Lewis Manufacturing Co. v. Superior Court

295 P.2d 145, 140 Cal. App. 2d 245, 1956 Cal. App. LEXIS 2238
California Court of Appeal·Decided March 26, 1956·No. Civ. 21464·Published·Cited by 4 cases

Opinion

WOOD (Parker), J.

Petition for writ of prohibition, based upon alleged invalidity of service of summons on a foreign partnership (service under Corp. Code, § 15700).

The petition alleges: That petitioner, Lewis Manufacturing Company, is a copartnership which was created by written agreement on June 1, 1952, by C. T. Lewis, Maurine Lewis, Charles Lewis, and Mary Lewis, who reside in Oklahoma, and no one of whom has lived in California. Prior to organizing such partnership, C. T. Lewis, as sole owner, conducted the business under the name of “Lewis Manufacturing Co.,” in *247 which no other person owned any interest. Petitioner, upon its organization, acquired the business of C. T. Lewis and since such date continued to operate as the Lewis Manufacturing Company. C. T. Lewis, while sole owner of the business, did no business in California. On May 19, 1954, Goldie J. Edison (surviving wife of E. L. Edison), and the five children and the mother of E. L. Edison, instituted an action in the Superior Court of Los Angeles County, California, against petitioner and North & Judd Manufacturing Company, a corporation, seeking to recover damages sustained by reason of the “wrongful death of their decedent, Edward L. Edison, charged to have occurred” on December 15, 1953, “while he was employed by Kee and Simpson in Ventura County, working on an oil derrick using a safety belt,” and by reason of alleged defects in the belt decedent fell and was fatally injured. The complaint alleged that petitioner and North & Judd manufactured the belt. In said cause, service upon petitioner was had under section 15700 of the Corporations Code by causing a summons with copy of complaint, and statement of last known address of petitioner, to be served on the Secretary of State on June 28, 1954. Petitioner moved to quash the service on the ground that petitioner was not subject to constructive service and had not been doing business in this state. The motion was granted on July 28,1954, and the order provided: “It is ordered that the motion to quash service of summons . . . is granted, and the same is subject to the right and privilege of the plaintiffs to issue process at a subsequent date.” On August 8,1955, the plaintiffs in said action caused to be served on the Secretary of State a summons, copy of complaint, and affidavit of last known address of petitioner “which was mailed to your petitioner.” Petitioner filed its motion to quash said service on the ground that petitioner was not subject to constructive service and had not been doing business in California. An affidavit of C. T. Lewis and the deposition of Ed Plauger (Plaugher) were introduced in evidence. The proof established that petitioner had never maintained any office, warehouse or stock of materials in this state, all persons and business establishments in California that handle petitioner’s products “were and are independent of and have no financial interest in the partnership; petitioner has no control or financial interest in any business establishment in California; and all persons or business establishments that purchase petitioner’s products are free to purchase competitive products of other manufacturers. Petitioner has never *248 had a salesman in California; has never done any manufacturing, selling or purchasing in California; has never had a bank account, paid taxes, maintained a mailing address, rented any property or maintained an agent here for the purpose of collecting accounts. Petitioner has never had a telephone listing or a listing in any directory in California, and has never owned any property in California. For the past five years Plaugher and Company, as jobber or commission agent, has effected some sales in California of petitioner’s products. All sales have been limited to supply houses, and no sales have been made direct to the user of the products. The total volume of sales in California has been less than one per cent of its total sales. It has not advertised in California and does not attempt to solicit any business in California other than by mailing its catalogue and price list to firms who have purchased its products. Its sales in California have not been sufficient to justify the expense of a part-time salaried employee or the expense of sending a salesman on one trip to California. For petitioner’s fiscal year ending May 31, 1953, sales in California amounted to $3,216.68 or 1.051 per cent of petitioner’s total sales. For its fiscal year ending May 31, 1955, sales in California amounted to $2,975.85 or .924 per cent of its total sales. Petitioner has not maintained an office, warehouse or stock of material in California. All persons in California who handle petitioner’s products are independent. Plaugher was engaged in selling oil field supplies and he sells the products of many concerns. His total commissions in 1953 from such concerns' amounted to $38,000, and less than $600 of that amount was received from petitioner. Plaugher’s business card has the name of his “concern” and its address on one side of the card, and on the other side of it there are the names of petitioner and 10 other concerns whose products he sells. The belt which allegedly caused the accident was sold by “C. T. Lewis” on April 8, 1952, to the Bethlehem Supply Company, which company sold the belt on June 13, 1952, to Kee and Simpson Drilling Company, the employer of decedent. Such sale occurred about two months before petitioner, the partnership, was formed. Petitioner has not obligated itself to be responsible for any of the debts or liabilities of C. T. Lewis. After the first motion to quash service of summons was sustained (on stipulation), the cause proceeded to trial against North & Judd. A verdict for plaintiff was returned, and a motion for a new trial was granted. On October 14,1955, the superior court denied petitioner’s motion *249 (second motion) to vacate the service of summons. Said court has no jurisdiction over petitioner for the reason that petitioner was not doing business in California, “did not come into existence or transact business anywhere prior to June 1, 1952 and after the alleged defective belt was sold and is not subject to constructive service. ’ ’

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Lewis Manufacturing Co. v. Superior Court, 295 P.2d 145, 140 Cal. App. 2d 245, 1956 Cal. App. LEXIS 2238 (Cal. Ct. App. 1956).

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