Quaker Hill v. Guin

95 So. 2d 370
CourtLouisiana Court of Appeal
DecidedApril 26, 1957
Docket8667
StatusPublished
Cited by9 cases

This text of 95 So. 2d 370 (Quaker Hill v. Guin) 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
Quaker Hill v. Guin, 95 So. 2d 370 (La. Ct. App. 1957).

Opinion

95 So.2d 370 (1957)

QUAKER HILL, Incorporated, Plaintiff-Appellant,
v.
H. H. GUIN, Defendant-Appellee.

No. 8667.

Court of Appeal of Louisiana, Second Circuit.

April 26, 1957.
Rehearing Denied May 27, 1957.

*371 Hudson, Potts & Bernstein, Billye Adams, Monroe, for appellant.

McHenry, Lamkin, Snellings & Breard, Monroe, for appellee.

GLADNEY, Judge.

This appeal is from a judgment sustaining an exception of want of capacity leveled at a foreign corporation charged with doing business in Louisiana without having met the qualifications therefor. The basis for the trial court's decision stems from the provisions of LSA-R.S. 12:211, which prohibits a corporation doing business in this state from presenting any judicial demand before any court of this state until it has complied with the laws for doing business within the state.

The single issue raised is whether the appellant, Quaker Hill, Incorporated, is engaged in doing business within the state. The contention is made by its counsel it is engaged exclusively in interstate business and enjoys immunity from the Louisiana statute under the commerce clause of the Federal Constitution. (Const.U.S., art. 1, § 8, cl. 3). Whether or not a foreign corporation is, in legal contemplation, doing business in Louisiana, is a mixed question of law and fact, to be determined by the particular facts of its operations here. Dyer & Co. v. Ferguson, La.App.1946, 25 So.2d 92, Proctor Trust Co. v. Pope, La. App.1943, 12 So.2d 724.

Exceptor tendered in support of his exception the testimony of Milton E. Weaks, the District Sales Manager for the plaintiff corporation, having his residence in Baton Rouge, Louisiana, V. J. Pleasant, the local *372 Sales Manager for plaintiff corporation, residing in Monroe, Louisiana, and Rene Casadaban, a florist or horticultural dealer from Abita Springs, Louisiana.

Also placed in evidence was a certificate of the Secretary of State, certifying that as of December 19, 1956, the records of his office did not indicate Quaker Hill, Incorporated, a New York corporation, had ever filed a charter and qualified to do business in the State of Louisiana.

The testimony of Pleasant added nothing to that of Weaks. Casadaban testified over objection by counsel for appellant that he sold merchandise consisting of nursery stock, having a value of about $55,000 in 1956 to C. W. Stewart and Company of New York for shipment to either New York or Columbus, Mississippi. He further stated he knew Quaker Hill, Incorporated and C. W. Stewart and Company were in some way connected, but he did not know if the latter was the parent company of Quaker Hill, Incorporated. The testimony does not furnish any competent evidence as to the volume of business transacted by Quaker Hill, Incorporated, within the state.

Testimony of Weaks was the principal source of information concerning appellant's business in Louisiana. A résumé thereof discloses that Quaker Hill, Incorporated, has no property within the state; it employs four District Managers or salesmen, three of whom reside in Louisiana; its salesmen take orders for nursery stock from prospective customers in Louisiana, which orders, together with the purchase price or a part payment thereof, are transmitted to the New York office for acceptance or rejection there, and, if accepted, the plants so ordered are shipped from there or from Columbus, Mississippi; it does not require its salesmen to make collections, but they may take replacement orders for stock which has failed to grow; and further, the evidence shows that Quaker Hill, Incorporated, does not, itself, make any purchases of nursery stock in Louisiana. The method by which its sales are accomplished, together with comments thereon, is stated in the opinion of the District Judge:

