State Ex Rel. Farmland Industries, Inc. v. Elliott

560 S.W.2d 60, 1977 Mo. App. LEXIS 2796
CourtMissouri Court of Appeals
DecidedDecember 5, 1977
DocketKCD 29660
StatusPublished
Cited by18 cases

This text of 560 S.W.2d 60 (State Ex Rel. Farmland Industries, Inc. v. Elliott) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Farmland Industries, Inc. v. Elliott, 560 S.W.2d 60, 1977 Mo. App. LEXIS 2796 (Mo. Ct. App. 1977).

Opinion

WASSERSTROM, Judge.

Before the respondent Circuit Judge, plaintiff Farmland Industries, Inc. sued defendant Lyle Farms, Inc. for damages arising from alleged breach of contract and it also sued the defendants Harry M. Jones and Sally V. Jones for damages under their agreement to guarantee performance by Lyle Farms. “Long arm” service was obtained on all three defendants under Section 506.500 RSMo 1969. Defendants filed motions to quash service on the ground that none of them transacted any business in the State of Missouri and none of them had entered into any contract in this State. Defendants also filed a motion to stay proceedings until a certain pending action in the United States District Court of New Jersey could be finally disposed of and determined. After the filing of affidavits and the taking of testimony, respondent sustained defendants’ motion to quash summons and service of process and on his own motion dismissed Farmland’s petition on the grounds of forum non conveniens. Farmland thereupon filed a petition as relator in this court for a writ of mandamus to reinstate the petition and service of process, and a preliminary writ was issued. That preliminary writ is now made peremptory.

*62 The skeletal facts are as follows. Harry M. Jones and his wife Sally V. Jones are both residents of New Jersey. They are the principal stockholders and he is the managing officer of a number of corporations, including Lyle Farms (the corporate defendant involved here) and Lyle Foods, Inc., both of which are New Jersey corporations and neither of which maintains any office in the State of Missouri. Farmland is a Kansas corporation with its principal office and place of business in Kansas City, Missouri.

In 1974, Farmland and one of its subsidiaries entered into a contract with Lyle Foods under which the latter undertook distribution of Farmland’s line of “frozen food entrees.” The two Jones guaranteed performance of that distribution contract by Lyle Foods. Then, about a year later, in 1975, Farmland entered into a new Marketing Agreement with Lyle Farms under which the latter corporation undertook the distribution of Farmland’s line of dry dog food, and the two Jones executed a separate guarantee of that agreement. Both the dog food Marketing Agreement and the guarantee of it bore date of March 6, 1975. There is sharp disagreement between the parties as to whether the last signature to these agreements was affixed in New Jersey or in Missouri.

Disputes later arose between the parties which led to the filing of a lawsuit by Lyle Foods concerning the frozen food entree distribution agreement in the United States District Court for the District of New Jersey on July 30, 1976. Farmland and its subsidiary filed answer and counterclaim over the same distributorship in the New Jersey federal court and then in the following month filed suit on the same subject matter against Lyle Foods and the two Jones in the United States District Court for the Northern District of Illinois. Other facts important to the decision of this case will be stated at later appropriate points in this opinion.

Farmland’s Points Relied On in this court may be summarized thus: (1) Respondent improperly quashed service on Lyle Farms because that defendant both transacted business (Point I) and made a contract (Point II) within Missouri. We hold that Lyle Farms did transact business in Missouri and therefore find it unnecessary to decide Farmland’s Point II. (2) Respondent improperly quashed service on the individual defendants because they transacted business (Point III) and made a contract (Point IV) in Missouri. We hold that the individual defendants transacted business in Missouri and therefore find it unnecessary to decide Farmland’s Point IV. (3) Respondent improperly dismissed the petition on the grounds of forum non conveniens because he had already divested himself of jurisdiction by sustaining defendants’ motion (Point VI) and because the doctrine cannot lawfully be applied to this factual situation (Point VII). We sustain Point VII and therefore find it unnecessary to rule on Farmland’s Point VI. (4) Mandamus is an appropriate remedy with respect to the order to quash service (Point V) and as to the order dismissing the petition on the ground of forum non conveniens (Point VIII). These points can be bypassed for the reason to be stated below.

