Palmer v. Avalon Oil Co.

120 So. 781, 10 La. App. 512, 1929 La. App. LEXIS 93
CourtLouisiana Court of Appeal
DecidedMarch 12, 1929
DocketNo. 3405
StatusPublished
Cited by3 cases

This text of 120 So. 781 (Palmer v. Avalon Oil Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palmer v. Avalon Oil Co., 120 So. 781, 10 La. App. 512, 1929 La. App. LEXIS 93 (La. Ct. App. 1929).

Opinions

ODOM, J.

Plaintiff brings this suit to collect certain amounts due him and his minor son on salary, and the sum of $22.56, alleged to have been collected by defendants from certain laborers for account of plaintiff and not paid by defendants, and asks judgment against the defendant corporation in solido.

The suit is in rem, plaintiff alleging that both defendants are foreign corporations not authorized to do business in this State and that neither had designated an agent in this State upon whom service and citation might be made. In order to obtain jurisdiction, plaintiff asked that the property of defendants within the parish, or a sufficient amount thereof to satisfy his claim, be attached. Under orders of the Court, certain property belonging to defendants was attached and citation and service made by posting and upon a curator ad hoc appointed by the Court.

Both defendants filed exceptions to the petition and citation on the grounds that, to plaintiff’s knowledge, they both maintained an office in the Levy Building, City of Shreveport, this State, in which city their secretary-treasurer and other officers resided “where service of citation could easily be made upon your exceptors, and, in the alternative, show that as exceptors are foreign corporations doing business in this State, cannot be brought into Court by service and citation through a curator ad hoc, but that in event of failure to obtain service and citation upon your ex-ceptors through its officers, living and residing in the City of Shreveport, Louisiana, service and citation shoald have been made according to Act 267 of 1914, as amended by Act 197 of 1918, upon the Secretary of State of Louisiana.’’

The Court overruled the exception, whereupon, the defendants, with reservar tions, filed answer denying the debt, and prayed that the attachment be dissolved, with $50,000.00 damages. There was judgment in favor of plaintiff, as prayed for, sustaining the attachment, and defendants appealed.

[514]*514ON EXCEPTION TO CITATION.

The main point presented for onr consideration and decision is whether defendants have been cited and served according to law.

It is conceded that both defendants are foreign corporations not engaged in the business of insurance, and that they have not, as a condition precedent to being authorized to do business in this State, filed in the office of the Secretary of the State a written declaration of their domicile and place of business and the name of their agent or agents upon whom process may be served, as required by Act 184 of 1924, p. 286, nor with Act 194 of 1912, p. 382, making it the duty of foreign corporations doing business in this State to file with the clerk of the District Court in the parish in which it establishes a place of business, the name of the person upon whom process may be served.

The testimony shows that when this suit was filed, and for a considerable time prior thereto, the defendants were engaged in drilling for oil in the Parish of DeSoto and had brought in a producing well in that parish known as “Payne No. 1.” They had also been operating just across the state line in Texas, and had there drilled a well known as the “Pickering” well. While engaged in these operations, they maintained an office in the Levy Building, in the City of Shreveport, Caddo Parish, from which all these operations were carried on. But they had overlooked, or at least had failed, to comply with the laws of this State requiring foreign corporations to make declaration of their place of business and to appoint an agent upon whom service of process might be made.

As we understand the contention made by counsel for defendants, it is that even though they had failed to comply with these laws, the fact that they were engaged in business in this State and maintained an office here in which its officers could be found, rendered them immune from the drastic. remedy of attachment, as provided in the Code of Practice, Article 240, authorizing attachments “where such debtor resides out of the State;” or, in any event, under the circumstances of this case, the service should not have been made by posting and upon a curator ad hoc, but upon the Secretary of State, as provided in Paragraph (c), Sec. 26, Act 267 of 1914, p. 521, and sub-paragraph (c), paragraph (6), Sec. 1, Act 179 of 1918, p. 334.

Taking up these points in reverse order, we note that counsel in support of his contention that service should have been made on the Secretary of State, under the acts above noted, cites the case of McGovern vs. United Railway Men’s Oil Association, 157 La. 966, 103 So. 280, which he says is controlling on the point. But that case is not authority for the contention here made.

In tliat case, it was alleged and it was true, that the defendant was a foreign corporation and at the instance of plaintiff attachment was levied on the property of defendant, and service was made on a curator ad hoc and by posting. The defendant excepted to the citation and contended that service should have been made upon the Secretary of State. The Court held in the origina^ opinion and on rehearing that, under1 the conditions there shown to exist, there was in fact no citation and service at all, and counsel asks this Court to so hold in the case at bar.

But counsel has overlooked the fact that the distinction between the facts as found by the Court in that case and those which we find here is marked and manifest. In that case, the fact was that the defendant, [515]*515which was a foreign corporation, had complied with the law, and, said the Court on rehearing:

“* * * availed itself of all of the advantages of the laws of this State, it had duly appointed an agent for the purpose of service of process, and at the time this suit was instituted, it was maintaining such agent in the State and in the jurisdiction in which the suit was brought.”

There, as here, the suit was in rem, and the Court held that, under such circumstances, service on a curator ad hoc was no citation at all. In that case, the corporation, although organized in another state, had, by complying with our statutes, made itself to all intents and purposes, a domestic corporation. When a foreign corporation comes to this State to engage in business, and, as a condition precedent, complies with our laws by designating a domicile and appointing an agent, it thereafter enjoys all the privileges and benefits, as well as immunities, of a domestic corporation. In matters of jurisdiction, such corporations are residents of this State and not absentees. Therefore, their property need not be attached in order to obtain jurisdiction.

Now, what was the situation when the plaintiff in the case at bar brought his suit? His debtors were corporations organized in a state other than Louisiana. They had no legal domicile, no agent here. They were, therefore, absentees. By the express tefms of Article 240 of the Code of Practice, a creditor may obtain an attachment “when such debtor resides out of the State,” and in suits in rem, such as this was, the attachment “was the very foundation of the suit and stands in the place of the citation required in ordinary proceedings.”

Burgin Bros. & McCane vs. Barker Baking Co., 152 La. 1075, 95 So. 227.

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Bluebook (online)
120 So. 781, 10 La. App. 512, 1929 La. App. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-avalon-oil-co-lactapp-1929.