Keokuk & Hamilton Bridge Co. v. Curtin-Howe Corp.

274 N.W. 78, 223 Iowa 915
CourtSupreme Court of Iowa
DecidedJune 15, 1937
DocketNo. 43938.
StatusPublished
Cited by3 cases

This text of 274 N.W. 78 (Keokuk & Hamilton Bridge Co. v. Curtin-Howe Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keokuk & Hamilton Bridge Co. v. Curtin-Howe Corp., 274 N.W. 78, 223 Iowa 915 (iowa 1937).

Opinion

*916 Parsons, J.

This case was brought by the plaintiff, Keokuk & Hamilton Bridge Company, a corporation, against the CurtinHowe Corporation, of New Jersey, having its principal place of business in New York, and the defendant Joyce-Watkins Company, with its principal place of business in Chicago, Illinois.

There was no evidence taken in the case, and from the pleadings we gather .that the Joyce-Watkins Company distributes timber, lumber and other wood products which have been subjected to the special treatment prescribed by the defendant, Curtin-Howe Corporation. The distribution of this specially treated lumber is under a contract or arrangement with the Curtin-Howe Corporation for a division of profits arising from the sale of such products. The plaintiff alleges that the CurtinHowe Corporation was permitting the sale of timber and wood materials having a Zinc-Meta-Arsenite (commonly called ZMA) treatment, and the Joyce-Watkins Company was performing the part of acting as distributor of such ZMA treated timber, lumber and wood under said arrangement or contract between the Curtin-Howe Corporation and the Joyce-Watkins Company; that during the years 1929 and 1930 the plaintiff purchased of the defendants large quantities of timber, sills, beams, and sub-flooring for use in its bridge work, which- was to have had this ZMA treatment, which was guaranteed to prevent decay and to give double life to lumber so treated: The plaintiff alleged that warranties and guaranties on the part of the defendants were contained in typewritten and printed circulars sent out to plaintiff prior to its purchase of the material. Plaintiff claimed that the treated material purchased was placed in its bridge structure, that decay set in and same was more rapid and destructive than any untreated lumber therefore used in their bridge work; that because of such decay and deterioration of said lumber, the asphalt plank on the top floor or wearing surface of said bridge gave way, and the surface floor became broken and damaged because of the dry rot developed in the ZMA treated lumber, which made it powdery, devoid of strength, and it was easily crushed, and did not support the top flooring and other structures which said lumber was designed to support. That by reason of this deterioration in the lumber so purchased, the plaintiff was damaged in the sum of $15,000.

Original notice was served upon the defendants in the manner and form as pointed out by subsection 6 of section 8421 *917 of the Code. A default was taken against the Joyce-Watkins Company for want of appearance, and a judgment was entered thereon against that company for $10,000.

The defendant Curtin-Howe Corporation made a special appearance to quash the service so made by it through the secretary of state, under the provisions of subsection 6 of section 8421, setting forth that the only service made or attempted to be made upon it was through the original notice upon the secretary of state; that the defendant is a Delaware corporation with its principal place of business in New York; that it has never been engaged at any time in doing business in Iowa, and was never qualified to do business in Iowa under the statutes of the state; that it never designated the secretary of state as an agent upon whom an original notice might be served. The defendant claimed it never at any time entered into contractual relations with the plaintiff, nor entered into business transactions with the plaintiff in the state of Illinois, either by agent, or otherwise. That to require it to defend in this action would be a violation of the rights of this defendant under the provisions of section 1 of the 14th Amendment of the Constitution of the United States, and would be an attempt to deprive this defendant of its property without due process of law.

It further alleged that the defendant never did any business in Iowa subject to the jurisdiction of the court; that the statutes of the State of Iowa fail to provide for any service of process upon any foreign corporation which has failed to obtain a permit under chapter 386, Title XIX, of the Code of Iowa (section 8420 et seq.), whether the said foreign corporation has or has not done business in the state of Iowa, unless it has an agency within the state of Iowa, at the time of service, which this defendant does not have; that if the defendant did business in Iowa as claimed in plaintiff’s petition such actions were casual and incidental and did not constitute doing business in Iowa sufficient to subject the defendant to the jurisdiction of the Iowa courts; that the defendant, being at the time of purchase a nonresident of Iowa and had never been qualified to do business in the state of Iowa, and having no agent or any agency in Iowa, it cannot be subjected to the jurisdiction of the Iowa court for acts done in 1929 and 1930, whether the acts complained of were done in Iowa or elsewhere; that section 8421, Code of Iowa, does not by its express terms apply to this defendant because it had never *918 applied for a permit to transact business in Iowa, nor had it ever appointed an agent for process in this state; and that the service made under and by virtue of section 8421 of the Code of Iowa, is not binding upon, nor does it bring this defendant, within the jurisdiction of the State of Iowa; and that the attempted service as shown by the records does not constitute due process of law. Attached to this was an affidavit supporting the statements set forth in the special appearance and motion to quash the service.

Plaintiff in its resistance set forth as grounds for overruling the special appearance of Curtin-Howe Corporation, that said defendant was in the state of Iowa in the person of its agent and representative, F. S. Shinn, and was through said agent actually within the state engaged in doing business, as shown by the plaintiff’s petition and Exhibit A, the original notice served on the secretary of state, which it attached .thereto; that the corporation came into the state and transacted business, and it was in the spirit of .the statutes that a foreign corporation coming into the state and transacting business with citizens of the state should be amenable to process within the state on actions arising out of the business so transacted within the state; also because a citizen of this state should not be required to go into a foreign state for the purpose of bringing an action on transactions occurring within the state; and because Shinn, its agent, was sent into the state for the purpose of computing quantities and prices and securing business from the plaintiff, it impliedly agreed to be bound by the statutes of Iowa, and impliedly consented that the Iowa Courts should have jurisdiction over it in all matters arising out of the business therein transacted; that the jurisdiction did not impinge any of the defendant’s constitutional or other civil rights, but did place the defendant on the same footing as citizens of Iowa, and on the same footing as other foreign corporations who comply with the laws of Iowa.

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Bluebook (online)
274 N.W. 78, 223 Iowa 915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keokuk-hamilton-bridge-co-v-curtin-howe-corp-iowa-1937.