Howard v. Chesapeake & Ohio Railway Co.

11 App. D.C. 300, 1897 U.S. App. LEXIS 3126
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 1, 1897
DocketNo. 657
StatusPublished
Cited by4 cases

This text of 11 App. D.C. 300 (Howard v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. Chesapeake & Ohio Railway Co., 11 App. D.C. 300, 1897 U.S. App. LEXIS 3126 (D.C. Cir. 1897).

Opinion

Mr. Justice Shepard

delivered the opinion of the Court:

The judgment appealed from can not be sustained upon the ground that the court below had no jurisdiction over the defendant, because it was a foreign corporation. The marshal’s return of service upon C. EL Chapin, agent of the defendant in the District of Columbia, follows the statute providing for the service of process upon foreign corporations (R. S. D. C., Sec. 790), and makes a prima jade case of “doing business in the District” as well as of the agency of the party so served. The defendant’s pleas raised the only points in respect of the jurisdiction of the court that could operate in a case like this, namely, that the court had not acquired jurisdiction of the foreign corporation because it was not doing business in the District of Columbia at the time of the service of the writ; and the party served as its agent therein was not such an agent as to give jurisdiction through that service. Having jurisdiction of the subject-matter of the suit, the court could unquestionably render a binding judgment against the defendant, though a foreign corporation, upon service had in compliance with the provisions of the statute and founded on the existence of the conditions therein prescribed, or upon its general appearance, by competent authority, to defend the action. Goldey v. Morning News, 156 U. S. 518.

Section 790, supra, was intended merely to remedy an existing mischief by providing a simple and effectual way through which a foreign corporation doing business in the District of Columbia might be brought “before the court” and compelled to answTer. It does not undertake to limit the general jurisdiction of the courts of the District, and can not be construed as preventing their jurisdiction from attaching in any case where a foreign corporation might, [334]*334like a natural person resident elsewhere, appear by competent authority and answer the cause of action.

The remarks made in Ambler v. Archer, 1 App. D. C. 94, 106, in respect of the jurisdiction of causes of action against foreign corporations must be taken in application to the’ facts of that case. As stated in the opinion; that case “ involved the question of the liability of a foreign corporation to be sued and called to account in the courts of tjiis District for and in respect of all their corporate transactions occurring in other jurisdictions.” Id., p. 99. It has been generally held, and for reasons that are obvious, that no courtQwill take jurisdiction to exercise visitatorial power over a foreign corporation, or to regulate its internal affairs. Clark on Corp. 639; Taylor Corp., Sec. 392.

The defendant had the right to appear specially, as it did in the first instance, and controvert the jurisdiction; and none of its rights were thereby waived. Goldey v. Morning News, 156 U. S. 518, 525. Consequently, when its pleas were stricken out and judgment by default rendered, it could have appealed and tested the soundness of that ruling. But instead of adopting that course, it moved the court to set aside the default, and that motion was granted upon condition that it should plead the general issue. The acceptance of the condition worked an abandonment of the pleas attacking the jurisdiction and the validity of the service of the writ, and had the court erred in striking them out, the defendant would be estopped to question the soundness of the ruling. Railroad Co. v. Brown, 17 Wall. 445, 450.

Moreover, conceding the view of the operation of the statute aforesaid contended for by the appellee, the jurisdiction of the court was, nevertheless, complete. Defendant had for years maintained an office in the District, where, represented by a resident agent, it was engaged in business. Disregarding the lease made by the defendant to the Newport News and Mississippi Valley Company, which will' be [335]*335discussed later, that office and agency remained unchanged at the time of the appointment of the receiver by the courts of Virginia and West Virginia. The decrees of those courts could not operate a transfer of the property of the defendant in the District of Columbia, and the receiver appointed by them had no authority that must be respected here. Booth v. Clark, 17 How. 322; see also Brigham v. Ludington, 12 Blatch. 237, 242; Day v. Postal Tel. Co., 66 Md. 354, 360; T. & P. R. Co. v. Gay, 86 Tex. 571, 597; Filkins v. Nunnemacher, 81 Wis. 91; Farmers' and Merchants’ Ins. Co. v. Needles, 52 Mo. 17.

What has been said above must be confined to the point actually ruled, which is that the decree of the Virginia court had no effect as such within the District of Columbia, and could not itself operate a transfer of the property of the defendant situated therein. There may probably be cases in which the courts of the District would, upon application and for good cause, recognize the receiver appointed by the court of a State and permit him to become a party to litigation affecting the estate or fund or interests that might be under his management; but that question will not now be decided.

Notwithstanding, then, the appointment of the receiver, the defendant remained in existence as a corporation, not only here, but in the State of its creation also; and although it may have admitted the Virginia receiver into the occupation of its office in the District, it does not follow necessarily that it abandoned its property, ceased its corporate business entirely, discharged its former agent and left the District. The mere employment of the defendant’s general agent by the receiver did not of itself operate his discharge from its representation. There is nothing irreconcilable in his service of both the defendant and the receiver; and there was nothing to prevent them from co-operating, if they saw proper, in the management of the business. R. Co. v. Brown, 17 Wall. 445, 450; P. R. Co. v. Jones, 155 U. S. 333, 350.

2. In respect of the plea of limitation, we are of the opin[336]*336ion that the amended declaration, though filed more than three years after the accrual of the cause of action, did not open the case to that bar. The possession of a valid ticket over defendant’s lines of railway entitled Laura P. Howard, as holder thereof, no matter from whom purchased, to all the rights of a passenger and charged the defendant with all the ordinary duties of a common carrier. Sleeper v. Pa. R. Co., 100 Pa. St. 259. For the breach of the contract, or the failure of the duty assumed thereunder, the plaintiffs cohld declare in the form of assumpsit or in tort. We do not think it necessary to follow counsel in their critical examination of the precise nature of the form of the action as disclosed by the terms of the original and amended declarations, both of which are fairly set out in the statement of the case. It is sufficient to say that the original is in assumpsit, and that the amendment seems not to depart substantially from it. The rule in respect of amendments that prevails in our practice is both liberal and just. Magruder v. Belt, 7 App. D. C. 303, 312; Morris v. Wheat, ante, p. 201.

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Bluebook (online)
11 App. D.C. 300, 1897 U.S. App. LEXIS 3126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-chesapeake-ohio-railway-co-cadc-1897.