Reeves v. American Homes Corp.

26 Fla. Supp. 117
CourtBrevard County Court
DecidedDecember 29, 1965
DocketNo. 2077
StatusPublished
Cited by1 cases

This text of 26 Fla. Supp. 117 (Reeves v. American Homes Corp.) is published on Counsel Stack Legal Research, covering Brevard County Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeves v. American Homes Corp., 26 Fla. Supp. 117 (Fla. Super. Ct. 1965).

Opinion

JOE A. COWART, Jr., Judge.

This cause coming on this day for hearing upon the motion of the corporate defendant under rule 1.38 of the 1954 Rules of Civil Procedure to set aside the judgment entered herein on September 21, 1965, final consequent upon default for want of proper pleading, and the court having considered said motion, the two affidavits attached thereto, and the affidavit and report from the secretary of state attached to the plaintiff’s motion to quash the defendant’s motion and argument of counsel, finds as follows —

[118]*118Service of process on the defendant corporation was made by delivery of complaint and summons upon “John Genoni, Jr., Pres.” on August 18, 1965. Thereafter final judgment was duly entered following failure of the defendant to plead within the time allotted by law and the rules of this court.

There is no suggestion of any technical procedural deficiencies in the entry of the default or the judgment, or of any fraud, misrepresentation or other misconduct of the plaintiff. The sole contention is that the judgment is void because of insufficiency of service of process.

With its motion the defendant has filed two affidavits, one by John P. Genoni, Jr., and the other by Joseph J. Sambataro, both of which affirm the fact that Genoni was president of the defendant corporation until January 13, 1965, on which date he resigned and that Sambataro then succeeded him as president, and from and after that date Genoni — “did terminate all affiliation of any nature whatsoever with the said corporation, either as an officer, director, stockholder, employee or otherwise.”

In opposition to the motion being considered, the plaintiff filed a motion to quash, to which is attached an affidavit verifying the receipt of an attached communication from the office of the secretary of state dated November 8, 1965, indicating that the records in the office show John Geroni, Jr. to be the president of the defendant corporation.

The three affidavits and the report from the secretary of state constitute all the evidence presented by the parties to the court to resolve the factual questions necessarily involved in a ruling on the motion to vacate the final judgment.

While it might be argued that the evidence before the court on the fact in issue on the motion, that is, the relationship of Genoni to the defendant corporation on the date of service, is not clear and convincing but is in conflict with the sheriff’s return and the records of the secretary of state indicating that Genoni was president and the two affidavits attached to the motion indicating to the contrary, as a practical matter it is obvious, and the court finds, that Genoni did resign as president on January 13, 1965, but that the change in the corporation management was not reported to the secretary of state and that the deputy sheriff serving the process, having no personal knowledge of Genoni’s relationship to the defendant corporation but following the plaintiff’s attorney’s instructions, served him over his objection that he was no longer president of the defendant corporation.

The question initially presented, therefore, is — Is service of process on a corporation valid when served upon a person who in [119]*119fact has resigned as an officer of the corporation although the corporation has failed to report such change in its management to the secretary of state as required by statute?

A corporation, being an artificial entity, cannot be personally served with process, and can be served only through an officer or agent of the company or someone designated by law to receive service of process in its behalf. §47.17, Florida Statutes, designates officers and agents of corporations upon whom process against corporations may be served and the order in which service must be attempted. When the officer or agent upon whom service of process in an action against the corporation may be made is specified by statute, service must be made upon that particular officer or agent; otherwise the service is insufficient. Generally, the validity of service upon an alleged officer or agent of a corporation is determined by the relationship of such person to the corporation at the time of the service of process, and not by his relationship to the corporation at any other period either before or after service.

A corporation officer has an unqualified right at common law to resign at will and his resignation is effective without acceptance by the corporation or the state. There appears to be no statutory limitation in Florida upon the right and power of a corporate officer to resign his office other than the provision in §608.40 to the effect that the president, secretary and treasurer “shall serve until their successors are chosen and qualify.” This limitation appears to have no application in the instant case because Genoni’s successor, Sambataro, apparently immediately succeeded Genoni upon his resignation on January 13, 1965.

The resignation of an officer of a private corporation terminates his position and status, and service of process on such resigned officer is not service on the corporation. See Western Pattern & Mfg. Co. v. Am. Metal Shoe Co., 175 Wisc. 493, 185 N.W. 535, 20 A.L.R. 264.

§608.32 requires all corporations to file with the secretary of state on or before July 1 of each year a sworn report giving, among other things, the names and addresses of each officer. The defendant corporation failed to file such a report on July 1, 1965, showing the change in the office of its president. It is the custom in Florida for the attorneys for plaintiffs to obtain from the secretary of state information as to the officers of a defendant corporation and furnish such information to the sheriff for service of process upon such officers pursuant to §47.17. The plaintiff here contends that the resignation of Genoni is ineffective, insofar as service of process upon him as an officer of the corporation is concerned, until his resignation is reported to the secretry of state pursuant to this statute or, in the alternative, that the corporation is, in effect, estopped [120]*120from asserting his resignation to defeat service of process upon it because of its own failure to comply with this statute.

While the position of the plaintiff is understandable and the failure of a corporation to file such an annual report is an imposition upon the right of the public to obtain information for the purpose of service of process upon the officers of a corporation and for other legitimate purposes, nevertheless, the statute itself does not appear to be a limitation upon the right of an officer to resign; nor to cause service of process upon such resigned officer to be effective. It is the opinion of this court that notwithstanding the failure of a corporation to report the resignation of one of its officers to the secretary of state as required by §608.32, the resignation of such officer can be effective, and that service of process upon him as such officer after the date of his resignation is not valid service upon the corporation.

The plaintiff also contends Genoni was a de facto officer, citing 7 Fla. Jur., Corporations, §262, page 558, and that he had apparent or ostensible authority, citing 7 Fla. Jur., Corporations, §264, pp. 560, 561, for service upon him as president to bind the defendant. However, the failure to notify the office of the secretary of state would not, standing above, be sufficient to factually support these theories, and the court finds them inapplicable under the facts before it.

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Bluebook (online)
26 Fla. Supp. 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-american-homes-corp-flactyct5-1965.