state statutes w-ithin the requirements of due process; (3) that, as regards suability, the corporation’s acts must be in the exercise of corporate functions, not merely within corporate powers; and (4) that the corporation must be doing business in the state when the process was served by the sheriff, not only when it was delivered to the sheriff.”

A foreign corporation not qualified to do business in this state can be present herein only through its acts performed by its officers or agents engaging in the performance of its corporate functions within this jurisdiction. If its presence is thus manifested, then process may be efficaciously served on any agent of the corporation who is acting within the line and scope of his agency. St Mary’s Oil Engine Co. v. Jackson Ice & Fuel Co., supra; Section 188, Title 7, Code 1940.

It is without dispute in the evidence that at the time of service of the summons and complaint the unqualified foreign corporation, which is the defendant in this cause, did not maintain an office or other business establishment in this state. None of its officers, salesmen, or other employees maintained a residence in this state. No salesmen operated in Alabama on a commission basis or otherwise. It rented no buildings, displayed no merchandise.

But it is also without dispute in the evidence that on April 30, 1945, J. J. Bourisk was the president of the defendant corporation and he was on that day, while in the city of Birmingham, served with a copy of the summons and corn-plaint in this case. Of course, the mere presence of the president of the defendant corporation in this state did not confer upon our courts jurisdiction of the defendant corporation. Sullivan v. Sullivan Timber Co., 103 Ala. 371, 15 So. 941, 25 L.R.A. 543.

Under the rule of pur cases the question is, therefore, presented as to whether or not at the time of service Mr. Bourisk, acting under authority, was engaged in the exercise of some of the functions for which the corporation was created or, in other words, exercising corporate functions as distinguished from corporate powers. Sullivan v. Sullivan Timber Co., supra; Ford Motor Co. v. Hall Auto Co., supra.

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

Related

Ex Parte Gauntt
677 So. 2d 204 (Supreme Court of Alabama, 1996)
Gauntt v. United Insurance Co. of America
677 So. 2d 204 (Supreme Court of Alabama, 1996)
State Farm Mutual Automobile Insurance v. Barrow
243 So. 2d 376 (Court of Civil Appeals of Alabama, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
31 So. 2d 567, 249 Ala. 414, 1947 Ala. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrub-v-hy-trous-corporation-ala-1947.