Mardenborough v. Government of the Virgin Islands

235 F. Supp. 468, 5 V.I. 57, 1964 U.S. Dist. LEXIS 8675
CourtDistrict Court, Virgin Islands
DecidedNovember 6, 1964
DocketCivil No. 95-1964
StatusPublished
Cited by3 cases

This text of 235 F. Supp. 468 (Mardenborough v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mardenborough v. Government of the Virgin Islands, 235 F. Supp. 468, 5 V.I. 57, 1964 U.S. Dist. LEXIS 8675 (vid 1964).

Opinion

GORDON, District Judge

This is an action brought by the plaintiffs against the defendants wherein the plaintiff, Adina Mardenborough, alleges that while on the premises of the Charlotte Amalie High School Auditorium attending a concert she fell and suffered certain injuries. The negligence which the plaintiff alleges is that the construction, by its very nature, to wit: a sloping floor, was dangerous, therefore the defendant Government of the Virgin Islands, the owner of the building, should be held liable.

The defendant, Government of the Virgin Islands, on July 16, 1964 filed a third party complaint against the Fluor Corporation. In its complaint, the Government alleges that: the third party defendant, the Fluor Corpora[59]*59tion, Ltd., was a corporation organized under the laws of the State of California; it was given permission to conduct business in the municipality of St. Thomas and St. John1 as a foreign corporation beginning in 1953; it consented to be sued in the Courts of the Virgin Islands upon all causes of action arising against it in the Virgin Islands; it, as an independent contractor, did erect, and construct, the building in which the plaintiff was injured; and it was negligent in the construction of said building.

The third party defendant has filed a motion to quash the service of process. Briefs in support and in opposition to the motion were filed and upon agreement by the parties the motion was submitted for decision upon the briefs and supporting documents. This motion to quash the service of process is the only question the Court has to decide at this time and what will follow is the Court’s opinion only as to the service of process.

The summons and third party complaint were duly served upon George H. T. Dudley as resident agent for the Fluor Corporation, Ltd., and upon the Government Secretary2 on July 17, 1964, and the return of service was made on the same day by the United States Marshal.

The question involved herein is whether the third party defendant was properly served through substitute service of process upon the Government Secretary and the resident agent in the Virgin Islands. A background statement of the defendant’s activities in the Virgin Islands and a factual discussion of the service of process would be most helpful.

On September 8, 1953 the Fluor Corporation through its president consented in writing to be sued in the courts of [60]*60the Virgin Islands upon all causes of action arising in the Virgin Islands and that service of process was to be made upon George H. T. Dudley as resident agent. Work on the Charlotte Amalie High School commenced sometime in the year 1953 and was completed in the year 1955. The Government was notified by letter from the construction manager of the Fluor Corporation that all the work was completed. By a letter dated April 9, 1958 the Fluor Corporation advised the Government Secretary that:

“This is to advise that since the Fluor Corporation, Ltd., has had no operations in the Virgin Islands since 1955 and inasmuch as no assets are presently situated there, we feel that the filing of the Annual Report will serve your office no useful purpose at this time. Consequently, no report will be filed unless we are advised to the contrary.”

The Government argues that since the third party defendant never withdrew the consent to be sued or having revoked the same, the consent to substitute service of process remains in full force and effect. Furthermore, the Government contends that there has been no withdrawal from the Virgin Islands pursuant to 13 Virgin Islands Code § 407(a)(1) and supports this by an affidavit of the Government Secretary, Cyril E. King.

“§ 407. (a) Any foreign corporation which shall have qualified to do business in the Virgin Islands under the provisions of section 401 of this title may surrender its authority to do business in the Virgin Islands and may withdraw there from by filing with the Government Secretary a — •
(1) certificate signed by its president or a vice-president and under its corporate seal attested by its secretary or an assistant secretary setting forth (A) that it surrenders its authority to transact business in the Virgin Islands and withdraws therefrom; and (B) the address to which the Government Secretary may mail any process against the corporation that may be served upon it; . . . .”

The Court is of the opinion that the Fluor Corporation substantially complied with 13 Virgin Islands Code [61]*61§ 407(a)(1) by the letter dated April 9, 1958. If the Government would have contested such a withdrawal and sent a reply as requested by the Fluor Corporation to the effect that this letter did not constitute withdrawal, then the Government’s contention would be on a more tenable ground. The Government cannot argue that they were never put on notice of the Fluor Corporation’s withdrawal from doing business in the Virgin Islands.

The Government further argues that with respect to factual withdrawal pursuant to 13 Virgin Islands Code § 533, there is no basis for dependence by the Fluor Corporation because the section is not self executing. It goes on in its argument that as a condition for revocation, two steps are necessary: (1) The Commissioner of Finance has to notify the Government Secretary that the foreign corporation has not paid its annual franchise tax; and (2) upon such notification, the Government Secretary shall revoke such authority to do business. The logical conclusion to the Government’s argument is that if 13 Virgin Islands Code § 533 is not followed by the Government Secretary, then any and all corporations who have not paid their franchise tax can have the Sword of Damocles held over their heads whether they áre doing business or are defunct.

The Court agrees with the Government that 13 Virgin Islands Code § 533(c) (1), (2) is not self executing, but that affirmative steps must be taken by the Government Secretary to revoke the corporation’s authority to do business in the Virgin Islands. Yet, the law directs the Commissioner of Finance to notify the Government Secretary that the franchise tax has not been paid. If the Government does not see fit to follow the laws of the Virgin Islands, the Court will not penalize the innocent party.

The Court would like to discuss the law pertaining to substitute service of process as is generally held in the United States.

[62]*62The doctrine of Pennoyer v. Neff3 established for a period of sixty-eight years that the due process clause of the Fourteenth Amendment was violated when a court rendered personal judgment against a nonresident defendant without acquiring jurisdiction over him, and that as a matter of due process it could not acquire jurisdiction by mere service of process outside the forum. It was not until International Shoe Company v. Washington4 that a new or extended basis for jurisdiction was established by the Supreme Court. The trend has been away from the emphasis on territorial limitations and toward the emphasis on providing adequate notice and an opportunity to be heard; from the court with immediate power over the defendant toward the court in which both parties can most conveniently settle their dispute.

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In Re Tutu Wells Contamination Litigation
846 F. Supp. 1243 (Virgin Islands, 1993)
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846 F. Supp. 1243 (Virgin Islands, 1993)
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415 P.2d 617 (Nevada Supreme Court, 1966)

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Bluebook (online)
235 F. Supp. 468, 5 V.I. 57, 1964 U.S. Dist. LEXIS 8675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mardenborough-v-government-of-the-virgin-islands-vid-1964.