Smith v. Forty Million, Inc.

395 P.2d 201, 64 Wash. 2d 912, 1964 Wash. LEXIS 430
CourtWashington Supreme Court
DecidedSeptember 10, 1964
Docket37049
StatusPublished
Cited by20 cases

This text of 395 P.2d 201 (Smith v. Forty Million, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Forty Million, Inc., 395 P.2d 201, 64 Wash. 2d 912, 1964 Wash. LEXIS 430 (Wash. 1964).

Opinion

*913 Hill, J.

Quaere: In an action for damages arising out of an automobile collision on a highway in this state is the statute of limitations tolled by the absence from the state of a nonresident defendant, as provided in RCW 4.16.180, 1 when the plaintiff has available to him at all times the right to proceed under RCW 46.64.040, 2 which makes the Secretary of State the agent of such nonresident for the purpose of service of summons?

*914 Answer: No.

Reason for the Answer: The great majority of the courts which have considered this question have arrived at this answer. The reason usually given for the majority view is well stated by a Delaware Superior Court, 3 which said:

“ . . . However, the statute tolling the period of limitations as to those outside the State must be deemed to be limited by its clear and specific purpose so as to apply only to those who are outside the State and who are not otherwise subject to service of process in the State. The fictional presence of a defendant by an agent, imposed by law upon the defendant, brings the defendant within the State for purposes of service of process and the same fiction causes the period of limitations to run.”

This holding was affirmed by the Delaware Supreme Court in Hurwitch v. Adams (1959), 52 Del. 247, 155 A. (2d) 591. The Nevada Supreme Court used the same quotation in its opinion in Cal-Farm Ins. Co. v. Oliver (1962), 78 Nev. 479, 375 P. (2d) 857.

The Supreme Court of Oregon in Whittington v. Davis (1960), 221 Ore. 209, 212, 350 P. (2d) 913, makes a somewhat similar statement and also disposes of the argument which seemed to be persuasive to the trial court in the present case relative to the implied amendment or repeal of the tolling statute:

“ORS 12.150 provides that the statutes of limitation are tolled when the defendant is a nonresident or secreted within the state. Plaintiff contends that if we adopt the view that the availability of a statutory agent for service upon a motorist avoids the tolling of the limitation statute we will impliedly amend ORS 12.150. Plaintiff says we would thereby amend the tolling statute to add a limitation, not otherwise expressed, that it does not apply when a motorist is a defendant. Some of the cases relied on by plaintiff, previously cited, do so hold. We cannot agree with this theory. The effect of our holding is merely to say that a motorist using the highways of Oregon, within ORS 15.190, makes himself available for the service of summons upon him by the designation of a lawful agent for that purpose. *915 The availability of the right to compel the attendance of the defendant or to obtain and enforce a valid judgment against him is all that a plaintiff is entitled to. When such a right is present there is no cause to apply the tolling statute at all.

“There is also a matter of policy involved in this case. If we would accede to plaintiff’s argument it would mean that a plaintiff could indefinitely postpone the filing of an action against a nonresident motorist. He could await a propitious time when witnesses or parties were unavailable and thereby effectively deprive a defendant of any defense the defendant may have. The plaintiff’s theory could well lead to the equivalent of fraud.”

Concededly, there is a division of authority on this question. See 94 A.L.R. 485, 119 A.L.R. 859, 17 A.L.R. (2d) 502, and the A.L.R. supplements thereto.

We prefer the reasoning of those cases adhering to the majority rule, and holding that where a plaintiff has a statutory right to serve summons on the Secretary of State, as the statutory agent of the defendant, the fact that the defendant is physically absent from the state does not toll the statute of limitations.

The plaintiff makes the further contention that RCW 4.16.180 (the tolling statute) operates to toll the statute of limitations unless all elements of service of process are accomplished within the state of Washington. He points out that the proviso in RCW 46.64.040 which requires that after service on the Secretary of State, notice of that service and a copy of the summons or process be sent by registered mail to the defendant with personal delivery required; and that the defendant’s return receipt, or an endorsement by the proper postal authority showing that delivery was refused, must be made a part of the record. He urges that this requirement of notice to the defendant cannot be accomplished in the state of Washington and that, therefore, nonresidence should continue to toll the statute' of limitations.

The answer to this contention is that the plaintiff confuses service, which is upon the plaintiff’s agent — the Sec *916 retary of State — with the necessity of notice of that service, actual or constructive, to the defendant.

Some provision for notice to the defendant, in addition to the service on the Secretary of State or other state official, in statutes such as RCW 46.64.040 is essential to due process. Wuchter v. Pizzutti (1928), 276 U. S. 13, 72 L. Ed. 446, 48 S. Ct. 259, 57 A.L.R. 1230; Hess v. Pawloski (1927), 274 U. S. 352, 71 L. Ed. 1091, 47 S. Ct. 632.

In the Wuchter case, a New Jersey statute, which had no provision for notice to the nonresident motorist after service of summons on the Secretary of State, was held to be lacking in due process. In the Hess case, a Massachusetts statute, which had a provision for notice to the nonresident motorist very similar to our own after a service of process on the Registrar of Motor Vehicles, was held to provide due process. These cases emphasize that process must be served on a nonresident defendant, or his agent for the acceptance of service within a state, to give the courts jurisdiction; and where the service is on a statutory agent, there must be some provision for notice to the nonresident defendant to constitute due process.

As was said in Bond v. Golden (C. A. 10th 1959), 273 F.

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Cite This Page — Counsel Stack

Bluebook (online)
395 P.2d 201, 64 Wash. 2d 912, 1964 Wash. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-forty-million-inc-wash-1964.