Roehl v. the Texas Co.

291 P. 255, 107 Cal. App. 691, 1930 Cal. App. LEXIS 323
California Court of Appeal·Decided August 16, 1930·No. Docket No. 264.·Published·Cited by 22 cases

Opinion

HAINES, J., pro tem.

The complaint of plaintiff and respondent John F. M. Roehl in the above cause having on July 26, 1928, been filed in the superior court, summons issued thereon and service was one day later attempted on defendant and appellant The Texas Company by delivery in San Diego County of a copy of the same annexed to a copy of the complaint to one C. L. Lorden, stated in the sheriff’s return to be its “district managing agent.” Defendant (now appellant) not having appeared or answered, its default was entered on August 9, 1928, and judgment against it followed on August 11, 1928.

Subsequently, on August 27, 1928, appellant, pursuant to notice of motion regularly given, appearing specially, moved *693 the court to quash the service on the ground that appellant is a corporation incorporated under the laws of California and that, at the date service was attempted, Lorden was not an officer nor president or other head of said corporation, nor a vice-president, secretary, assistant secretary, cashier or managing agent thereof. The court had before it in considering the motion the complaint, summons and return, judgment, appellant’s notice of motion, the affidavit of one George G. Walker in support of the motion and those of plaintiff and respondent Roehl and of Walter C. Church and Cora F. Perrine in opposition thereto. The motion was denied, and from the order of denial the present appeal is prosecuted. The sole question to be decided, therefore, is whether delivery of copies of the summons and complaint to Lorden amounted to a valid service upon the appellant corporation.

The Walker affidavit is to the effect that The Texas Company, at all of the times involved, has been a California corporation, with its principal place of business at Los Angeles, and that he, Walker, is its assistant secretary; and that Lorden “is not a managing agent of said corporation, nor is he an officer of said corporation, and ... is not the president or other head of said corporation, or a vice-president, or a secretary, or an assistant secretary, or a cashier, or managing agent thereof,” that the corporation maintains offices at Los Angeles, “in which offices are its president, three vice-presidents and two assistant secretaries, upon each of whom summons may at all times be served during business hours,” that “the business of the corporation consists of acquiring, holding and owning oil-bearing lands and interests therein, of operating oil wells and producing oil therefrom; of purchasing crude oil from others, of refining said oil and manufacturing various refined products therefrom; of purchasing other refined products; and of selling such products and crude oil at wholesale and at retail.” Each branch of this business is stated to be conducted in California under the supervision and control of the officers of the corporation resident in Los Angeles, each branch “under the supervision, management and control of a separate manager thereof,” and “that the officer and manager having charge and supervision over the branch of said business pertaining to the making of sales of said products, *694 is, and at all times herein mentioned was, C. L. Coppage, the sales manager of said corporation, and also a vice-president thereof.” It is stated that Lorden “is an employee of the said corporation and of the sales department thereof; that his duties as such employee are performed in the County of San Diego; that the said County of San Diego is one of the group of counties in Southern California in which all matters pertaining to sales are under the immediate direction and control of W. M. Owen, district sales manager of said corporation for the Los Angeles district, and A. H. Pearsons, assistant district sales manager for said district,” both, in turn, subject to the “supervision, direction and control of C. L. Coppage, general sales manager of said corporation, and two assistant sales managers of said corporation, whose offices and residences are in the city of Los Angeles, and whose jurisdiction and duties extend over the entire state of California and adjacent states, in so far as matters pertaining to sales are concerned, but none of them have any power or authority as to any other part of said corporation’s business.” ít is further stated that Lorden “has no duties or functions connected with any branch of said company’s business, other than sales of petroleum products; that as such employee he has no general powers or duties involving the exercise of judgment or discretion on his part, but in all such matters acts solely and entirely at the direction and under the control of said district sales manager and assistant district sales manager in said city of Los Angeles; and that in all matters requiring the exercise of such judgment and discretion, said Lorden is required by the rules of said corporation to request instructions and ... to comply with such instructions; that in all important matters the said district sales manager and assistant district sales manager are required to consult with the said sales manager or one of said assistant sales managers before giving such instructions to said Lorden; that in no sense of the word is the said Lorden a managing agent or manager of the said corporation or of any department thereof.”

The counter-affidavit of the plaintiff and respondent Roehl, sworn to on August 20, 1928, states that he has known Lorden for six months prior to that date and frequently had business transactions with him; that The Texas *695 Company had maintained at the foot of Crosby Street at San Diego since May 1, 1928, a place of business, with storage tanks, warehouses and office buildings; since when it has been, and is, there engaged in selling and distributing gasoline, kerosene and lubricating oil throughout the county; that its principal place' of business is in the city of San Diego, “as above stated,” that since May 1, 1928, Lorden “has been the manager of the defendant with reference to its operations in San Diego County, and has been in charge of the office and place of business of said defendant in the city of San Diego during said period of time; that during all of said period of time the said C. L. Lorden has held himself to the public and to the persons dealing with defendant company in the city of San Diego as the manager for' the defendant in San Diego County, ’ ’ and that during said period Lorden “has entered into numerous contracts and agreements with various service station people for the sale and distribution of the products of the defendant in the city and surrounding territory and has arranged for and agreed upon the terms of various contracts for such purpose.” Roehl further states that since June 1, 1928, he has had numerous transactions with The Texas Company in all of which Lorden represented it, claimed to be its manager, and to have authority to act for it, used his own judgment and discretion and of his own volition and without any reference to any officials of the corporation made, modified and agreed upon contracts and terms of the handling and sale of its products.

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Roehl v. the Texas Co., 291 P. 255, 107 Cal. App. 691, 1930 Cal. App. LEXIS 323 (Cal. Ct. App. 1930).

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