Louisville Coal & Coke Co. v. Pocahontas Co.

1 Hosea's Rep. 75
CourtOhio Superior Court, Cincinnati
DecidedJuly 1, 1907
StatusPublished

This text of 1 Hosea's Rep. 75 (Louisville Coal & Coke Co. v. Pocahontas Co.) is published on Counsel Stack Legal Research, covering Ohio Superior Court, Cincinnati primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville Coal & Coke Co. v. Pocahontas Co., 1 Hosea's Rep. 75 (Ohio Super. Ct. 1907).

Opinion

By the act of 52 O. L., 34, this court is given jurisdiction of actions brought against a non-resident of this state or a foreign corporation where property of or debts owing to the defendant may be found in the city of Cincinnati.

These suits are brought against a foreign corporation, and the primary question involved in these motions arises upon the validity and effect of a garnishment served upon a partnership composed of non-resident partners doing business within the jurisdiction of the court, in suits for money.

It may be premised as a cardinal principle that the jurisdiction of the court in a suit against a non-resident depends upon and is limited in extent to property taken into custody upon attachment proceedings duly had. The suits therefore become, essentially, proceedings in rem (Buckeye Pipe Line Co. v. Fee, 62 O. S., 545 [556]; Oilwell Supply Co. v. Koen, 64 O. S., 422 [429]), and the fact that such property, subject to garnishment, exists in the hands of the garnishee, must' be found by the court before the suit in attachment can proceed to final judgment. Myer v. Smith et al, 29 O. S., 120.

It is a settled principle also that in proceedings depending not upon natural right, but upon statutory authority solely, the conditions imposed by the statute as the basis of remedial action must be complied with. Attachment laws are there[76]*76fore strictly construed as against the party seeking their enforcement. Cook v. Olds Gasoline Works, 19 C. C., 732; Endel v. Leibrock, 33 O. S., 254.

In the case at bar the summons issued January 8, 1903, is returned “not found,” and an order of attachment January 8, 1905, is returned, endorsed: “1903, January 8. No goods or chattels, lands or tenements found to attach, and I have this day served Castner, Curran & Bullitt with a true copy of this writ and notice to garnishee by leaving the same at the usual place of business of said partnership and with H. R. Mather, manager of said firm, personally, at 11:55 o’clock, and have summoned them to appear and answer as required by law.”

The statutory basis for service upon garnishee is an affidavit describing the property coupled with the inability of the officer to get possession of the same. (Section 5530.) If the garnishee be a partnership, service may be made by leaving a copy of the order and notice to the garnishee to appear in court and answer, at the usual place of doing business, etc. (Section 5534.) It is further provided that the garnishee shall stand liable to the plaintiff in attachment for all property of the defendant in his hands and money and credits due from him to the defendant from the time he is served with the written notice mentioned in Section 5530 (Section 5538).

Incidentally it has been held that the service holds only such property as is at the time in the hands of the garnishee. Rice v. Farnham, 7 N. P., 189.

The question here, then, is a jurisdictional one, namely: Is there property or are there credits lawfully in the custody of the court by virtue of the proceedings had in this case?

So far as concerns the objection that a garnishment proceeding will not lie against the property or credits of a nonresident debtor, as intimated in a dictum in Root v. Davis, 51 O. S., 29, it seems to be conclusively answered to the contrary by Judge Sayler in a case decided by him when on the bench of the common pleas. See Goebel v. Bank, 3 N. P., 109.

[77]*77The garnishee has filed no answer, but under the order of the court, H. R. Mather, the local agent of the garnisheed firm, appeared before a referee and admitted the service of garnishee process and claimed ignorance of any relation of indebtedness of the firm represented by him, and that no account with the Pocahontas Company existed on his books: that his custom was to deposit all collections from sales in bank here to the credit of Castner, Curran & Bullitt, Philadelphia, excepting a small amount reserved as an agency fund.

Upon a subsequent examination he could not answer as to amount of coal on hand on January 8, 1904, as his books had all been sent to the head office in Pennsylvania since his first examination, and he refused to request their return. Upon the order of the referee, however, he subsequently testified that he had done so, but the firm declined to send the books or give any information.

In support of the motion to dismiss the attachment, the defendant files affidavits of Tierney, president, and Goodwill, secretary, of the Pocahontas Company; and of Castner, of the garnisheed firm, claiming in substance that the parties are all non-residents of Ohio; that Castner, Carran & Bullitt owe nothing to the Pocahontas Company; that the Pocahontas Company has no property in Ohio; that the Castner, Curran & Bullitt firm was not formed to do business in Ohio, and never had any property of the Pocahontas Company in its possession in Ohio, and has no contract with the Pocahontas Company made or to be performed in Ohio.

Against the motion the plaintiff presents, in addition to the testimony of Mather before the referee, affidavits of Justus Collins, president; Javius Collins, secretary and treasurer, and J. S. Jameson — all of plaintiff company — and H. W. O’Keefe, agent at Bluefield, West Virginia, of the Smokeless Fuel Company, all of whom say that the Pocahontas Company buy the output of the collieries mining Pocahontas coal and employs Castner, Curran & Bullitt as its excusive selling agent. They detail the method of business by which the agents sell and distribute the coal to purchasers through the various branches of the firm in the [78]*78United States and elsewhere; and aver that the firm sells an average of about ten thousand tons per month in and near Cincinnati; and attach schedules showing the exact quantities shipped to Castner, Curran & Bullitt, at Cincinnati, from December i, 1903, to January 8, 1904. They assert, on the basis of these figures, that Castner, Curran & Bullitt were indebted on January 8, 1904, for coal shipped and not yet paid for, about forty thousand dollars.

By way of rebuttal, affidavits of Tierney and Mather are presented. The former, having read the preceding affidavits, denies that the coal of the Pocahontas Company was sold by Castner, Curran & Bullitt, and declares that it became the property of Castner, Curran & Bullitt when loaded at the mine tipples, and denies that the Pocahontas Company ever shipped any coal to Castner, Curran & Bullitt at Cincinnati or to its customers. He attaches a copy of the contract between the Pocahontas Company and Castner, Curran & Bullitt governing their relations, claiming that it was made and its provisions carried out in West Virginia. He details the operations and procedure under the contract, claiming that Castner, Curran & Bullitt are purchasers of the coal in West Virginia, aiffi that it then and there becomes their property at an agreed price “subject to readjustment” according to the ultimate selling price, and that Castner, Curran & Bullitt “assume all risk and pay all incidental charges,” “but the Pocahontas Company holds Castner, Curran & Bullitt immediately responsible for the price of its product agreed upon as aforesaid.” He says that settlements are made each month with Castner, Curran & Bullitt-of Philadelphia, and that the Pocahontas Company have no dealings with local agents of Castner, Curran & Bullitt.

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Bluebook (online)
1 Hosea's Rep. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-coal-coke-co-v-pocahontas-co-ohsuperctcinci-1907.