Hoffman v. Washington-Virginia Railway Co.

44 App. D.C. 418, 1916 U.S. App. LEXIS 2615
Court of Appeals for the D.C. Circuit·Decided February 7, 1916·No. No. 2868·Published·Cited by 6 cases

Opinion

Mr. Justice Eobb

delivered the opinion of the Court:

The appellant, Emma J. Hoffman, commenced an action in the supreme court of the District against the appellees, the Washington-Virginia Eailway Company, a corporation, the Washington Utilities Company, a corporation, and The Washington-Virginia Eailway Company, a corporation, for a tort .alleged to have been committed in Virginia. Service was made upon the treasurer of the appellees. The Washington-Virginia Eailway Company and the Washington Utilities Company appeared specially and moved to vacate the return. The court, “having heard the evidence submitted by the parties and the [421] arguments of counsel,” found from the evidence that at the time of service the Washington-Virginia Railway Company, organized about April 15, 1913, and the Washington Utilities Company, “each severally had and maintained a place of business in the District of Columbia, and at said time each severally was doing business in the District of Columbia.” The court further found that each of said companies was a foreign corporation under the laws of Virginia, and residing therein; that the Washington-Virginia Railway Company, organized about June 22, 1910, was a foreign corporation organized under the laws of Virginia, and that it was merged in the said Washington Utilities Company on or about the 26th of November, 1912. In other words, at the time of service there were, in fact, but two companies. The court further found that the appellant was a resident of the State of Virginia at the time of the institution of her suit, as well as at the date of the cause of action stated in her declaration, and that the said cause of action did not arise within the District of Columbia. These findings of fact are not challenged here.

The question to be determined is whether the supreme court of the District has jurisdiction of an action brought by a resident of Virginia against a Virginia corporation having a place of and doing business in this District through its regularly appointed agents, upon whom the summons is served for a transitory cause of action arising outside the District. In view of the decisions of the Supreme Court of the United States, we had supposed that this question was not longer open to doubt.

See. 1537 of the Code provides [31 Stat. at L. 1419, chap. 854] : First, that in actions against foreign corporations “doing business in the District all process may be served” on the agent of such corporation or person conducting its business, or, in case he is absent and cannot be found, by leaving a copy at the principal place of business in the District, etc.; and, second, that when a foreign corporation “shall transact business” in the District without having any place of business or resident agent therein, service may be made upon any officer or agent or employee, “as to suits growing out of contracts entered into [422] or to be performed in whole or in part in the District of Columbia, or growing out of any tort heretofore or hereafter committed in the said District.” In this section Congress clearly has recognized the distinction made by the,Supreme Court of the United States between the doing of business within a State at a place regularly established therefor, and the intermittent transaction of business through agents who come and go. Notwithstanding that a corporation is deemed to be -a resident of the State of its creation, if it goes within another State or jurisdiction, and there establishes a place of business from which, through, its authorized agents, its business is transacted, it must be regarded as also within that jurisdiction. International Harvester Co. v. Kentucky, 234 U. S. 579, 583, 58 L. ed. 1479, 1481, 34 Sup. Ct. Rep. 944. .In that case the court (p. 589) said: “We are satisfied that the presence of a corporation within a State, necessary to the service of process, is shown when it appears that the corporation is there carrying on business in such sense as to manifest its presence within the State.” And when a corporation has thus “manifested its presence” within another State, it is as much liable to the service of process there in a transitory action as would be an individual. Dennick v. Central R. Co. 103 U. S. 11, 26 L. ed. 439; Texas & P. R. Co. v. Cox, 145 U. S. 593, 36 L. ed. 829, 12 Sup. St. Rep. 905; Connecticut Mut. L. Ins. Co. v. Spratley, 172 U. S. 602, 43 L. ed. 569, 19 Sup. Ct. Rep. 308; Herndon-Carter Co. v. James N. Norris, Son & Co. 224 U. S. 496, 56 L. ed. 857, 32 Sup. Ct. Rep. 550; St. Louis Southwestern R. Co. v. Alexander, 227 U. S. 218, 57 L. ed. 486, 33 Sup. Ct. Rep. 245, Ann. Cas. 1915B, 77; International Harvester Co. v. Kentucky, 234 U. S. 579, 58 L. ed. 1479, 34 Sup. Ct. Rep. 944; and Washington-Virginia R. Co. v. Real Estate Trust Co. 238 U. S. 186, 59 L. ed. 1265, 35 Sup. Ct. Rep. 818. In the case last cited, the Washington-Virginia Railway Company, one of the appellees here, was sued in the United States district court for the eastern district of Pennsylvania upon certain bonds, the payment of which it was alleged to have assumed. The question of jurisdiction was raised there, as here. The court, after stating the facts, said: [423] “We think the mere recital of these facts makes it evident that the corporation was properly served. It had submitted itself to the local jurisdiction, and there enjoyed the protection of the laws. In that jurisdiction by duly authorized agents it was at the time of service transacting an essential and material part of its business.”

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Hoffman v. Washington-Virginia Railway Co., 44 App. D.C. 418, 1916 U.S. App. LEXIS 2615 (D.C. Cir. 1916).

44 App. D.C. 418 (Hoffman v. Washington-Virginia Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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