Phillips Petroleum Co. v. Smith

1936 OK 560, 61 P.2d 184, 177 Okla. 539, 107 A.L.R. 858, 1936 Okla. LEXIS 414
CourtSupreme Court of Oklahoma
DecidedSeptember 29, 1936
DocketNo. 26412.
StatusPublished
Cited by12 cases

This text of 1936 OK 560 (Phillips Petroleum Co. v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Petroleum Co. v. Smith, 1936 OK 560, 61 P.2d 184, 177 Okla. 539, 107 A.L.R. 858, 1936 Okla. LEXIS 414 (Okla. 1936).

Opinion

RILEY, J.

This action was commenced in the superior court of Seminole county by defendant in error, a resident of Pottawatomie county, to recover damages for personal injuries alleged to have been caused by the negligence of plaintiff in error in setting off a charge of dynamite near plaintiff’s residence. The alleged cause of action arose in Pottawatomie county.

Plaintiff alleged in her petition that defendant is a foreign corporation authorized to do business in Oklahoma, with its principal place of business in Bartlesvi.le; that said company owned property, both real and personal, in Seminole county and maintained various agents in said county.

Summons was issued directed to the sheriff of Oklahoma county, and by him served by delivery of a true and certified copy thereof to Bruce McClelland, the designated service agent of said company.

Plaintiff in error filed a special appearance and motion to quash service of summons and dismiss for want of jurisdiction. Therein it was alleged that the petition showed upon its face that plaintiff was not a resident of Seminole county; that the entire alleged cause of action arose in Pottawatomie county and not in Seminole county, and that plaintiff’s principal place of business is in Bartlesville. The motion then alleged that said defendant company is a corporation organized ■ under the laws of the state of Delaware, and is authorized to do business in Oklahoma and had appointed a s- rvice agent residing in Oklahoma county, and that none of the officers or directors of said corporation are residents of Seminole county.

This motion was verified by the affidavit of K. S. Adams, secretary of the corporation. ’There was no denial that said corporation owned property, both real and personal, in Seminole county, or that it maintained agents in said county.

The motion was overruled, and defendant filed its answer. The cause was tried to a jury, resulting in a verdict and judgment for plaintiff, and defendant appeals.

Three propositions are presented.

Under the first proposition it is contended that sections 115 and 125, O. S. 1931, relative to venue of transitory actions against foreign corporations, violates the “equal protection of the laws” clause of' the 14th Amendment to the Constitution of the United States, in that they permit such an action to be brought in the county in which there may be property of or debts owing to such defendant, or where such defendant may he found.

Section 125, O. S. 1931, provides:

“Any foreign corporation, doing business in the state of Oklahoma, and any person now or hereafter having any cause of action against such corporation, arising on contract, tort, or otherwise, may file suit in any county in the state of Oklahoma where the plaintiff resides or whore said corporation has its principal place of business, or has property, or in any county where said corporation has an agent appointed upon whom service of summons or other process niay be had.”

This court had under -consideration the provisions of section 125, supra, in Prairie Oil & Gas Co. v. District Court of Grady County, 71 Okla. 32, 174 P. 1056. It was there held that the provisions thereof were not violative of the Constitution of this state. The theory of violation of the “equal protection” clause of the federal Constitution was not presented.

A somewhat similar question was involved in Owens v. Clark, 154 Okla. 108, 6 P. (2d) 755. There the alleged discrimination was as between domestic corporations and individuals. There the provisions of section 202, C. O. S. 1921 (112 O. S. 1931), relative to venue of actions against domestic corporations, werei invoked. It was there held that the provisions of said section, permitting an action to be brought against a domestic corporation in any county where the cause of action or any part thereof arose without a like provision as to foreign corporations and individuals, do not violate the equal protection clause of the Fourteenth' Amendment to the United States Constitution.

In Power Mfg. Co. v. Saunders, 71 L. Ed. 1165, the Supreme Court of the United States held that the statutes permitting a foreign corporation to be sued in any county of the state when it has established its *541 right to doi business therein, whether it dors business, or is present or has a representative in the county of suit or not, while suits against domestic corporations and individuals can be brought only in counties where they are found or do business or have a representative, unconstitutionally deprive foreign corporations of equal protection of the laws and conflict with the equal protection clause of the Fourteenth Amendment. But in this state the laws operate alike as to domestic and foreign corporations to the extent that actions may be brought against either in any county where a service agent resides.

A somewhat similar question was involved in Bain Peanut Co. v. Pinson, 282 U. S. 499, 75 L. Ed. 482. There the claim of unequal protection was as between domestic corporations and individuals in similar situations, in that the legislation applicable permitted suits against corporations in any county in which the cause of action arose, while unincorporated concerns or individuals were assumed not subject to a suit outside the county of their domicile in a similar situation. The legislation was upheld. Mr. Justice Holmes, speaking for the court, said:

“The interpretation of constitutional principles must not be too literal. We must remember that the machinery of government would not work if it were not allowed a little play in its joints. In deciding whether a corporation is denied the equal protection of the laws when its creator establishes a more extensive venue for actions against it than are fixed for private citizens, we have to consider, not a geometrical equation between a corporation and a man, but whether the difference does injustice to the class generally, even though it bear hard in some particular case, which is not alleged or proved here.”

And:

“The range of the state's discretion is large.”

Applying the rule there stated, the inquiry is whether the laws applicable do injustice to foreign corporations as a class generally, and not as to a particular corporation in any given case.

If protection of fundamental rights by equal laws equally administered is afforded, the federal Constitution does not forbid a person to seek a forum as against a foreign corporation from which he might be excluded as against a domestic corporation or an individual. Cincinnati St. Ry. Co. v. Snell. 193 U. S. 30, 48 L. Ed. 604.

However, it may be said section 125 creates a situation much more favorable to foreign corporations than to domestic corporations ; in that foreign corporations doing business in this state are permitted to commence an action in any county where it has its principal place of business, or has property, or has an agent appointed upon whom service of summons or other process may be had.

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Bluebook (online)
1936 OK 560, 61 P.2d 184, 177 Okla. 539, 107 A.L.R. 858, 1936 Okla. LEXIS 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-petroleum-co-v-smith-okla-1936.