Mergenthaler Linotype Co. v. Herrmann

211 S.W.2d 633, 1948 Tex. App. LEXIS 1278
CourtCourt of Appeals of Texas
DecidedMay 7, 1948
DocketNo. 14943.
StatusPublished
Cited by12 cases

This text of 211 S.W.2d 633 (Mergenthaler Linotype Co. v. Herrmann) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mergenthaler Linotype Co. v. Herrmann, 211 S.W.2d 633, 1948 Tex. App. LEXIS 1278 (Tex. Ct. App. 1948).

Opinion

HALL, Justice.

This is an appeal from an order overruling a plea of privilege in a suit pending in the District Court of Cooke County, Texas.

Appellee, A. E. Herrmann, a resident of Cooke County, sued appellant, Mergen-thaler Linotype Co., a foreign corporation, for recovery of damages in the sum of $2042.50, alleged to be due appellee from appellant because of its failure to deliver appellee a linotype machine which he contracted to purchase from appellant.

*634 The attorney for appellant filed an ami-cus curiae affidavit informing the court that service of citation was insufficient in that the service on one A. B. McCorkle was insufficient for the reason that such person was not such an agent of the appellant upon whom service may be had as contemplated by the statute.

A part of said amicus curiae reads as follows: “That the defendant is a corporation, duly incorporated under the laws of the State of New York, with its domicile in Brooklyn, in said State. That A. B. Mc-Corkle is neither the President, Vice-President, Secretary, Treasurer, General Manager, Agent, or any other class of person on whom the statutes authorizes service of citation.” This suggestion was by the court overruled. Then followed the filing of appellant’s plea of privilege and controverting affidavit by appellee, the court overruling the plea, hence this appeal.

The pertinent portion of appellant’s plea of privilege in question is as follows : “That it was at the time of the institution of this suit and at the time of service of citation and process on it herein and is now at the time of making and filing this plea of privilege domiciled in, a resident and citizen of the City, County and State of New York with agents there and not elsewhere except for its representative in the Cou'nty of Dallas, State of Texas.”

Appellee relies upon subdivision 3 of Article 1995, Vernon’s Anno.Rev. Civ.St, to maintain venue in Cooke County, Texas. '

Appellant presents one point of error, to-wit: “Where a foreign corporation has in Texas an agent for service, it is suable only in the county where such agent resides, section 23 of Article 1995 of the Revised Civil Statutes of Texas having application rather than section 3.”

Appellant strenuously argues in its brief that since the law recognizes that a corporation may have several residences in different states and that such residences must necessarily be where its agents reside and since the court overruled the amicus curia affidavit, it impliedly held that A. B. Mc-Corkle was appellant’s agent and as it is undisputed that McCorlde’s residence was in Dallas County, it necessarily follows that appellant’s residence was in Dallas County, Texas.

Section 3 of Article 1995, Vernon’s Anno. Rev.Civ.St., is as follows: “If one or all of several defendants reside without the State or if their residence is unknown, suit may be brought in the county in which the plaintiff resides.”

That portion of section 23 of our venue statute relied upon by appellant reads as follows: “Suits against a private corporation, association, or joint stock company may be brought in the county in which its principal office is situated; or in the county in which the cause of action or part thereof arose; or in the county-in which the plaintiff resided at the time the cause of action or part thereof arose, provided such corporation, association or company has an agency or representative in such county; or, if the corporation, association, or joint stock company had no agency or representative in the county in which the plaintiff resided at the- time the cause of action or part thereof arose, then suit may be brought in the county nearest that in which plaintiff resided at said time in which the corporation, association or joint stock company then had an agency or representative. * * * ”

Section 27 refers to foreign corporations, which provisions are substantially the same as section 23. Exceptions to the venue statute granting a plaintiff right to sue in another than county of defendant’s domicile were not enacted for the purpose of establishing citizenship by a defendant, therefore cannot be relied upon to support a plea of privilege by a defendant because it becomes immaterial whether or not defendant had an agent in Dallas County under the provisions of such exceptions as would give the plaintiff a right to sue in Dallas County, but defendant’s right to change venue on a plea of privilege depends entirely upon whether it has a residence in a county in Texas at the time the plea of privilege is filed. Appellant affirmatively pleads that it is a resident of New York and nowhere does it plead that it is a resident of Texas. Such pleadings constitute judicial admissions. It is the general rule that a corporation is an inhabitant of the state under whose law it is incorpo *635 rated but that it has a residence wherever it conducts its ordinary business. Pittsburg Water Heater Co. of Texas v. Sullivan, 115 Tex. 417, 282 S.W. 576.

We do not necessarily agree with appellant’s theory that venue will lie in the county where the corporation has a representative residing but we find that venu'e will lie in the county where such agent performs his duties by transacting charter purposes of the corporation. Rudco Oil & Gas Co. v. Ogden, Tex.Civ.App., 167 S.W.2d 586; Sharp v. Damon Mound Oil Co., 31 Tex.Civ.App., 562, 72 S.W. 1043.

It has been twice judicially determined by this state that appellant was not maintaining a place of business within this state but merely had soliciting agents or canvassers who could only submit orders for approval at its main office in New York State and that said Company was,therefore not engaged in business within the state and that it did not have a permit to do business in the state. North v. Mergenthaler Linotype Co., Tex.Civ.App., 77, S.W.2d 580, writ refused; Pope v. Mergenthaler Linotype Co., Tex.Civ.App., 131 S.W.2d 668.

By citing these cases, we do not mean to hold that even though a foreign corporation does not have a permit to do business in Texas, such fact will preclude it from urging a plea of privilege to be sued in the county where it maintains an office and conducts its business; for this is the ultimate criterion of maintaining venue in a suit in this state by both a domestic and a foreign corporation. McMullen v. Burton Auto Spring Corporation, Tex.Civ.App., 138 S.W.2d 823.

The duties of an agent which are strong enough to establish venue in the county in which he is carrying on the business of the corporation is that of prosecuting the charter purposes of the corporation. Northern Illinois Finance Corporation v. Sheridan, Tex.Civ.App., 141 S.W.2d 434.

There is a vast distinction between an agent or representative carrying on the charter purposes of a corporation in a certain county than a person residing there upon whom service may be had on the corporation. Under Article 2031a a foreign

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211 S.W.2d 633, 1948 Tex. App. LEXIS 1278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mergenthaler-linotype-co-v-herrmann-texapp-1948.