"The method of making the sale is that the local salesman in Louisiana goes to the home of the prospective buyer and talks to him about his yard, what he should plant and how he should plant it and that he then makes an actual drawing on the premises of the lot and house to scale and marks thereon where each individual item that he seeks to sell should be planted. One of the plans in question of this company marked `Landscape Drawing' was exhibited to one of the witnesses on the stand, although it was not offered in evidence, it was identified by the witness. There is no question that this was landscape work, that is what landscaping is. Now Louisiana has certain laws governing the right to do that kind of work. It is admitted here the agents and salesmen of plaintiff have not complied with these laws. These salesmen, after doing this work and submitting this scale model plat to the purchaser, secure an order from the purchaser for the necessary-plants to carry out the landscaping plan. It has been testified by the agents, both the local and the agent in charge of both states, that an order is then signed here in Louisiana by the prospective purchaser. The wording in this order which is printed by the plaintiff in his blank provides that for the services rendered before the signing of the order the purchaser obligates himself not to cancel this order and to be bound thereby. It was also testified that the only services rendered prior to the signing of this order by the salesman is this drawing of the plat and advice as to what to plant and where to plant it, in other words, the actual landscaping. That service is made part of the contract under which the purchaser agrees to buy the plants to use in carrying out the landscaping plan. So there can be no question that the price paid therefor includes not only the price of the plants but covers the expense and costs referred to in the order, to-wit, the expense and costs of preparing the landscaping plan. The Court *373 does not see how any Court could hold this is not doing business in Louisiana." (Emphasis as supplied by District Judge.)

The judge a quo concluded appellant was actually doing business in Louisiana, principally because its salesmen solicited orders by use of a planting plan prepared by them, and the expense of preparing the plan was included in the price of the plants ordered, and, therefore, consists of selling services. Appellant strongly questions these findings, contending the evidence does not establish the expense and costs incident to preparation of the planting plan were included in the price for which the customer was billed. It is pointed out the subject clause in the contract, "because of services rendered and expenses incurred by the seller, I agree not to countermand this order", refers only to Quaker Hill, Incorporated, which is the seller. The services and expenses, it is argued, refer to the processing of the order, that is to say—preparation for shipping, shipping tags, etc.

Well recognized is the legal principle that under comity and general jurisprudence, there is a presumption in favor of the right of a foreign corporation to engage in commerce within the State of Louisiana. Thus, in Hess Warming & Ventilating Co., Inc., v. Home Comforts Corporation, 1944, 205 La. 1045, 18 So.2d 611, 612, our Supreme Court said:

"The rule is founded upon the presumption in favor of the right of a foreign corporation to do business or to sue, because it is always presumed that persons obey the law * * *."

As long as the business transacted by a foreign corporation is exclusively engaged in interstate commerce, it is protected by the commerce clause of the Federal Constitution Const.U.S., art. 1, § 8, cl. 3.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

LeBlanc v. Travelers Indemnity Co.
263 So. 2d 337 (Supreme Court of Louisiana, 1972)
Kirkeby-Natus Corporation v. Campbell
210 So. 2d 103 (Louisiana Court of Appeal, 1968)
LeFebure Corporation v. Lefebure, Incorporated
284 F. Supp. 617 (E.D. Louisiana, 1968)
Equitable Discount Corp. v. Jefferson Television Sales & Service
169 So. 2d 567 (Louisiana Court of Appeal, 1964)
Hattiesburg Manufacturing Co. v. Pepe
140 So. 2d 449 (Louisiana Court of Appeal, 1962)
J. PEREZ, SA v. Louisiana Rice Growers, Inc.
139 So. 2d 247 (Louisiana Court of Appeal, 1962)
JR Watkins Company v. Floyd
119 So. 2d 164 (Louisiana Court of Appeal, 1960)
Equitable Discount Corp. v. Dickinson
106 So. 2d 800 (Louisiana Court of Appeal, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
95 So. 2d 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quaker-hill-v-guin-lactapp-1957.