I.

Transaction of Business in Missouri by Lyle Farms

Defendants challenge all of Farmland’s Points except its Point I. This can be taken as an implied concession by them that the corporate defendant did transact business within Missouri under the provisions of Section 506.500-1(1).

However that may be, Lyle Farms clearly did transact business within the meaning of that statutory provision. Defendant Harry M. Jones testified that the first discussion with respect to him or any enterprise controlled by him undertaking distribution of dog food occurred in Kansas City, Missouri, on about June 24, 1974. On at least seven other occasions thereafter he and sometimes other representatives of Lyle Farms came to Kansas City to further negotiate concerning this projected distrib *63 utorship. These meetings were followed by correspondence, all of which eventuated in the Marketing Agreement dated March 6, 1975, now in suit. Any one of the eight conferences mentioned would alone have sufficed to constitute the transaction of “any” business in Missouri sufficient to sustain long arm service. State ex rel. Peoples Bank v. Stussie, 536 S.W.2d 934 (Mo.App.1976); J. F. Pritchard & Co. v. Dow Chemical of Canada, Ltd., 331 F.Supp. 1215 (D.C.Mo.1971); American Hoechst Corp. v. Bandy Laboratories, Inc., 332 F.Supp. 241 (D.C.Mo.1970). Additionally, some of the work under the contract was done by Farmland in Missouri, and payments were sent by Lyle Farms to Farmland in Kansas City, Missouri. These are further factors to support the conclusion that Lyle Farms transacted sufficient business in Missouri to support service. J. F. Pritchard & Co. v. Dow Chemical of Canada, Ltd., supra.

II.

Transaction of Business in Missouri by the Individual Defendants

The individual defendants seek to distinguish their status from that of the corporate defendant, on the grounds that the individuals were not parties to the Marketing Agreement, but only to the guarantee. They argue that the evidence with respect to negotiations in Missouri relates only to the distribution agreement and that there is no evidence that any negotiations occurred in Missouri with respect to the guarantee.

This attempted distinction is utterly unrealistic. The Marketing Agreement and the guarantee were interrelated aspects of an integrated transaction. The guarantee would never have been executed had the Marketing Agreement not been agreed upon. Therefore, negotiations for the Marketing Agreement necessarily “contributed to the consummation and execution of” the guarantee. J. F. Pritchard & Co. v. Dow Chemical of Canada, Ltd., supra at page 1219.

Defendant Sally V.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Peabody Holding Co., Inc. v. Costain Group PLC
808 F. Supp. 1425 (E.D. Missouri, 1992)
Hantover, Inc. v. Omet, S.N.C. of Volentieri & C.
688 F. Supp. 1377 (W.D. Missouri, 1988)
Watlow Electric Manufacturing Co. v. Sam Dick Industries, Inc.
734 S.W.2d 295 (Missouri Court of Appeals, 1987)
Walker v. Invention Marketing, Inc.
647 F. Supp. 24 (W.D. Missouri, 1986)
Health Related Services, Inc. v. Golden Plains Convalescent Center, Inc.
705 S.W.2d 499 (Missouri Court of Appeals, 1985)
Greycas, Inc. v. Anderson
584 F. Supp. 894 (E.D. Missouri, 1984)
Osage Homestead, Inc. v. Sutphin
657 S.W.2d 346 (Missouri Court of Appeals, 1983)
Charles Schmitt & Co. v. Thomas E. Barrett, III
670 F.2d 802 (Eighth Circuit, 1982)
State Ex Rel. Newport v. Wiesman
627 S.W.2d 874 (Supreme Court of Missouri, 1982)
Ingle v. Illinois Central Gulf Railroad
608 S.W.2d 76 (Missouri Court of Appeals, 1980)
Wooldridge v. Beech Aircraft Corp.
479 F. Supp. 1041 (W.D. Missouri, 1979)
Shady Valley Park & Pool, Inc. v. Dimmic
576 S.W.2d 579 (Missouri Court of Appeals, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
560 S.W.2d 60, 1977 Mo. App. LEXIS 2796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-farmland-industries-inc-v-elliott-moctapp-1977.