Knapp v. Bullock Tractor Co.

242 F. 543, 1917 U.S. Dist. LEXIS 1242
CourtDistrict Court, S.D. California
DecidedMay 19, 1917
DocketNos. 545, 570
StatusPublished
Cited by15 cases

This text of 242 F. 543 (Knapp v. Bullock Tractor Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knapp v. Bullock Tractor Co., 242 F. 543, 1917 U.S. Dist. LEXIS 1242 (S.D. Cal. 1917).

Opinion

BLEDSOE, District Judge

(after stating the facts as above). The contentions of defendants in both cases seem to be directed to the point that, because they are engaged in interstate commerce, they are not “doing business” in the state of California within the terms of the law of said state providing for service of summons. Section 411 of the Code of Civil Procedure of California reads:

[549]*549“The summons must be served by delivering a copy thereof as follows: * * 2. If suit is against a foreign corporation, or a nonresident joint stock company or association, doing business and having a managing or business agent, cashier or secretary within this state- To such agent, cashier, or secretary. * * * 6. In all other cases to the defendant personally.”

And much, if not most, of the argument has been expended in the effort to cite a multitude of cases to the effect that defendants are engaged in interstate commerce, and therefore are not amenable to the laws of the state of California.

[1] Without in any wise attempting to refer to these authorities, it suffices to say that, since the decision in International Harvester Co. v. Kentucky, 234 U. S. 579, 587, 34 Sup. Ct. 944, 58 L. Ed. 1479, the fact that a foreign corporation may be engaged in interstate commerce docs not in any wise serve to render it immune from the assertion of jurisdiction by the state courts in any state in which it may be engaged in doing business, and in which appropriate provision is made by the law thereof for the assertion of jurisdiction over it. Atkinson v. U. S. Operating Co., 129 Minn. 232, 152 N. W. 410, L. R. A. 1916E, 241; Armstrong Co. v. N. Y. Central, 129 Minn. 104, 151 N. W. 917, L. R. A. 1916E, 232, Ann. Cas. 1916E, 335. Out of the multitude of authorities cited, and which have been examined by the court in the course of its labors, no really satisfactory, comprehensive, and scientifically accurate determination of yvhat is necessary or may be sufficient to constitute “doing business” in a state has been encountered. In cases like those at bar, in which the corporation obviously is seeking to do all the business it can, and yet all the while escape the jurisdiction of the local tribunals, it probably would not do to accept the general statement indulged in by the Supreme Court in St. Louis Ry. Co. v. Alexander, 227 U. S. 218, 227, 33 Sup. Ct. 245, 248 (57 L. Ed. 486, Ann. Cas. 1915B, 77), where Mr. Justice Day declared:

“In a general way it may bo said that the business must be such in character" and extent as to warrant the inference that the corporation bad subjected itself to the jurisdiction and laws of the district in which it is ¡.■erved and in which it is bound to appear when a proper agent has been served with process.”

. In so far as that inay seem to imply a conscious “subjection” of itself to the “jurisdiction and laws of the district,” it could hardly ever occur in a case like the ones at bar that the inference could be drawn. Much more compelling language was indulged in by the same court in the International Harvester Case, supra, where the same justice declared:

“We are satisfied that the presence of a corporation within a state necessary to the service of process is shown when it appears that the corporation is there carrying on business in such sense as to manifest its presence within the state.”

In similar vein, Mr. Justice Brandéis in a recent decision (Philadelphia & Reading Ry. Co. v. McKibbin, 243 U. S. 264, 37 Sup. Ct. 280, 61 L. Ed. 710, decided March 6th, 1917) says :

“A foreign corporation is amenable to process to enforce a personal liability, in the absence of consent, only if it is doing business within the state in [550]*550such manner and to such extent as to warrant the inference that it is present there.”

[2-4] So, also, it was said by Judge Hawley, of this circuit, in Doe v. Springfield Boiler & Mfg. Co., 104 Fed. 684, 687, 44 C. C. A. 128, 131:

“The general consensus of opinion is that the corporation must transact within the state some substantial part of its ordinary business by its officers or agents appointed and selected for that purpose, and that the transaction of an isolated business act is not the carrying on. or doing business in a state.”

