Home Gas & Fuel Co. v. Mississippi Tank Co.

143 So. 2d 641, 1962 La. App. LEXIS 2183
CourtLouisiana Court of Appeal
DecidedJune 13, 1962
Docket564
StatusPublished
Cited by17 cases

This text of 143 So. 2d 641 (Home Gas & Fuel Co. v. Mississippi Tank Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Gas & Fuel Co. v. Mississippi Tank Co., 143 So. 2d 641, 1962 La. App. LEXIS 2183 (La. Ct. App. 1962).

Opinion

143 So.2d 641 (1962)

HOME GAS & FUEL CO., Inc., et al., Plaintiffs-Appellants,
v.
MISSISSIPPI TANK CO., Inc., et al., Defendants-Appellees.

No. 564.

Court of Appeal of Louisiana, Third Circuit.

June 13, 1962.

Polk, Foote & Neblett, by William P. Polk, Alexandria, Stafford & Pitts, by John Pitts, Alexandria, for plaintiffs-appellants.

George J. Ginsberg, Alexandria, for defendants-appellees.

Before FRUGE, SAVOY, and HOOD, JJ.

FRUGE, Judge.

The plaintiff, Home Gas & Fuel Company, sustained certain property damages on November 21, 1960 resulting from a fire which occurred on its premises located in Rapides Parish. Plaintiff alleges in its petition that the fire was the result of the negligence of the defendant, Mississippi Tank Company, a Mississippi corporation, in failing to equip a butane delivery truck with a safety device known as an excess flow valve. Suit was filed against the Mississippi Tank Company and its liability insurer. As the Mississippi Tank Company had not qualified to do business in the State of Louisiana, and had not appointed an agent for service of process, service was made on the Secretary of State in Louisiana.

The Mississippi Tank Company filed with the Court an exception to the jurisdiction *642 alleging that as it carried on no business in the State of Louisiana, the district court was without jurisdiction both in personam and in rem. The matter was submitted to the trial court wherein the exception was sustained and accordingly, the defendant, Mississippi Tank Company, was dismissed as a party defendant. Plaintiff has appealed from that judgment.

Since the defendant, Mississippi Tank Company, Inc., has not appointed an agent for service of process in the State of Louisiana, and since plaintiff strongly contends that defendant transacted business in this state, the question of whether or not the court has jurisdiction thus becomes a question of whether or not the defendant "has engaged in a business activity in this state" according to LSA-R.S. 13:3471 (1960).

The Federal Courts, as well as the courts of this state, have consistently held that this is a question of fact and is to be determined according to the facts of each individual case rather than by the application of fixed, definite and precise rules.

In Calcote v. Century Indemnity Company, La.App., 93 So.2d 271, the court said:

"Courts of this State [may] entertain jurisdiction in suits against foreign corporations actually doing some business in the state, even though such business would not have subjected the corporation to the taxing power of the State, or forced it to apply for a license here."

In Wyss v. Good Hope Placers, La.App., 106 So.2d 10, the court held:

"Our Louisiana law provides for jurisdiction over those foreign corporations which are under legal obligation to register for doing business in the State of Louisiana but which have not done so."

In the leading case of People's Tobacco Company v. American Tobacco Company, 246 U.S. 79, 38 S.Ct. 233, 62 L.Ed. 587, it was held:

"Business must be of such nature and character as to warrant the inference that the corporation has subjected itself to the local jurisdiction. * * * Each case depends upon its own facts."

In King v. American Tank & Equipment Corp., La.App., 144 So. 283, the court stated:

"When a foreign corporation undertakes to transact business in a state other than that in which it is incorporated, it submits itself to the authority of the courts of such other state and is bound by the statutory provisions respecting the method of such courts obtaining jurisdiction over it."

More recently in International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, the Court decided that:

"* * * [D]ue process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'" Id., 326 U.S. at page 316, 66 S.Ct. at page 158.

Looking back over this long history of litigation a trend is clearly discernible toward expanding the permissible scope of state jurisdiction over foreign corporations and other nonresidents. In part this is attributable to the fundamental transformation of our national economy over the years. Today many commercial transactions touch two or more states and may involve parties separated by the full continent. With this increasing nationalization of commerce has come a great increase in the amount of business conducted by mail across state lines. At the same time modern transportation and *643 communication have made it much less burdensome for a party sued to defend himself in a state where he engages in economic activity.

In XVI Louisiana Law Review 431 we find a discussion of "jurisdiction over foreign corporation" and "what constitutes doing business". The writer of this article states:

"In International Shoe Co. v. Washington, [326 U.S. 310, 318, 66 S.Ct. 154, 90 L.Ed. 95 (1950)], the Supreme Court repudiated any notion that it was limited to those factors in determining jurisdiction. In that case, the test laid down to meet the jurisdictional requisites of due process was that the foreign corporation have sufficient contacts or ties with the state of the forum to make it reasonable and just according to the court's traditional conception of fair play and substantial justice to permit the state to invoke its jurisdiction. To illustrate the application of this test, one federal court held a foreign corporation subject to the jurisdiction of the state's court where the corporation's representatives carried on a systematic sales promotion campaign although no sales were consummated within the state. Defendants' out-of-state sales to local residents, however, comprised a substantial part of its business. On the other hand, another federal court held that where a foreign insurance company issued but a single policy through a Louisiana broker to a Louisiana resident, it constituted an isolated act short of doing business and did not give the state jurisdiction over the foreign corporation. In a case decided prior to International Shoe Co. and similar in facts to the instant decision, a Colorado court held that advertising by a foreign insurance company through a radio broadcasting station within the state was `doing business' so as to subject the company to the jurisdiction of the state court. For some years the company had advertised over a Colorado radio station and as a result issued numerous policies to Colorado residents. The court stated that although the company's method of attracting the attention of the public was perhaps unique and assuredly modern, the manner in which it proceeded was not essentially different from that used by other companies to obtain business from Colorado residents.
"In the instant case the court recognized the principle that solicitation of business in and of itself does not subject a foreign corporation to the local forum. What additional activities beyond solicitation would meet the test of doing business was left open by the court.

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Bluebook (online)
143 So. 2d 641, 1962 La. App. LEXIS 2183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-gas-fuel-co-v-mississippi-tank-co-lactapp-1962.