Starkey v. Cleveland, Cincinnati, Chicago & St. Louis Railway Co.

130 N.W. 540, 114 Minn. 27, 1911 Minn. LEXIS 1029
CourtSupreme Court of Minnesota
DecidedFebruary 24, 1911
DocketNos. 16,812 — (205)
StatusPublished
Cited by5 cases

This text of 130 N.W. 540 (Starkey v. Cleveland, Cincinnati, Chicago & St. Louis Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starkey v. Cleveland, Cincinnati, Chicago & St. Louis Railway Co., 130 N.W. 540, 114 Minn. 27, 1911 Minn. LEXIS 1029 (Mich. 1911).

Opinion

Simpson, J.

This is a garnishment proceeding, and comes here on an appeal from an order refusing to discharge the garnishees herein. The action in which the garnishment process is issued is brought by the plaintiff, a resident of Minnesota, against the three defendant railway companies to recover damages for negligent handling of a shipment of fruit from a point in Michigan to the city of Duluth, over the lines of such railway companies. The initial carrier, receiving the shipment in Michigan, was the Cleveland, Cincinnati, Chicago & St. Louis Railway Company, and the delivering carrier at Duluth was the Chicago, St. Paul, Minneapolis & Omaha Railway Company. The garnishee, the Duluth & South Shore Railway Company, is a foreign corporation doing business in this state and subject to service of process herein. The garnishee and defendant, the Chicago, St. Paul, Minneapolis & Omaha Railway Company, is a foreign corporation, but it owns and operates an extensive system of railway within this state, and is subject to personal service of process within this state, and was personally served as defendant in said action. The defendants the Cleveland, Cincinnati, Chicago & St. Louis Railway Company and the Michigan Central Railroad Company are foreign corporations, not doing business in this state, and not subject to personal service here.

The plaintiff, by garnishment, attached funds in the hands of the said garnishees belonging to the defendants the Cleveland, Cincinnati, Chicago & St. Louis Railway Company and the Michigan Central Railroad Company and served the summons in the action upon said defendants by publication. The funds so attempted to be impounded by garnishment consist of traffic balances arising mainly out of interstate shipments. The appellants urge that upon this state of-facts-the garnishees should have been discharged on their several motions, on the grounds: First, because of the residénce outside of the state of the defendants and garnishees, the fund sought to be reached by garnishment is not within the jurisdiction of the courts of this state; [29]*29and, second, that the impounding or condemnation of the funds arising out of traffic balances in interstate commerce would be an interference with such commerce.

1. The essential condition in determining that, in an action brought in this state, a debt owing to a nonresident defendant may be reached by garnishment, is that the debtor be within this state subject to the process of our courts. A debt is something that may be seized in an action against the creditor. It is seized by service of process on the debtor. Wherever the debtor is found is an appropriate place for impounding the fund of the obligation. When jurisdiction depends upon the attachment of the fund, it must be acquired at a place where the debtor is subject to process, and it would seem to follow that, in cases in which jurisdiction through attachment can be acquired, it may be so acquired wherever the •debtor is found, subject to such limitations as may be deemed necessary to prevent an unfair use of the process of the courts.

In Harvey v. Great Northern Ry. Co., 50 Minn. 405, 52 N. W. 905, 17 L.R.A. 84, Justice Mitchell, speaking of the right to attach a debt in a suit against a nonresident defendant, stated: “For such purpose a debt has a situs wherever the debtor can be found. Wherever the creditor might maintain a suit to recover the debt, there it may be attached as his property, provided, of course, the laws of the forum authorize it.” This rule made the jurisdiction over the debtor the sole test of the situs of the debt in attachment proceedings and the sole consideration in determining whether the courts of this state would assume jurisdiction in an action against a nonresident defendant through garnishment and service by publication.

Swedish-American Nat. Bank v. Bleecker, 72 Minn. 383, 75 N. W. 740, 42 L.R.A. 283, 71 Am. St. 492, was an action brought by a plaintiff resident of this state against a defendant resident of North Dakota, .in which a debt, due from a foreign insurance company to the defendant by reason of a fire loss occurring at the defendant’s place of residence, was sought to be reached by garnishment. The summons was served on the defendant by publication. The garnishee had, pursuant to the laws of this state, stipulated that service might be made upon it by service on the insurance commissioner, [30]*30and the garnishment process was so served. The court held: “This did not, in our opinion, give the garnishee a domicile in this state for all purposes, or bring into this state the situs of debts which it owes elsewhere by reason of business transacted elsewhere. Neither the creditor nor the debtor resided in this state, none of the transactions out of ivhich the indebtedness arose took place in this state, and the indebtedness was not payable in this state. Under these circumstances, the debt has not a situs in this state.”

This decision Avas a departure from the broad rule laid doAvn in the Harvey case. It is apparent from the statement of the facts in the case, as well as from what is said in distinguishing it from the Harvey case, that the court considered the place where the transaction occurred out of which the debt arose an important element in determining the place where the debt was subject to attachment by service on the debtor.

In McKinney v. Mills, 80 Minn. 478, 83 N. W. 452, 81 Am. St. 278, a garnishment proceeding in which the plaintiff, the defendant, and the garnishee were each domiciled in the state of North Dakota, personal service being obtained upon the garnishee while temporarily in this state upon business, Justice Collins stated: “The doctrine in the Harvey case is too broad. . . . It is the plain duty of this court to modify the sweeping assertion therein contained; and we do so by holding that Avhen all the parties to an action brought in this state — the plaintiff, the defendant, and the garnishee — are nonresidents, none of them being in the state except the garnishee, Avho is served Avith summons while he is within our borders temporarily upon business, the garnishment process must be discharged, Avhenever the facts are brought to the attention of the court.”

In Northwestern Life & Savings Co. v. Gippe, 92 Minn. 36, 99 N. W. 364, it was stated that the facts brought the case within the above decision in McKinney v. Mills. While this statement is not accurate because the garnishee, a Wisconsin corporation, was permanently doing business in the state of Minnesota, and subject to the service of process therein, the decision does not purport to place any other limitation on the rule announced in the Harvey case than is placed thereon by authority of McKinney v. Mills.

[31]*31In Krafve v. Roy & Roy, 98 Minn. 141, 107 N. W. 966, 116 Am. St. 346, an action in which the plaintiff was a resident of this state, the defendant, a Washington corporation doing business in that state, and the garnishee, a foreign corporation maintaining an agency in the state of Minnesota for the transaction of business therein, the debt sought to be reached in the garnishment proceeding arose out of a transaction in the state of Minnesota and was payable in this state, Justice Brown stated: “It was held in Harvey v. Great Northern Ry. Co., 50 Minn. 405 [52 N. W. 905, 17 L.R.A. 84], that for purposes of attachment a debt has a situs wherever the debtor can be found. Wherever the creditor might sue for its recovery, there it may be attached as his property. The place of payment is immaterial.

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Cite This Page — Counsel Stack

Bluebook (online)
130 N.W. 540, 114 Minn. 27, 1911 Minn. LEXIS 1029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starkey-v-cleveland-cincinnati-chicago-st-louis-railway-co-minn-1911.