Rodrique v. Yale & Towne, Inc.

251 F. Supp. 73, 1966 U.S. Dist. LEXIS 7856
CourtDistrict Court, D. South Carolina
DecidedMarch 12, 1966
DocketCiv. A. No. 8744
StatusPublished

This text of 251 F. Supp. 73 (Rodrique v. Yale & Towne, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodrique v. Yale & Towne, Inc., 251 F. Supp. 73, 1966 U.S. Dist. LEXIS 7856 (D.S.C. 1966).

Opinion

WYCHE, District Judge.

The above case is before me upon motion of the defendant “(1) To dismiss the action or in lieu thereof to quash the return of service of Summons on the grounds: (a) That the defendant is a corporation organized under the laws of Ohio and was not and is not subject to service of process within the Eastern District of South Carolina; (b) That the defendant has not been properly served with process in this action, * *

In this case the plaintiff alleges that The Columbia Supply Company of Columbia, South Carolina, a corporation organized and existing under the laws of the State of South Carolina, was distributing and selling, among other things, electrical hoists manufactured by the defendant Yale & Towne, Inc.; that on or about March, 1963, a sales agent of The Columbia Supply Company, negotiated and entered into a sales contract with plaintiff’s company for one 10-ton hoist manufactured by the defendant; that this agent discussed the various characteristics, capacities and attributes of his product with the plaintiff and his employees and furnished the plaintiff’s business [74]*74with various materials and brochures relating to the hoist; the hoist was shipped directly from one of the manufacturing plants in Arkansas to the plaintiff’s machine shop in Florence, South Carolina; that the hoist was installed by the personnel of the plaintiff’s business; that on or about August 10,1963, the plaintiff commenced the operation of the electrical hoist and without any warning the hoist cable slipped out of its anchor causing the I-beams to crash down onto the floor of the gondola ricocheting across the gondola, striking the opposite side and pinning the plaintiff, causing serious and permanent injuries to the plaintiff.

The defendant has submitted affidavits in support of its motion showing that the defendant is an Ohio corporation and owns no property in South Carolina, nor has it been domesticated in the State of South Carolina; that it maintains no office or other representative in South Carolina for the purpose of transacting business therein; that it has a District Sales Manager for hoisting equipment only, and his territory includes North Carolina, Virginia, eastern part of Tennessee and northern part of South Carolina; the balance of South Carolina being handled out of the Birmingham office; that he calls on distributors who handle products of Yale & Towne, Inc., advising them of the type of equipment that Yale & Towne, Inc. manufactures and that is available for re-sale by the distributors; that he supplies the distributors with technical information, bulletins, and brochures; that Yale & Towne, Inc. never sells direct and all sales are made through its distributors ; on occasions, at the request of a distributor, Yale & Towne, Inc. does ship through common carrier direct to the customer; Yale & Towne, Inc. does not deliver through its trucks but always uses common carriers; in case of a complaint by a consumer, Yale & Towne, Inc. has service men who are sent to investigate the complaints; in this case an investigator was sent from Philadelphia, Pennsylvania, to check the complaint of the plaintiff; at the request of the distributor, when it found that the Florence Machine Works was interested in buying a hoist, he called on the Florence Machine Works, together with a representative of the distributor and furnished information as to the equipment manufactured by Yale & Towne, Inc. in response to its requirements; that the actual sale was handled through the distributor; that in his regular course of business, he comes to South Carolina, on the average of once every six to eight weeks, although he is available upon call from any of Yale & Towne’s distributors; that The Columbia Supply Company is a wholesale dealer of industrial supplies furnishing industrial users throughout the State of South Carolina ; that among many other lines The Columbia Supply Company handles products and equipment manufactured and produced by Yale & Towne, Inc.; that when a customer needs a product manufactured or produced by Yale & Towne, Inc., if such product is not on the premises of The Columbia Supply Company, it will order the product and have it sent direct to the customer or to The Columbia Supply Company; if the latter method is used, then the product is reshipped by The Columbia Supply Company to the customer, but in all instances Yale & Towne, Inc. bills The Columbia Supply Company, which in turn bills the customer; The Columbia Supply Company has no connection or affiliation with Yale & Towne, Inc. except that Yale & Towne, Inc. is one of its suppliers; there is no written contractual relationship existing between The Columbia Supply Company and Yale & Towne, Inc.; that all shipments of products of Yale & Towne, Inc. to The Columbia Supply Company are made f. o. b. Yale & Towne, Inc.’s plant at Forrest City, Arkansas.

The plaintiff has submitted affidavits in opposition to the motion of the defendant from which it appears that the plaintiff’s company contracted with The Columbia Supply Company for the purchase of the electric hoist involved in this case; that the agent of The Columbia Supply Company in executing the sale of the elec[75]*75trie hoist used and displayed Yale & Towne, Inc. advertising material and brochures; that when difficulties were experienced in the operation of the electric hoist and agent and representative of Yale & Towne, Inc. inspected and consulted on the operation of the hoist in Florence; that the sale was made in South Carolina; inspection by agents of Yale & Towne, Inc. was made and regularly held themselves out as being available for consultation in South Carolina; that Yale & Towne has various distributors in South Carolina, including The Columbia Supply Company, who promote and sell along with manufacturer representatives of Yale & Towne, direct to businesses in South Carolina; that one such Yale & Towne manufacturer’s representative resides in Charlotte, North Carolina, and regularly calls on distributors in South Carolina; upon information and belief, the said manufacturer’s representative has been an agent and employee of Yale & Towne for more than ten years, that he attends and participates in sales meetings in South Carolina, with distributor representatives, that on occasion the manufacturer’s representative of Yale & Towne makes sales in South Carolina directly to consumers in South Carolina; that the said manufacturer’s representative and other agents and employees inspect and advise on manufactured articles of Yale & Towne and specifically on the hoist involved in this case; that the manufacturer’s representative and his distributors, several in number, regularly distribute Yale & Towne advertising brochures and manuals promoting Yale & Towne products which are contracted for sale in this State, and which are shipped into and used in this State.

Service of the summons and complaint in this case has been made on The Columbia Supply Company of Columbia, South Carolina; on the Secretary of State, and on L. P. Jones, a factory representative of Yale & Towne, Inc., of Charlotte, North Carolina, while he was in South Carolina, on the business of the defendant.

The question involved in this controversy has been fully and ably presented by counsel for both parties by written briefs.

There is no precise test as to the corporate activities which will bring a corporation within the jurisdiction of the court and amenable to its process. Each case is determined according to its own facts.

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326 U.S. 310 (Supreme Court, 1945)

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Bluebook (online)
251 F. Supp. 73, 1966 U.S. Dist. LEXIS 7856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodrique-v-yale-towne-inc-scd-1966.