Loomis v. Federal Union Surety Co.

163 Ill. App. 621, 1911 Ill. App. LEXIS 507
CourtAppellate Court of Illinois
DecidedOctober 14, 1911
StatusPublished
Cited by3 cases

This text of 163 Ill. App. 621 (Loomis v. Federal Union Surety Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loomis v. Federal Union Surety Co., 163 Ill. App. 621, 1911 Ill. App. LEXIS 507 (Ill. Ct. App. 1911).

Opinion

Mr. Presiding Justice Philbrick

delivered the opinion of the court.

This is a bill filed by complainants against defendants for the purpose of compelling the Federal Union Surety Company to pay over to complainants certain moneys alleged to have been paid to it by the defendant, C. C. C. & St. L. Railway Company, upon a contract made between the Collier Bridge Company and the railroad company, the performance of which contract was guaranteed-on the part of the bridge company by the Federal Union Surety Company. The bill was filed in Coles county. The C. C. C. & St. L. Railway Company, was the only defendant found in that county; service was had upon the Federal Union Surety Company and the Collier Bridge Company, who were foreign corporations, by summons served upon their representatives appointed under the statute requiring the designation of some persons within the state upon whom service can be made. To this bill, the defendants, the Federal Union Surety Company and the Collier Bridge Company, filed pleas in abatement denying jurisdiction of these defendants. The railroad company demurred to the bill. The pleas to the jurisdiction were held good and judgment rendered against complainants upon these pleas. After the pleas had been held good the demurrer of the defendant railroad company to the bill was sustained and the bill dismissed, with judgment against complainants for costs, and it is from this judgment that complainants prosecute the writ of error to this court.

The bill filed by complainants sets forth with proper averments the contract between the Collier Bridge Company and the C. C. C. & St. L. Railway Company for the construction of certain cement work upon the right of way of the railway company in the state of Indiana, that this contract was guaranteed by the defendant, Federal Union Surety Company, that the work required to be done by the bridge company under this contract was sub-let by it to complainants herein, that during the progress of the work certain payments were made to complainants herein, but before the completion of the work the Collier Bridge Company became financially embarrassed and was unable to perform its contract, that thereupon an agreement was made by complainants with the defendant railroad company and the defendant Federal Union Surety Company by which complainants proceeded with and finished the work provided to be done by it and that in payment for this work the defendant railroad company paid the_ defendant surety company under agreement that payment by it should be made the complainants; that the surety company failed and refused to make the payment to the complainants after the completion of the work.

The pleas which were filed by the defendant bridge company and the defendant surety company were to the jurisdiction of the court of the persons of these defendants and these pleas respectively allege that defendants were foreign corporations, that the contract under which the work was performed by complainants was governed by the laws of the state of Indiana and related to work done and performed in that state, that no contract relating to the said transaction was made by either of these defendants within the state of Illinois, and that for work done and contracted for outside of the state of Illinois the courts of this state could obtain no jurisdiction by service upon the legal representatives of these corporations within the state of Illinois. A demurrer was filed to these pleas and overruled.

The question raised by this appeal as to these defendants is whether or not these pleas presented a good defense to the jurisdiction and whether or not by service had the circuit court of Coles county could obtain jurisdiction of the defendants, the Federal Union Surety Company and the Collier Bridge Company; if it did, then the demurrer to these pleas should have been sustained and the defendants required to answer the bill. The cause of action against, the defendant railroad company as set forth in the bill was merely one of discovery and was only for the purpose of compelling it to disclose the amounts of money paid to the Federal Union Surety Company for work performed by complainants, and as to it the only question raised is whether the bill of discovery will lie for this purpose and whether the railroad company is properly joined as a party defendant. Complainants herein were residents of Coles county. The plea to the jurisdiction filed by the Federal Union Surety Company was signed by Samuel A. Dowden, one of the solicitors of that corporation; the plea that purported to have been filed by the Collier Bridge Company is not signed by the Collier Bridge Company but is signed by the Federal Union Surety Company by Samuel A. Dowden, solicitor, and so far as the record in this case shows, there is no plea on file signed by the corporation, the Collier Bridge Company. The sufficiency of the pleas to the jurisdiction filed by the Federal Union Surety Company and the Collier Bridge Company, defendants, was heard and a judgment rendered thereon on the fifteenth day of the October term, 1909, of said court; on the seventeenth day of that term the demurrer was filed by the defendant railroad company to the bill; the judgment of the court on this demurrer was rendered at the January term, 1910.

Section 26 of chapter 32 of Hurd’s Revised Statutes, 1908, is as follows:

“Foreign corporations, and the officers and agents thereof doing business in this state, shall be subjected to all the liabilities, restrictions and duties that are or or may be imposed upon corporations of like character organized under the general laws of this state, and shall have no other or greater powers. * * *”

Section 102d of the same chapter is as follows:

“All actions brought against any company or corporation doing business under this act, may be brought in any county where the cause of action accrued or where the plaintiff or complainant resides or in any county where the company or corporation does business, and process may be- directed to any county in this state for service and return.”

Section 7 of chapter 110, Hurd’s Revised Statutes, 1908, is as follows:

“The courts of record of the county wherein the plaintiff or complainant may reside, shall have jurisdiction , of all actions hereafter to be commenced by any individual against any insurance company either incorporated by any law of this state or doing business in this state. And all process issued in any cause commenced in the county where the plaintiff may reside, wherein an individual may be plaintiff or complainant and such company defendant, may be directed to any county of this state for service and return. ’ ’

It must be conceded that the defendant, Federal Union Surety Company, and it is not contended otherwise, is an insurance company falling within the provisions of the statutes of this state relating to such companies. U. S. F. & G. Co. v. First Nat’l. Bank, 233 Ill. 475; People v. Rose, 174 Ill. 310.

Defendants in error ask this court to construe these sections of the statutes to mean that unless the contract was made within the state of Illinois and was to be performed in the state of Illinois, the sections of the statute above set forth do not apply, but we are unable to see any reason for or upon what theory this court can construe the statute in this way.

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Cite This Page — Counsel Stack

Bluebook (online)
163 Ill. App. 621, 1911 Ill. App. LEXIS 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loomis-v-federal-union-surety-co-illappct-1911.