Schweppes USA Limited v. Kiger

214 S.E.2d 867, 158 W. Va. 794, 1975 W. Va. LEXIS 229
CourtWest Virginia Supreme Court
DecidedMay 20, 1975
Docket13555
StatusPublished
Cited by17 cases

This text of 214 S.E.2d 867 (Schweppes USA Limited v. Kiger) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schweppes USA Limited v. Kiger, 214 S.E.2d 867, 158 W. Va. 794, 1975 W. Va. LEXIS 229 (W. Va. 1975).

Opinion

Caplan, Justice:

In this original proceeding in prohibition the petitioner, Schweppes U.S.A. Limited, a corporation, seeks to prohibit the respondents, Marvin R. Kiger, Judge of the Circuit Court of Monongalia County; Jean Friend, Clerk of the Circuit Court of said county; Charles J. Whiston, Sheriff of said county; and, Glenna Cather and Carl Cather, her husband, from further proceeding in an action institued in the above court, designated Glenna Cather and Carl Cather v. Schweppes U.S.A. Limited, or from any attempt to enforce the alleged void judgment rendered therein. This Court on January 27, 1975 awarded a rule returnable February 11, 1975. Subsequently, the case was continued to April 22, 1975 for the taking of depositions upon which date, upon the briefs and oral arguments of counsel for the respective parties, the case was submitted for decision.

Giving rise to this proceeding is the factual situation revealed by the record and now described. Respondents Glenna and Carl Cather, residents of Morgantown, West *796 Virginia, while driving from said city to the eastern seashore for a holiday stopped in Easton, Maryland where they stayed overnight. While there they purchased from a retail store four quarts of Schweppes tonic water. The following morning, May 25, 1974, they proceeded by automobile and boat to Hog Island, Virginia, their destination, taking with them the said bottles of tonic water. The Cathers were in the company of two other couples from Morgantown.

Upon their arrival at Hog Island, Glenna Cather was unpacking their personal effects during which time she had occasion to handle one of the bottles of tonic water. As she placed it on the floor the metal cap on the bottle blew off with great force. The cap struck Mrs. Cather in the right eye causing severe and perhaps irreparable damage. She was hospitalized and continues to suffer serious consequences from that unfortunate accident. While we in no manner minimize the extent of her injuries, further consideration of her condition resulting therefrom is not pertinent to this proceeding.

Subsequently, on the 7th day of August, 1974 Glenna and Carl Cather instituted an action against Schweppes U.S.A. Limited in the Circuit Court of Monongalia County, West Virginia, charging Schweppes, the petitioner herein, with a breach of implied warranty and negligence and seeking damages in the sum of $750,000.00 for the injury to Mrs. Cather’s right eye. For the purpose of obtaining service on Schweppes the plaintiffs served process on the Auditor of the State of West Virginia, ostensibly under the provisions of Code, 1931, 31-1-71, as amended. Schweppes, for reasons disputed in this record, did not answer or otherwise defend against the complaint of the Cathers. By reason thereof the plaintiffs in that action filed a motion for a default judgment under the provisions of 55(b)(2), West Virginia Rules of Civil Procedure. Their motion for such judgment was granted.

Thereafter, on September 13, 1974 the plaintiffs requested and were granted a hearing on the question of *797 damages. This hearing was held before the court, a jury having been expressly waived. At the hearing there was adduced the testimony of the plaintiffs, two medical witnesses and a professor of business administration from West Virginia University who testified as an actuarial expert. At the conclusion of the hearing, judgment was entered against Schweppes in the amount of $270,000.00 in favor of Glenna Cather and $30,000.00 for the plaintiffs husband, Carl Cather.

The sole issue in this proceeding is whether the Circuit Court of Monongalia County had jurisdiction of Schweppes U.S.A. Limited so as to render an in perso-nam judgment against it for the above-described injuries of Glenna Cather. Did the Circuit Court of Mononga-lia County acquire jurisdiction over Schweppes by virtue of service upon and acceptance of service by the Auditor of the State of West Virginia of process issued in that action wherein the defendant was considered a corporation not authorized to do business in the State of West Virginia under the provisions of Code, 1931, 31-1-71, as amended?

It is a fundamental principle of law that a court, to render a valid judgment or decree, must have jurisdiction both of the parties and of the subject matter and that any judgment or decree rendered without such jurisdiction will be utterly void. State ex rel. Smith v. Bosworth, 145 W. Va. 753, 117 S.E. 2d 610 (1960); Chapman v. Maitland, 22 W. Va. 329 (1883); 11 M.J. Jurisdiction § 8 et seq.

The respondents take the position that if the petitioner, a foreign corporation, was doing business in this state service was effected upon it under the provisions of Code, 1931, 31-1-71, as amended, sometimes referred to as our long-arm statute. They contend that the above statute was an attempt by the legislature to enable injured West Virginia residents to sue a foreign corporation in the courts of our state rather than having to proceed against such corporation in its home state. We agree that the legislature in its endeavor to lessen the *798 burden of a resident injured in this state by an act of a foreign corporation provided a method of obtaining personal service on such corporation, making it amenable to the jurisdiction of our courts so that in an action instituted against it an in personam judgment could be rendered. However, jurisdiction of such foreign corporation can be obtained only as prescribed by the above statute.

Code, 1931, 31-1-71, as amended, constitutes the state auditor as attorney in fact for the acceptance of service of process for all domestic corporations and for all foreign corporations authorized to do business in this state. A further function of said statute is to provide a method to service process on foreign corporations which do business in this state without having been authorized so to do pursuant to Code, 1931, 31-1-79, as amended.

Where pertinent, Code, 1931, 31-1-71, as amended, reads as follows:

Any foreign corporation which shall do any business in this State without having been authorized so to do pursuant to the provisions of section seventy-nine [§31-1-79] of this article shall be conclusively presumed to have appointed the auditor of the State as its attorney in fact with authority to accept service of notice and process may be made in this State for and upon every such corporation in any action or proceeding described in the next following paragraph of this section. * * *

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Bluebook (online)
214 S.E.2d 867, 158 W. Va. 794, 1975 W. Va. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schweppes-usa-limited-v-kiger-wva-1975.