Kalthoff v. Deere and Company

161 N.W.2d 313, 281 Minn. 210, 1968 Minn. LEXIS 992
CourtSupreme Court of Minnesota
DecidedAugust 16, 1968
Docket40968
StatusPublished
Cited by2 cases

This text of 161 N.W.2d 313 (Kalthoff v. Deere and Company) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kalthoff v. Deere and Company, 161 N.W.2d 313, 281 Minn. 210, 1968 Minn. LEXIS 992 (Mich. 1968).

Opinion

Sheran, Justice.

Appeal from an order of the district court granting a motion of defendant Deere and Company to quash an affidavit of service and dismiss proceedings upon the ground that the attempted service of a summons upon that defendant was ineffectual.

The plaintiff’s cause of action is one for damages for personal injuries allegedly sustained while working on a Model 30 John Deere combine manufactured by defendant company. Although the complaint does not specifically allege facts showing that defendant committed a tort in whole or in part in Minnesota against a Minnesota resident, or that it made a contract with a resident of Minnesota to be performed in whole or in part by either party in this state, the attempted service of the summons and complaint was made, if at all, by an effort to comply with Minn. St. 303.13, subd. U3). 1

*212 On July 27, 1966, plaintiff’s counsel mailed a copy of the summons and complaint to the secretary of state of the State of Minnesota with the prescribed fee. The secretary of state on July 28, 1966, certified “that the within service of process was filed in this office on the 28th day of July, 1966, at 11:00 o’clock A. M. and a copy thereof forwarded by registered mail to Deere and Company, Moline, Illinois 61625, pursuant to Section 303.13 Subd. 1 (3) Minnesota Statutes.” Deere and Company moved the court to dismiss the action or in lieu thereof to quash the affidavit of service of summons upon the grounds that defendant is not subject to service of process within the State of Minnesota; and that, if it were, the attempted service was not effectual.

In support of the motion, it is averred: Deere and Company is a Delaware corporation with its principal office at Moline, Illinois. It is not authorized to do business in this state and is not. registered as a foreign corporation here. It does not do business in this state and has no office, employees, or officers located in this state. It ships its products from outside of the state into Minnesota but only on order for such shipments by John Deere Company of Minneapolis, a Minnesota corporation which sells defendant’s products. Sales of defendant’s products in Minnesota are effected only by the Minnesota corporation and independent retail dealers. Defendant performs no regular and consistent acts within the State of Minnesota, its activity being limited to participation at the request of the Minnesota corporation in the analysis of service problems and the promotion of Deere products.

Defendant’s responses to interrogatories submitted by plaintiff disclose that Deere and Company owns all the outstanding shares of John Deere Company of Minneapolis; that four of the directors of each corporation are also directors of the other; that the value of defendant’s products shipped into Minnesota annually and sold at wholesale approximates $10,000,000; that it has no franchised dealers in this state and does not participate in the designation or termination of franchised dealerships.

On appeal, the legal issues are these:

(1) Is the term “foreign corporation” as it appears in § 303.13, subd. 1(3), applicable to defendant, a foreign corporation doing an interstate *213 business in Minnesota and not required to register in this state as a foreign corporation?

(2) Must the complaint allege that the defendant foreign corporation made a contract with a resident of Minnesota to be performed in whole or in part by either party in Minnesota, or that such foreign corporation committed a tort in whole or in part in Minnesota against a resident of Minnesota, in order to complete service under § 303.13, subd. 1(3)?

(3) Does mailing the summons and complaint to the secretary of state, who files it in his office and mails a copy by registered mail to the foreign corporation, constitute sufficient compliance with § 303.13, subd. 1 (3), to effect service on a foreign corporation under that statutory provision?

Deere and Company contends that while § 300.02, subd. 6, defines a “foreign corporation” as any corporation except a “domestic corporation,” the definition controlling in the present situation is that which appears in § 303.02, subd. 4, which provides that the term “foreign corporation” does not include any corporation which, under the constitution and statutes of the United States, may transact business in this state without first obtaining a certificate of authority so to do. Its reasoning in support of this proposition is as follows:

(1) Section 300.02, subd. 6, first appeared in R. L. 1905, § 2840, and afforded what was then the only statutory definition of a foreign corporation in these words: “The term ‘domestic corporation’ shall mean every corporation organized under the laws of this state, and the term ‘foreign corporation’ shall mean every other corporation.”

(2) The Minnesota Foreign Corporation Act, first adopted as L. 1935, c. 200, provides (§ 1) that for the purpose of that act—

“* * * ‘domestic corporation’ shall mean a corporation formed under the laws of this state; ‘foreign corporation’ shall mean a corporation not formed under the laws of this state but shall not include corporations, which under the constitution and statutes of the United States may transact business in this state without first obtaining a certificate of authority so to do and shall not include insurance companies as the same are defined by Mason’s Minnesota Statutes of 1927, Sections 3312 and 3314; * *

*214 This definition of “foreign corporation,” with an addition not relevant here, now appears in Minn. St. 303.02, subd. 4.

(3) The specific provisions appearing in the Minnesota Foreign Corporation Act should govern here because “[i]t is the rule that specific provisions in a statute control general provisions; that provisions of a complete and specific act will prevail over general language of another, prior provision, and if there is conflict between different statutes as to the same matter, the later statute prevails.” Fink v. Cold Spring Granite Co. 262 Minn. 393, 399, 115 N. W. (2d) 22, 26.

(4) Although the revised Minnesota Statutes approved officially March 8,. 1945, extend (by virtue of § 300.02, subd. 1) the definition of foreign corporation appearing in § 300.02, subd. 6, to cc. 300 to 317, the adopting act itself provides: “The laws contained and compiled in Minnesota Revised Statutes 1945 are to be construed as continuations of the acts from which compiled and derived and not as new enactments.” Minn. St. 648.14 (L. 1945, c. 67, § 4). Therefore, defendant argues, the definition controlling where the words “foreign corporation” are used in c. 303 remains that appearing in § 303.02, subd. 4.

(5) The. statutory section upon which plaintiff relies in support of the efficacy of his service, § 303.13, subd. 1(3), is a part of c. 303; therefore, the term “foreign corporation” as used in that section does not include any corporation which, under the constitution and statutes of the United States, may transact business in this state without first obtaining a certificate of authority so to do.

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Bluebook (online)
161 N.W.2d 313, 281 Minn. 210, 1968 Minn. LEXIS 992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalthoff-v-deere-and-company-minn-1968.