Springle v. Cottrell Engineering Corp.

391 A.2d 456, 40 Md. App. 267, 1978 Md. App. LEXIS 300
CourtCourt of Special Appeals of Maryland
DecidedSeptember 6, 1978
Docket1270, September Term, 1977
StatusPublished
Cited by14 cases

This text of 391 A.2d 456 (Springle v. Cottrell Engineering Corp.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Springle v. Cottrell Engineering Corp., 391 A.2d 456, 40 Md. App. 267, 1978 Md. App. LEXIS 300 (Md. Ct. App. 1978).

Opinion

Wilner, J.,

delivered the opinion of the Court.

We have before us cross-appeals from a judgment entered by the Circuit Court for Anne Arundel County on an action by Gene Springle. Mr. Springle was a seaman who claims to have been injured while serving aboard the dredge “Richmond”, and he sued the owner of the dredge (Cottrell Engineering Corporation) because of its failure to provide him with maintenance and cure. 1 The threshold question arises from appellee’s cross-appeal; that is, whether the court had jurisdiction to entertain this action in the first place (or, more precisely, whether the court erred in denying its motion raising preliminary objection filed under Maryland Rule 323, alleging a want of jurisdiction over appellee).

After pointing out that appellant is a resident of North Carolina, that appellee is incorporated in Delaware and has its principal office in Virginia, and that the incident giving rise to the claim for maintenance and cure occurred in North Carolina, appellee asserts that “[i]n order for a Maryland Court to have jurisdiction over a foreign corporation, one of the requirements set forth in § 6-103 of the Courts and Judicial Proceedings Article (the Long Arm Statute) must be complied with.” Building upon that foundation, appellee attempts to show how it does not meet any of the six requirements for in personam jurisdiction under that statute. More precisely, appellee’s claim appears to be that this cause of action did not arise from any of the types of contacts with Maryland enumerated in § 6-103, and for that reason, jurisdiction does not exist in this case.

The question of jurisdiction may not be decided solely on the basis of § 6-103, however. Drawn into play as well are *269 Courts article § 6-102 (a), Corporations and Associations article § 7-210, and the overlay of due process which, ultimately, circumscribes the reach of the in personam jurisdiction of a Maryland court over a foreign corporation.

' To trace through the interplay of these statutes and concepts, we first must identify what they are.

The “bases of personal jurisdiction” of Maryland courts are set forth in Courts article, §§ 6-101 through 6-104. Section 6-101 consists of definitions. Section 6-102 provides:

“(a) A court may exercise personal jurisdiction as to any cause of action over a person domiciled in, served with process in, organized under the laws of, or who maintains his place of business in the state.
(b) This section does not limit any other basis of personal jurisdiction of a court of the state.” (Emphasis supplied.)

Section 6-103, which is generally referred tó as “long-arm” statute, provides:

“(a) If jurisdiction over a person is based solely upon this section, he may be sued only on a cause of action arising from any act enumerated in this section.
(b) A court may exercise personal jurisdiction over a person, who directly or by an agent:
(1) Transacts any business or performs any character of work or service in the state;
(2) Contracts to supply goods, food, services, or manufactured products in the state;
(3) Causes tortious injury in the state by an act or omission in the state;
(4) Causes tortious injury in the state or outside of the state by an act or omission outside the state if he regularly does or solicits business, engages in any other persistent course of conduct in the state or derives substantial revenue from goods, food, *270 services, or manufactured products used or consumed in the state;
(5) Has an interest in, uses, or possesses real property in the state; or
(6) Contracts to insure or act as surety for, or on, any person, property, risk, contract, obligation, or agreement located, executed, or to be performed within the state at the time the contract is made, unless the parties otherwise provide in writing.”

Section 6-104 codifies the doctrine of forum non conveniens. It provides:

“If a court finds that in the interest of substantial justice an action should be heard in another forum, the court may stay or dismiss the action in whole or in part on any conditions it considers just.”

The record here shows that appellee qualified to do business in Maryland in 1964; that, pursuant to State law it appointed and has maintained a resident agent authorized to accept service of process on its behalf; and that service of process in this case was, in fact, duly made in Maryland upon that resident agent so appointed. In that circumstance, § 6-102 (a) would appear to provide an independent basis for jurisdiction over appellee, a basis apart from those set forth in § 6-103 and founded solely upon appellee’s being served with process in Maryland. Two questions arise, however, as to whether § 6-102 (a) may be applied in quite so straightforward a manner. The first is whether, and to what extent, Corporations and Associations article, § 7-210, detracts from this basis of jurisdiction, and the second is whether, and to what extent, jurisdiction may constitutionally attach to a foreign corporation simply by virtue of its being served with process in Maryland. These two questions are very much interrelated.

Section 7-210, which is part of the subtitle dealing with the registration and qualification of foreign corporations, provides:

“With respect to any cause of action on which a *271 foreign corporation would not otherwise be subject to suit in this State, compliance with this subtitle:
(1) Does not of itself render a foreign corporation subject to suit in this State; and
(2) Is not considered as consent by it to be sued in this State.” (Emphasis supplied.)

There is an historical relationship between these three statutes (§§ 6-102 and 6-103, Courts article, and § 7-210, Corporations article) which emanates from the due process requirements laid down, from time to time, by the Supreme Court.

In Pennoyer v. Neff, 95 U. S. 714 (1878), the Court held, in effect, that, in order for a State court to determine the personal liability of a defendant, and to render a valid in personam judgment against him, “he must be brought within its jurisdiction by service of process within the State, or his voluntary appearance.” 95 U. S. at 733. The Court did permit somewhat of an end run around this principle when it stated, at page 735:

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Bluebook (online)
391 A.2d 456, 40 Md. App. 267, 1978 Md. App. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/springle-v-cottrell-engineering-corp-mdctspecapp-1978.