Just what may be meant in that statement by the phrase “some substantial part of its ordinary business” is perhaps indefinite; but I think, upon reason and authority, it may be said that if the corporation is engaged in a more, or less continuous effort, not merely casual, sporadic, or isolated, to conduct and carry on within the state some part of the business in which it is usually and generally engaged, it may be said with due and becoming propriety to be “doing business” within such state. Copper Mfg. Co. v. Ferguson, 113 U. S. 727, 5 Sup. Ct. 739, 28 L. Ed. 1137; Vaughn Machine Co. v. Lighthouse, 64 App. Div. 138, 71 N. Y. Supp. 801; Neyens v. Worthington, 150 Mich. 580, 114 N. W. 404, 18 L. R. A. (N. S.) 142; Penn Collieries v. McKeever, 183 N. Y. 98, 75 N. E. 935, 2 L. R. A. (N. S.) 127.

Within these limits and upon the facts adduced in the cases at bar, there can be no conclusion other than that each of the defendant corporations is doing business within the state of California. The other questions in the case are as to the sufficiency of the service had.

[5, 6] In the Tractor Company Case service was had upon a corporation that was in every sense of the word a “business agent” of the defendant in California. Some criticism is indulged in because of the fact that the complaint alleges, as adverted to hereinabove, that defendant’s principal place of business in California was in Los Angeles. Obviously, however, no service could have been made upon defendant’s business agent at its place of business in Los Angeles. So to do would have been for plaintiffs to have served themselves in a suit by them against defendant. Such would doubtless have failed to comply with the due process requirements of the law. St. Clair v. Cox, 106 U. S. 350, 1 Sup. Ct. 354, 27 L. Ed. 222. There is no reason, however, why, though defendant’s principal place of business in California may have been, as alleged, in Los Angeles, service could not have been made upon an appropriate business agent located elsewhere within the state.

Although, in view of the holding of the sufficiency of the service on the business agent of defendant, the question of the sufficiency of the service upon the secretary of state is not necessary to a decision herein, yet, since motion has been made to quash it, I am constrained to hold that such motion should be granted. Such service was had pursuant to the provisions of section 405 of the Civil Code of California, which is contained in title 1, part IV, of said Code, entitled “Foreign Corporations,” and provides as follows:

“Designation of Person on Whom Process may he Served — Service

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kesler v. Schetky Equipment Corporation
200 F. Supp. 678 (N.D. California, 1961)
State v. Ford Motor Co.
38 S.E.2d 242 (Supreme Court of South Carolina, 1946)
Postal Ben. Ins. Co. v. Johnson
165 P.2d 173 (Arizona Supreme Court, 1946)
The Thew Shovel Co. v. Superior Court
95 P.2d 149 (California Court of Appeal, 1939)
Liquid Veneer Corporation v. Smuckler
90 F.2d 196 (Ninth Circuit, 1937)
Wells Fargo & Co. of Mexico v. McArthur Bros. Mercantile Co.
26 P.2d 1021 (Arizona Supreme Court, 1933)
Milbank v. Standard Motor Construction Co.
22 P.2d 271 (California Court of Appeal, 1933)
St. Mary’s Oil Engine Co v. Jackson Ice & Fuel Co.
138 So. 834 (Supreme Court of Alabama, 1931)
Erving v. Chicago & North Western Railway Co.
214 N.W. 12 (Supreme Court of Minnesota, 1927)
Consolidated Flour Mills Co. v. Roberts
1926 OK 429 (Supreme Court of Oklahoma, 1926)
Rendleman v. Niagara Sprayer Co.
16 F.2d 122 (E.D. Illinois, 1925)
State Ex Rel. Foraker v. Hoffman
274 S.W. 362 (Supreme Court of Missouri, 1925)
Duke v. Pioneer Mining & Ditch Co.
280 F. 883 (W.D. Washington, 1922)
Gutta Percha Manufacturing & Rubber Co. v. Lehrack
214 S.W. 285 (Court of Appeals of Kansas, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
242 F. 543, 1917 U.S. Dist. LEXIS 1242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knapp-v-bullock-tractor-co-casd-1917.