Loyal Mystic Legion of America v. Brewer

90 P. 247, 75 Kan. 729, 1907 Kan. LEXIS 122
Supreme Court of Kansas·Decided May 11, 1907·No. No. 15,012·Published·Cited by 4 cases

Opinion

The opinion of the court was delivered by

Greene, J.:

Keziah Bell Brewer recovered a judgment in the district court of Wyandotte county against the Loyal Mystic Legion of America, a foreign fraternal beneficiary association authorized to do business in Kansas, upon a benefit certificate issued by the association to John W. Brewer, her husband, in which she was the beneficiary. The defendant prosecutes error to this court.

Summons was served upon the state superintendent of insurance. The defendant appeared specially and challenged the jurisdiction of the court for the following reasons:

“Comes now the defendant and appears specially for the sole and only purpose of objecting to the jurisdiction of the court over the person of the defendant, and the subject-matter of the action, for the following reasons: That no proper service was made upon the proper officer as required by law, as shown by the return filed herein; second, that- the defendant was not sued in the county in which it kept its principal place of business, or in which the beneficiary contract was made, or in which the death of the member occurred, or in the county of the residence of such deceased member, as shown by the petition filed herein.”

[731] This motion was denied, and this is the first alleged error of which complaint is made.

Chapter 23 of the Laws of 1898 is an act providing for the organization and regulation of beneficiary orders and associations. Section 5 thereof reads:

“Each such association now doing or hereafter admitted to do business within this state, and not having its principal office within this state, and not being organized under the laws of this state, shall appoint, in writing, the superintendent of insurance and his successors in office to be its true and lawful attorney, upon whom all lawful process in any action or proceeding against it may be served, and in such writing shall agree that any lawful process against it which is served on said attorney shall be of the same legal force and validity as if served upon the association, and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of such certificate, certified by said superintendent of insurance, shall be deemed sufficient evidence thereof, and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service upon such attorney shall be deemed sufficient service upon such association.” (Gen. Stat. 1901, § 3572.)

The defendant had been admitted to do business in this state, had appointed in writing the superintendent of insurance and his successors in office to be its true and lawful attorney, and had agreed that any lawful process against it which might be served on its attorney should be of the same legal force and validity as if served upon the association.

In respect of the venue of actions against, such associations this statute differs from those providing for the venue of actions against foreign corporations generally, and foreign insurance companies. It will be observed, that the venue in the latter cases is fixed by statute in the county in which the cause of action arose or where the plaintiff resides. (Gen. Stat. 1901, §§ 1262, 3404.) No such provision is found in the act providing for the organization and regulation of foreign fraternal beneficiary associations. The action be[732] ing transitory, unless the venue has been expressly laid by statute section 4483 of the General Statutes of 1901 applies. That section provides:

“An action other than one of those mentioned in the first three sections of this article, against a non-resident of this state, or a foreign corporation, may be brought in any county in which there may be property of or debts owing to said defendant, or where said defendant may be found; but if said defendant be a foreign insurance company, the action may be brought in any county where the cause, • or some part thereof, arose.”

The statute requiring as a condition precedent to the entering of this state by a foreign fraternal beneficiary association that it shall appoint in writing the superintendent of insurance its attorney upon whom all process against it may be served was enacted for the express purpose of giving any .court in the state authority to obtain jurisdiction of such corporations in any county in the state where an action might be commenced against it.

Another objection to the jurisdiction of the trial court which is insisted upon is based on the fact that both plaintiff and defendant were non-residents of the state when the action was commenced, and that the cause of action arose outside the state. The answer to this is that the defendant, while incorporated under the laws of another state, had, before the action was commenced, voluntarily entered the state for the purpose of conducting its corporate business in the state, and in compliance with our statute had submitted itself to the processes of the courts of the state as fully and to the same extent as if it were in fact a resident of the state. This same principle was involved in Insurance Co. v. National Bank, 58 Kan. 86, 48 Pac. 592. In that case both the plaintiff and defendant were foreign corporations, and the cause of action arose outside the state. Mr. Justice Allen, speaking for the court, upon this question, said:

“The old theory that a corporation resides only in [733] the state of its creation no longer obtains. It is now held that, for the purpose of conferring jurisdiction on the courts, a corporation is present in any place where it transacts its business; and that service of process may be made on its agents through whom, .as its instruments, its business is transacted. The intangible corporation is held to be present wherever its business is carried on, whether that be in the state where its charter was obtained, or in any other sovereignty. St. Claire v. Cox, 106 U. S. 350, 1 Sup. Ct. 354, 27 L. Ed. 222.” (Page 88.)

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Loyal Mystic Legion of America v. Brewer, 90 P. 247, 75 Kan. 729, 1907 Kan. LEXIS 122 (kan 1907).

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