Rausch v. Commercial Travelers' Mut. Acc. Ass'n of America

38 F.2d 766, 1930 U.S. App. LEXIS 2395
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 30, 1930
DocketNo. 8390
StatusPublished
Cited by6 cases

This text of 38 F.2d 766 (Rausch v. Commercial Travelers' Mut. Acc. Ass'n of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rausch v. Commercial Travelers' Mut. Acc. Ass'n of America, 38 F.2d 766, 1930 U.S. App. LEXIS 2395 (8th Cir. 1930).

Opinion

VAN VALKENBURGH, Circuit Judge.

This is a suit by the administrator of the estate of Julius Carl Rauseh, deceased, against The Commercial Travelers’ Mutual Accident Association to recover on an accident policy in the sum of $5,000, payable in the event of the death of the insured during the continuance of said policy, as the result of external, violent, and accidental means. The policy was dated and became effective November 19, 1934. May 19, 1936, while the policy was in effect, the insured died as the result of gastritis, alleged to have been caused by the consumption of infected food, counted upon as external, violent, and accidental means within the terms of the policy. Appellant first sought to obtain service upon appellee, under the provisions of section 6310, R. S. Mo. 1919, by delivering a copy of the writ, together with a certified copy of the petition thereto attached, to the chief clerk to the superintendent of the insurance department of the state of Missouri; both the superintendent and deputy superintendent being absent from Cole county, their domicile, at the time of said service. The action, first filed in the circuit court of St. Louis, Mo., was removed to the district court of the United States for the Eastern Judicial District of Missouri, because of diversity of citizenship. Thereafter, appellee filed motion to quash this return of service upon the ground that it was not authorized by the provisions of section 6310, which, so far as the same is material here, provides as follows:

“Any insurance company not incorporated by or organized under the laws of this state, desiring to transact any business by any agent or agents in this state, shall first file with the superintendent of the insurance department a written instrument or power of attorney, duly signed and sealed, appointing and authorizing said superintendent to acknowledge or receive service of process issued from any court of record, justice of the peace, or other inferior court, and upon whom such process may he served for and in behalf of such company, in all proceedings that may be instituted against such company, in any court of this state or in any court of the United States in this state, and consenting that service of process upon said superintendent shall be taken and held to be as valid as if served upon the company, according to the laws of this or any other state.”

The motion to quash avers that the defendant never transacted any business in the state of Missouri, had never maintained an office therein for the transaction of its business, and had never maintained or had an agent in the state of Missouri for the trans[768]*768action of its business. Tbe motion further stated that the contract sued upon was both executed and delivered in the state of New York, and was a New York contract; that appellee never applied for nor obtained a license to do business in the state of Missouri, and had never consented or agreed by writing, word, or act that serviee of summons directed to it could be had upon it in suits pending in the state of Missouri, by serving such summons upon the superintendent of the insurance department of that state, or upon any other person whomsoever. Thereafter, appellant caused to be issued an alias writ of summons which was executed by serviee upon one Dr. J. A. Hartman, described as the agent and adjuster in Missouri for appellee. This serviee was sought to be made under the provisions of section 6312, R. S. Mo. 1919, which said section provides as follows:

“Additional service. — Serviee of summons in any action against an insurance company, not incorporated under and by virtue of the laws of this state, and not authorized to do business in this state by the superintendent of insurance, shall, in addition to the mode prescribed in section 6310, be valid and legal and of the same force and effect as personal serviee on a private individual, if made by delivering a copy of the summons and complaint to any person within this state who shall solicit insurance on behalf of any such insurance corporation, or make any contract of insurance, or collect or receive any premium for insurance, or who adjusts or settles a loss or pays the same for such insurance corporation, or in any manner aids or assists in doing either.”

To this also appellee filed its motion to quash on the ground that the return of service was in form defective, and upon the further ground that the defendant Hartman was not, and never had been, an agent or adjuster of appellee. In this motion, it is repeated that appellee had never transacted any business in the state of Missouri, nor maintained an office in that state for the transaction of its business, nor maintained or had an agent in the state for that purpose. The motions to quash were by the court sustained, and the plaintiff stated in open court that no further writ of alias summons would be applied for, and that he would proceed no further therein. The court ordered that the cause be dismissed for failure to prosecute.

It is insisted by appellee that, because no exception was taken to the action of the court in sustaining the motions to quash the returns of service, the record presents no question for the determination of the court and the appeal accordingly should be dismissed. ' At common law, when the lack of jurisdiction did not appear on the face of the record, the objection was taken by plea in abatement; latterly the motion to quash has been substituted and recognized in many cases. In the instant case testimony was taken, as upon plea in abatement, and, under the circumstances, we believe it to be more in harmony with the modem trend to view these motions to quash as pleadings forming a part of the record proper as distinguished from the bill of exceptions,' and, therefore, reviewable in the absence of exception.

The first step in our inquiry should be to determine whether appellee was doing business in the state of Missouri within the legal definition of that team. The Supreme Court in Minnesota Commercial Men’s Association v. Benn, 261 U. S. 140, 43 S. Ct. 293, 67 L. Ed. 573, has held that “a judgment by default rendered against a foreign corporation on process served on a state officer as its agent, in a State in which it has done no business, nor otherwise consented to be so served, is void,” of course because of want of proper serviee. See also Hussey Tie Co. v, Knickerbocker Ins. Co. (C. C. A. 8) 20 F.(2d) 892. Apparently counsel for appellant lacked confidence in, the jurisdiction sought to be obtained by service upon the representative of the state insurance department; for they caused an alias writ of summons to be issued and to be served upon ,Dr. Hartman of St. Louis as an agent and adjuster of appellee. The contention that appellee was doing business in Missouri is thus limited.

The writer of this opinion, in Higham v. Iowa State Travelers’ Ass’n (C. C.) 183 F. 845, 847, undertook to define the character of the agent or representative of a foreign insurance company upon which binding serviee can or cannot be made. It was there held that in laws providing such serviee “reference is plainly had to business operations of the corporation carried on within the state through the medium of agents appointed for that purpose, that are continuous, or at least of some duration, and not to business transactions that are merely casual. St. Louis Wire-Mill Co. v. Barb-Wire Co. et al. [C. C.] 32 F. 802. The power to make contracts for the company is recognized as indicative of such authority. Wall v. Ches[769]*769apeake

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Cite This Page — Counsel Stack

Bluebook (online)
38 F.2d 766, 1930 U.S. App. LEXIS 2395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rausch-v-commercial-travelers-mut-acc-assn-of-america-ca8-1930.