Smith v. Globe Indemnity Co.

243 So. 2d 882, 1971 La. App. LEXIS 6505
CourtLouisiana Court of Appeal
DecidedFebruary 1, 1971
Docket8167
StatusPublished
Cited by22 cases

This text of 243 So. 2d 882 (Smith v. Globe Indemnity Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Globe Indemnity Co., 243 So. 2d 882, 1971 La. App. LEXIS 6505 (La. Ct. App. 1971).

Opinion

243 So.2d 882 (1971)

Jim D. SMITH
v.
GLOBE INDEMNITY CO.

No. 8167.

Court of Appeal of Louisiana, First Circuit.

February 1, 1971.

*883 W. P. Macmurdo, of Percy, Macmurdo & Gray, Baton Rouge, for appellant.

Joseph A. Gladney, Baton Rouge, for appellee.

Before LANDRY, ELLIS and BLANCHE, JJ.

LANDRY, Judge.

Defendant-appellant, Globe Indemnity Company (Globe), a New York corporation authorized to do business in the State of Louisiana, insurer of plaintiff's employer, Marsh Wrecking Company of Nashville, Tennessee, appeals the judgment of the trial court awarding plaintiff workmen's compensation benefits pursuant to the Tennessee Workmen's Compensation Statute. It is conceded that plaintiff was injured while in Marsh's employ; that the accident occurred in Nashville, Tennessee, on or *884 about November 4, 1966, and that the contract of employment was entered into in the State of Tennessee. Also undisputed is the fact that at the time of institution of suit, plaintiff herein was a bona fide resident of Louisiana. Globe is authorized to do business in this state and was served with process herein through the Secretary of State. We affirm the judgment rendered below.

Appellant urges that the trial court erred as a matter of law in finding that the courts of Louisiana have jurisdiction over the subject matter of this action when both the contract of employment and the disabling accident occurred in Tennessee. Appellant also urges the trial court erred in finding that plaintiff was totally and permanently disabled pursuant to the Tennessee law which defines total permanent disability as incapacity to engage in any occupation which brings the injured employee an income.

The instant suit is not the first in which the courts of this state have been called upon to determine whether the Louisiana courts have, or may assume, jurisdiction over foreign corporations authorized to transact business in this state and having agents for service of process, in causes of actions arising in another state.

In Staley-Wynne Oil Corporation v. Loring Oil Co., 182 La. 1007, 162 So. 756, our own Supreme Court was squarely presented the question whether our courts have jurisdiction over foreign corporations authorized to transact business in this state, and having agents for service of process, in instances where the cause of action arises in another state. In determining that Louisiana courts lacked jurisdiction in such instances, our Supreme Court relied upon the terms of Act 184 of 1924, Section 2, which provides:

"The appointment of the agent or agents or officer upon whom service of process may be made shall be contained in a written power of attorney accompanied by a duly certified copy of the resolution of the Board of Directors of said corporation consenting and agreeing on the part of the said corporation that any lawful process against the same which is served upon the said agent or officer shall be a valid service upon said corporation and that the authority shall continue in force and be maintained as long as any liability remains outstanding against said corporation growing out of or connected with the business done by said corporation in this State." (Italics ours.)

The court, in Staley-Wynne, above, also cited and relied upon Louisville & N. R. R. Co. v. Chatters, and Southern Ry. Co. et al. v. Chatters, 279 U.S. 320, 49 S.Ct. 329, 73 L.Ed. 711, wherein the United States Supreme Court declared:

"A foreign corporation is amenable to suit to enforce a personal liability if it is doing business within the jurisdiction in such manner and to such extent as to warrant the inference that it is present there. Lafayette Insurance Co. v. French, 18 How. 404, 15 L.Ed. 451; Connecticut Mutual Life Ins. Co. v. Spratley, 172 U.S. 602, 19 S.Ct. 308, 43 L.Ed. 569; St. Louis Southwestern Ry. v. Alexander, 227 U.S. 218, 33 S.Ct. 245, 57 L.Ed. 486 (Ann.Cas.1915B, 77). Even when present and amenable to suit it may not, unless it has consented, Pennsylvania Fire Ins. Co. v. Gold Issue Mining Co., 243 U.S. 93, 37 S.Ct. 344, 61 L.Ed. 610; Smolik v. Phila. & Reading Coal Co. (D.C.) 222 F. 148, be sued on transitory causes of action arising elsewhere which are unconnected with any corporate action by it within the jurisdiction Old Wayne Mut. Life Ass'n v. McDonough, 204 U.S. 8, 27 S.Ct. 236, 51 L.Ed. 345; Simon v. Southern Ry. Co., 236 U.S. 115, 35 S.Ct. 255, 59 L.Ed. 492."

It is clear that in Staley-Wynne, above, our Supreme Court denied jurisdiction on the dual ground that our own statute permitted suits against foreign corporations only upon actions arising in this state and that the due process clause of the Fourteenth Amendment to the United States

*885 Constitution was a barrier against assumption of jurisdiction of causes of actions originating in other states.

It appears, however, that the constitutional barrier imposed by Louisville & N. R. R. Co. v. Chatters, above, was removed by the United States Supreme Court in Perkins v. Benguet Consolidated Mining Company, 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (March 3, 1952). In Perkins, above, the United States Supreme Court met the issue squarely and held, that absent a jurisdictional question predicated upon lack of proper notice, the due process clause of the United States Constitution neither prohibits a state from opening its court to an action arising in another state nor compels a state to do so. Perkins, above, concluded that provision for making foreign corporations subject to service in a state is therefore a matter of legislative discretion. In this regard, Perkins, above, notes as follows:

"This conforms to the realistic reasoning in International Shoe Co. v. Washington, supra, 326 U.S. [310] at pages 318-319, 66 S.Ct. at pages 159-160 [90 L.Ed. 95, 103, at 104, 161 A.L.R. 1057]: ` * * * there have been instances in which the continuous corporate operations within a state were thought so substantial and of such a nature as to justify suit against it on causes of action arising from dealings entirely distinct from those activities. See Missouri, K. & T. R. Co. v. Reynolds, 255 U.S. 565, 41 S.Ct. 446, 65 L.Ed. 788; Tauza v. Susquehanna Coal Co., 220 N.Y. 259, 115 N.E. 915; cf. St. Louis S. W. R. Co. v. Alexander, supra (227 U.S. 218, 33 S.Ct. 245, 57 L.Ed. 486) [Ann.Cas. 1915B, 77]."

It is not disputed that present defendant has had substantial continuous contacts with this state pursuant to the conduct of its insurance business here. Neither is adequacy of notice an issue in this instance. Consequently, Perkins, above, precludes any defense of lack of jurisdiction predicated upon denial of due process.

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Bluebook (online)
243 So. 2d 882, 1971 La. App. LEXIS 6505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-globe-indemnity-co-lactapp-1971.