Security Trust & Safe Deposit Co. v. Walls

183 A. 513, 37 Del. 362, 7 W.W. Harr. 362, 1936 Del. LEXIS 25
CourtSuperior Court of Delaware
DecidedJanuary 17, 1936
DocketJudgment 540; 91, Att. fi. fa.
StatusPublished

This text of 183 A. 513 (Security Trust & Safe Deposit Co. v. Walls) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security Trust & Safe Deposit Co. v. Walls, 183 A. 513, 37 Del. 362, 7 W.W. Harr. 362, 1936 Del. LEXIS 25 (Del. Ct. App. 1936).

Opinion

*364 Rodney, J.,

delivering the opinion of the Court:

The difficulties of the present case, more apparent than real, seem best solved by the chronological discussion of the attachment laws considered in connection with the statutory provisions concerning the domestication of foreign insurance companies.

In 1837 it had been determined by Holland v. Leslie, 2 Harr. 306, that a corporation, in the absence of statute, was not subject to the attachment laws and could not be summoned as garnishee. So the law remained until 1871. By Chapter 90, Vol. 14, Laws Delaware, p. 100, certain corporations (the exceptions not being here material) were made subject to the attachment laws. The statute, however, only applied to corporations of the State of Delaware, and under this statute service of attachments were required to be made on the President, Treasurer, Cashier or Paying Clerk.

In 1879, by Section 5, c. 22, Vol. 16, Laws Delaware, p. 29, amended by Act of 1881 (Section 7 of Chapter 347, Volume 16, Laws of Delaware, p. 359), foreign corporations transacting any insurance business in Delaware were required, inter alla, to file a certificate giving the name and residence of “a person or agent” upon whom service of process could be made.

In 1889, by Chapter 681, Vol. 18, Laws Delaware, p. 947, the Attachment Law (Chapter 90, Vol. 14, supra) was amended by striking out its restriction to Delaware corporations and making it applicable to all corporations doing business in Delaware.

The foregoing was the statutory status at the time of the decision of National Bank of Wilmington & Brandywine v. Furtick, 2 Marv. 35, 42 A. 479, 44 L. R. A. 115, 69 *365 Am. St. Rep. 99, which is so strongly relied upon by the defendants herein. In that case a foreign attachment was issued against Furtick and a foreign insurance corporation was summoned as garnishee by leaving the process with Ferdinand L. Gilpin, “agent” of that corporation. This was the designated officer for the service of process under the foreign insurance company statute but was not one of the officers mentioned in the Attachment Law. In- the cited case the Court held that the foreign insurance company law provided for an officer to receive the service of such process as was provided by law at the time of its enactment (1879) but that at that time foreign corporations were not subject to attachment, not being so subject until 1889. The Court therefore held that the service of. process on the “agent” mentioned in the Insurance Company Law was not a proper service under the attachment statute. This case would be binding on us if the statutory situation had remained the same, but many changes have occurred during the intervening years.

In 1901, by Section 7 of Chapter 99, Volume 22, Laws of Delaware, the pertinent provisions of the foreign insurance companies’ Acts of 1879 and 1881 were re-enacted, namely, that the insurance company should certify to the Insurance Commissioner the name and residence “of some person or agent within this State upon whom service of process may be made.” This provision may be found as Section 578 of the Revised Code of 1915, being a portion of Chapter 20 of such Code.

In 1905, by Chapter 71, § 1, Vol. 23, Laws Delaware, page 112, it was enacted that no foreign insurance company should transact business in Delaware “until it shall have first appointed in writing the Insurance Commissioner of this State to be its attorney in this State, upon whom all *366 lawful process, in any action or proceeding against it, may be served with the same effect as if the Company * * * existed in this State. Said power of attorney shall stipulate and agree on the part of the Company * * * that any lawful process against the same * * * shall be of the same legal force and validity as if served on the company.”

This provision may be found as Section 606 of the Revised Code of 1915, being a portion of Chapter 20 of such Code.

In chronological order there now came an amendment to the Attachment Law. In 1919, by Chapter 226, Vol. 30, Laws Delaware, p. 608, the former law (found as Section 4120 of the Revised Code of 1915) was repealed and reenacted with some change as to the officers upon whom service of attachment process might be had. In addition to the “president, treasurer, cashier, or paying clerk,” as theretofore provided for the service of attachment process, there was added “any Director or the registered agent.” It will thus be seen that by force of the two amendments of 1889 and 1919 to the original Attachment Law, all foreign corporations were made subject to be attached by the serving of process on the “registered agent” in addition to the other stipulated officers.

In 1931 all existing insurance laws were codified and consolidated by Chapter 52, Vol. 37, Laws Delaware, the title of which is, as follows:

“An Act to amend, revise and consolidate the Laws regulating the business of Insurance in this State, and for this purpose to repeal certain existing Laws relating to the business of Insurance, and to substitute for the same the revision and consolidation set forth in this Act, such revision and consolidation to become and be Chapter 20 of Title Six of the Revised, Code of the State of Delaware of 1915.”

This act is an express repealer of insurance legislation, *367 including the Acts of- 1901 and 1905 (above mentioned), which had become, respectively, Sections 578 and 606 of Revised Code of 1915, both being found in Chapter 20 of said Code.

The Act of 1931, by “579. Sec. 8 (e),” page 176, substantially re-enacted the provisions of the 1905 Act providing for the appointment of the Insurance Commissioner as attorney for foreign insurance corporations and providing for the service of process on this attorney with the same legal force and validity as if served on the company.

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Cite This Page — Counsel Stack

Bluebook (online)
183 A. 513, 37 Del. 362, 7 W.W. Harr. 362, 1936 Del. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-trust-safe-deposit-co-v-walls-delsuperct-1936.