Knorr v. Home Insurance

25 Wis. 143
Wisconsin Supreme Court·Decided June 15, 1869·Published·Cited by 4 cases

Opinions

Cole, J.

This is- an application on the part of the defendant company for an order directing that this cause be removed to the circuit court of the United States for the district of Wisconsin for trial. The application' seems to be regular and in conformity to the law of congress upon that subject. The petition states that the defendant “is, and for more than two years last past hath been, a corporation created by, organized and existing under, the laws of the state of New York, having its principal business office in the city of New York, and is a citizen of the.State of New York,” and that the plaintiff is a citizen of this state.

[146] A re-argument of the cause was ordered at the last term, upon the point whether the defendant, by complying with the laws of this state regulating foreign insurance companies, did not, to a certain extent, lose its citizenship, and become a domestic corporation, so that the circuit court of the United States for this district could not take jurisdiction of the cause. In our examinations our attention was called to the cases of Stevens v. The Phoenix Insurance Company (24 How. Pr. 517), and New York Piano Co. v. New Haven Steamboat Co. (2 Abb. Pr. [N. S.] 358), where quite analogous questions were raised and considered. In Stevens v.' The Phoenix Insurance Company, Mr. Justice Allen, at special term, gave quite an elaborate opinion, upon a motion by the defendant to remove the cause to the circuit court of the United States for the northern district of New York, uppn the ground that the plaintiff was a citizen of the state of New York, and the defendant was a corporation created by the laws of Connecticut and located and doing business in that state. And he held that a foreign insurance company, created by the laws of another state, but doing business in New York under and in compliance with the laws of that state, upon being sued by a citizen of New York could not remove the cause into the federal courts on the ground that it was a citizen of another state within the meaning of the clause of the constitution which confers j urisdiction upon the courts of the United States by reason of the citizenship of the parties. He states,in substance, as a reason for this conclusion, that while a foreign corporation cannot migrate or have any extra-territorial existence by force of the law creating it, yet it may, by the comity of other states, transact business in such states, establish agencies therein, sue and be sued, etc.; and that, when a corporation did avail itself of this comity, and of privileges thus conferred, in respect to the transaction of business, as to the business thus transferred it lost its' citizenship, and became to that ex[147] tent a citizen of the state under whose laws it transacted its business, and of whose governmental protection it availed itself. Another reason is given, that the company, by consenting to do business under and by authority of the laws of New York regulating foreign insurance companies, submitted itself to the jurisdiction of the courts of that state.

In the case of the Piano Co. v. New Haven Steamboat Company, Robertson, C. J., held, that a corporation will 'not be deemed a non-resident of that state, although chartered by the laws of another state,, if it has a regular place of business within the state in which the action is pending, and has there an agent upon whom, by law, process may be served, and who has agreed to admit service of,process. He held that the locality where the principal part of its business is done, and where it exercises those functions of a corporation in the mode in which its existence is actually made known to the public, furnishes the best test to determine the citizenship of a corporation.

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Knorr v. Home Insurance, 25 Wis. 143 (Wis. 1869).

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