International Union of Mine, Mill & Smelter Workers v. Tennessee Copper Co.

31 F. Supp. 1015, 5 L.R.R.M. (BNA) 914, 1940 U.S. Dist. LEXIS 3529
CourtDistrict Court, E.D. Tennessee
DecidedJanuary 17, 1940
Docket81
StatusPublished
Cited by5 cases

This text of 31 F. Supp. 1015 (International Union of Mine, Mill & Smelter Workers v. Tennessee Copper Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union of Mine, Mill & Smelter Workers v. Tennessee Copper Co., 31 F. Supp. 1015, 5 L.R.R.M. (BNA) 914, 1940 U.S. Dist. LEXIS 3529 (E.D. Tenn. 1940).

Opinion

DARR, District Judge.

This action involves a labor dispute. The plaintiffs, labor organizations, and some individual members, seek to enjoin the defendants, the employing company, certain state officials, and an individual *1017 who is an official of the company, from continuing certain alleged wrongs which plaintiffs claim invade their civil and property rights.

All the defendants have filed motions to dismiss the complaint upon several grounds. ’ The several motions and the several grounds will be taken up in what appears to be their logical order.

The defendant Carl Townson, sheriff of Cherokee county, North Carolina, and the defendant Claude Collins, sheriff of Fannin county, Georgia, move to quash the service and dismiss the action against them because service was had outside of this district and in other states.

Each of these defendants was served in the county and state of his residence. The service was by an acknowledgment of service by each defendant. This would make no difference and would stand the same as if the service had been made by a proper officer. The acknowledgment of the service of the summons did not waive the right to raise the question of want of proper service. Camp et al. v. Gress, 250 U.S. 308, 39 S.Ct. 478, 63 L.Ed. 997.

In this kind of case the service provided is under Section 51 of the Judicial Code, 28 U.S.C.A. '§ 112, and, as pertinent here, the provision is as follows: “ * * * no civil suit shall be brought in any district court against any person by any original process or proceeding in any other district than that whereof he is an inhabitant.”

But the plaintiffs contend that there was a continuance had on application of these defendants and that this was an entry of a general appearance in the case. There is nothing in the record or on the minutes to indicate a continuance of this hearing. I recall that there was a postponement of the hearing, as I understood, upon the agreement of counsel. This being the situation, I think the continuance, if any were had, would not affect the rights of these defendants to raise the question.

It is my judgment that the service on each of these defendants outside of this district, and in another state, is void and, therefore, the service is quashed and the complaint dismissed as to these defendants.

The defendant Tennessee Copper Company contends in its motion that it is a corporation organized under the laws of the state of New Jersey and is not an inhabitant or resident of this district or of the State of Tennessee.

I think that jurisdictional grounds alleged in the complaint is not diversity of citizenship, but is upon violation of the Constitution and federal laws. This being true, I think that venue is fixed by that part of Section 51 of the Judicial Code which is again quoted, as follows: “ * * no civil suit shall be brought in any district court against any person by any original process or proceeding in any other district than that whereof he is an inhabitant.”

The authorities are almost uniform in holding that a corporation is an inhabitant of the state which grants its charter. Sufficient to cite: Luckett v. Delpark, Inc., et al., 270 U.S. 496, 46 S.Ct. 397, 70 L.Ed. 703; Bumrite Coal Briquette Company v. Riggs, 274 U.S. 208, 211, 47 S.Ct. 578, 71 L.Ed. 1002.

But the authorities hold that a corporation may consent to be sued in states other than the state in which it is incorporated by reason of the manner in which it domesticates in the foreign state. One of these authorities is a very recent case. Neirbo Company et al. v. Bethlehem Shipbuilding Corp., Ltd., 60 S.Ct. 153, 84 L.Ed. -, Supreme Court Opinion, November 22, 1939; In re Schollenberger, 96 U.S. 369, 24 L.Ed. 853.

While these cases were decided on jurisdiction obtained or sought to be obtained by diversity of citizenship, I see no difference in the question of whether or not a corporation is a resident or inhabitant if jurisdiction is sought on other grounds. Seaboard Rice Milling Co. v. Chicago, R. I. & P. R. Co., 270 U.S. 363, 46 S.Ct. 247, 70 L.Ed. 633.

These cases were also based upon the idea of consent by reason of the corporation having designated an agent upon which process could be served as required by the statute of the state in which it domesticated.

In the case at bar, the defendant Tennessee Copper Company did not have a statutory agent and service was had upon a general agent of the corporation in this district. It is contended by this defendant that the Tennessee statute did not require it to have a statutory agent upon which service could be had, and the plaintiffs contend that it is such corporation. I think *1018 this is immaterial as will be shown by the statements following.

This defendant corporation did domesticate in Tennessee under the Tennessee statute. It is doing business in Tennessee and maintains an agency and local officers in this state. When a corporation from a foreign state domesticates under the Tennessee law, it agrees to the following provisions of the Tennessee statute: “When such foreign corporation shall have duly complied with the provisions of the foregoing sections, then it shall be entitled to all the privileges, rights, immunities, and subject to the liabilities of corporations organized and chartered under the laws of this state.” Williams’ Code, Section 4127.

It results that when this corporation domesticated under Tennessee laws, it consented to be, “subject to the liabilities of corporations organized and chartered under the laws of this state.”

This seems to me to be as plain consent to be sued as if the statutory agent had been designated. Certainly this corporation could be sued in the state courts. This would also give consent to be sued in the federal courts in this state. Neirbo Company et al. v. Bethlehem Shipbuilding Corp., Ltd., supra; In re Schollenberger, 96 U.S. 369, 24 L.Ed. 853.

Therefore, I think the service against the Tennessee Copper Company is good and this part of their motion will be overruled.

The contention is made by each of the defendants in their motions to dismiss to the effect that there is no merit in the complaint to justify the relief sought.

The plaintiffs claim that the action of the defendants has violated and will violate certain of their constitutional rights. The complaint sets out that the violation of the rights of the plaintiffs are those contained in the First, Fourth, and Fourteenth Amendments to the Constitution of the United States.

The First Amendment has to do, so far as this case is concerned, with the freedom’ of speech and freedom of the press. But this Amendment is only a restriction upon Congress and does not effect the states or the citizens of the states.

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Bluebook (online)
31 F. Supp. 1015, 5 L.R.R.M. (BNA) 914, 1940 U.S. Dist. LEXIS 3529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-of-mine-mill-smelter-workers-v-tennessee-copper-co-tned-1940.