Kaw Boiler Works v. Frymyer

1924 OK 469, 227 P. 453, 100 Okla. 81, 1924 Okla. LEXIS 925
Supreme Court of Oklahoma·Decided April 22, 1924·No. 13109·Published·Cited by 23 cases

Opinion

Opinion toy

STEPHENSON, C-

The plaintiff prosecutes this action as the next of kin of Burwell Frymyer, deceased, against the Kaw Boiler Worts, a corporation, and the Chickasaw Refining Company, a corporation, for the- alleged wrongful death of his son. The son was about the age of 21 years at the time of his death. The Kaw Boiler Works is a foreign corporation and was engaged in the construction of a condenser box, as an independent contractor, for the Chickasaw Refining Company, at Ardmore, Okla. Plaintiff’s son was an employe of the Kaw Boiler Works and assisting in the construction of the condenser at the time of his death, which resulted from a fire near the tank. In the trial of the cause judgment went for the plaintiff and against the Kaw Boiler Works. The Chickasaw ‘ Refining Company recovered judgment in the trial. The Kaw Boiler Works has appealed the cause to this court and assigns various proceedings had in the trial court as error for reversal:

(1) Error in assuming jurisdiction of the action.

(2) Error in overruling the motion of defendant to quash the summons and its return.

(3) Error in overruling defendant’s demurrer to plaintiff’s amended petition.

(4) Error in refusing to direct a verdict in favor of the defendant.

(5) Error in admitting certain incompetent evidence and in refusing competent •evidence offered by the defendant.

Summons in this cause for the Kaw Boiler Works was served on the Secretary of State. 'The defendant contends that section 5442, ■Comp. Stat. 1921, is invalid and insufficient to support the service of summons in this •case, as the Secretary of State was not required to bring notice of the action to the defendant. The validity of this section was before the court in the case of Tidal Gty. & Surety Co. v. Slinker, 42 Okla. 811, 143 Pac. 41. The court held the section to be valid for the purposes for which it was enacted. The defendant states that the ■statute was attacked in the Slinker Case on the ground that the state was without ■authority to designate one of its officers as service agent for foreign corporations and not on the ground herein presented. The defendant says that the authorities holding a similar statute invalid were not called ■to the attention of the court in the first .appeal. The defendant does not question the right of the Legislature to make provision® for constructive service on foreign corporations engaged in business pursuits in the state. The right of the state to designate the Secretary of State as service agent for such corporations, if the latter do not name their own service agents, is not questioned. In substance, it is the com tention of the defendant that the statute does no.t make reasonable provision for notice of a suit to be brought to the attention of the defendant. For the reason given, the defendant says the statute denies to foreign corporations due process of law in the trial of causes in our jurisdiction, and for that reason is null and void. As proof of the existing vice in the statute, it is said by the defendant, by its provisions, a judgment may go against the defendant without knowledge of the suit coming to its attention, and that it was by mere "chance notice of the instant case was received by the defendant. AVhile this may be true, it does not necessarily destroy the act. So long as the Legislature makes provisions for constructive service in action? in per-sonam, under carefully drawn acts, occasional judicial loss of property may be suffered -by the adverse party without notice of the action. However, the state may rightfully provide for constructive service on resident defendants and foreign corporations engaged in business in the state in actions in personam. Pennoyer v. Neff, 93 U. S. 714; Barkman v. Hopkins, 11 Ark. 157: Betamcourt v. Eberlin, 7Í Ala. 461; Bick-erdike v. Allen, 157 Ill. 95; Harrymon v. Roberts, 52 Md. 65. The Supreme Court of the United States prescribes the following standard for testing the sufficiency of a legislative act providing for constructive service on ‘the defendant in the state where the action is instituted. “The criterion is not the possibility of conceivable injury, but the just and reasonable character of the requirements having reference to the subject with which the statute deals.” American Land Co. v. Zeiss, 219 U. S. 67, 31 Sup. Ct. 207, 55 L. Ed. 82. If the legislative act providing for constructive service embodies provisions reasonably calculated to bring notice of the suit to the attention of the defendant in time to answer the complaint before the day of default, it will be deemed valid. If the provisions for bringing notice of the suit to (he attention of the defendant are in keeping with the natural sense of justice reflected by our jurisprudence applying to judicial inquiries, which guarantees to the defendant his day in court, with reasonable opportunity to make his defense before the pronouncement of judgment, the legas- *84 lative act will be deemed valid. LaFayette Ins. Co. v. French, 18 Howard, 404, 15 L. Ed. 451; Conn. Mutual Life Ins. Co. v. Spratley, 172 U. S. 602, 43 L. Ed. 569; N. Y. L. E. & W. Ry. Co. v. Estill, 147 U. S. 501, 37 L. Ed. 292; Wilson v. Seligman, 144 U. S. 41, 36 L. Ed. 338; N. Mo. R. Co. v. Alters, 4 Kan. 453, 16 Am. Dec. 183; Reyer v. Odd Fellows Fraternal Accident Ass’n., 157 Mass. 367, 32 N. E. 469; Farrell v. Oregon Gold Mining Co., 31 Ore. 463 49 Pac. 876; Klopp v. Creston City Gty. Water Works Co., 34 Neb. 808, 52 N. W. 819.

The right of a foreign corporation to enter a state to engage in business depends on the consent of the state. The state may prescribe the conditions under which it will admit such corporations to engage in business pursuits within its borders. It is within the right of the state to require foreign corporations to submit to the trial of actions in its courts arising in the course of the corporation’s business in the state. In order to give effect to such a requirement, the state may provide for constructive notice in personal actions instituted in its courts against defendant corporations by service of process on, some .state officer designated by the state, or such person as the corporations may designate as its own service agent. A compliance by the corporation with the conditions required by the state, in order for it to be entitled to engage in business therein, is to be deemed a condition of the permission. A corporation which enters our state to engage in business is deemed to consent to all required conditions, which includes consent to accept the agent designated by the state for service, as fully as if such agent had been appointed by the corporation. Pennoyer v. Neff, supra; St. Clare v. Cox, 106 U. S. 350, 27 L. Ed. 222; Barrow Steam Ship Co. v. Kane, 170 U. S. 100, 42 L. Ed. 964; Smith v. Empire State-Idaho Mining & Dev. Co., 127 Fed. 462; Central Grain Stock Exc. v. Board of Trade of Chicago, 125 Fed. 463; Vulcan Const. Co. v. Harrison, 95 Ark. 588, 130 S. W. 583; Thomas v. Placerville Gold Quartz Mining Co.,65 Cal. 600, 4 Pac. 641, 22 A St. Rep. 433; Wilson v. Martin-Wilson Automatic Fire Alarm Co., 149 Mass. 24, 20 N. E. 318; Armstrong v. N. Y. and H. R. Co., 129 Minn. 104, 151 N. W. 917; Shields v. Union Cent. Life Ins. Co., 119 N. C. 380, 25 N. E. 951; St. L.

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Kaw Boiler Works v. Frymyer, 1924 OK 469, 227 P. 453, 100 Okla. 81, 1924 Okla. LEXIS 925 (Okla. 1924).

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