State Ex Rel. Northwestern Mutual Fire Ass'n v. Cook

160 S.W.2d 687, 349 Mo. 225, 1942 Mo. LEXIS 351
CourtSupreme Court of Missouri
DecidedMarch 10, 1942
StatusPublished
Cited by13 cases

This text of 160 S.W.2d 687 (State Ex Rel. Northwestern Mutual Fire Ass'n v. Cook) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Northwestern Mutual Fire Ass'n v. Cook, 160 S.W.2d 687, 349 Mo. 225, 1942 Mo. LEXIS 351 (Mo. 1942).

Opinion

*227 TIPTON, J.

Prohibition to Honorable John F. Cook, Judge of the Circuit Court of Jackson County, Missouri, at Kansas City, Division No. 2, to prevent him from exercising jurisdiction over the person of the relator in the case of Forest Lumber Company v. Northwestern Mutual Fire Association.

The plaintiff in that case is a corporation organized under the laws of the State of Delaware, and the defendant, or relator, is a mutual insurance company organized under the laws of the State of Washington. The action was based upon a fire insurance policy issued by relator to plaintiff, and plaintiff’s petition alleges that plaintiff and defendant are licensed to do business in the States of Missouri and Oregon, and that plaintiff’s main office is in Jackson County, Missouri; that the fire insurance policies sued on were executed and delivered in the State of Oregon and are Oregon contracts; that the property insured against damage or loss by fire was located in the State of Oregon and that the loss claimed occurred in the State of Oregon.

Summons was issued to the sheriff of Cole County, Missouri, and return was made that he had served same upon the Superintendent of the Insurance Department of the State of Missouri. At the return term, relator appeared specially and moved to quash the summons and return on the ground that, on the face of the petition, it appeared the action was not one authorized by Section 6005, R. S. (Mo.) 1939, and therefore the purported summons and return were *228 invalid and conferred no jurisdiction over the person of the relator. The case was duly assigned to the respondent, who overruled the motion to quash.

On September 25, 1941, this court issued its preliminary rule in prohibition and respondent’s return admitted all factual allegations of relator’s petition, but contended that plaintiff below, though a Delaware corporation, is a resident of Missouri, within the meaning of Section 6005, R. S. (Mo.) 1939; that the suit is therefore within such section and that jurisdiction of the person of relator was acquired by service of the Superintendent of Insurance and that he was not exceeding his jurisdiction in proceeding with the case. To this return, relator filed its motion for a judgment on the pleadings.

The sole question for our determination is, is a foreign corporation, licensed to do business in Missouri, a resident of this State within the meaning of that word as it is used in Section 6005, R. S. (Mo.) 1939? In other words, is a foreign corporation that has complied with Sections 5072, 5073, and 5074, R. S. (Mo.) 1939, a resident of this State as that word is used in Section 6005, supra?

That section provides that a foreign insurance corporation may be served by a delivery of a copy of the petition and summons to the Superintendent of Insurance at his office in Jefferson City, Missouri, “and service as aforesaid shall be valid and binding in all actions brought by residents of this state upon any policy issued or matured, or upon any liability accrued in this state, or on any policy issued in any other state in which such resident is named as beneficiary, and in all actions brought by nonresidents of this state upon any policy issued in this state in which such nonresident is named beneficiary or which has been assigned to such nonresident and in all actions brought by nonresidents of this state on a cause of action, other than an action on a policy of insurance, which arises out of business transacted, acts done, or contracts made in this state. ’ ’ (Italics ours.)

Since the policy of insurance sued on was executed in the State of Oregon, it is an Oregon contract. The alleged loss occurred in the State of Oregon. Therefore, to come within the provision of the above quoted part of Section 6005, the plaintiff must be a resident of the State of Missouri.

The relator contends that since the plaintiff is a Delaware corporation, it can only be a resident of that state, and cannot be a resident of this State. It cites Fletcher Cyclopedia on Corporations, Volume 8, Chapter 48, Section 4025, and Volume 17, Chapter 67, Section 8300; 1 Thompson on Corporations (3 Ed.), page 795; certain federal decisions and decisions from other states which hold that legal existence, the home, the domicile, the habitat, the residence, the citizenship of the corporation can only be in the state by which it was created, notwithstanding it may lawfully do business in other states. *229 [Germania Fire Insurance Company v. Francis, 78 U. S. 210; Dryden v. Ranger Refining & Pipe Line Company, 280 Fed. 257; In re Hudson River Navigation Corporation, 59 Fed. (2d) 971; Blanchette v. New England Telephone & Telegraph Co., 6 Atl. (2d) 161; Larson v. Dubuque Fire & Marine Insurance Co., 238 Mich. 366, 213 N. W. 140; American Barge Line v. Board of Supervisors, 246 Ky. 573, 55 S. W. (2d) 416; Cousins v. Sovereign Camp W. O. W., 120 Tex. 107, 35 S. W. (2d) 696.]

No doubt this is a general rule, but there are exceptions to this rule, and those are where the Legislature used the word “resident” so as to include both domestic and foreign corporations.

One of the texts relied upon by relator says, “As a general rule, for jurisdictional purposes, corporations are deemed ‘residents’ or ‘inhabitants’ of particular places, and such place is usually the jurisdiction in which it was incorporated. The rule universally obtaining in both England and the United States is that a company, for jurisdictional purposes, may have a domicile both where it was created and where it transacts business.” [8 Fletcher Cyclopedia on Corporations, sec. 4029.]

Note what the other text relied upon by relator says: “It seems that some courts have made a distinction between the citizenship and the residence of a corporation. The local residence in strictness is where its chief corporate activities are conducted and this is usually held to be the location of its principal office as stated in its articles of incorporation. In an early Illinois case, it was held that the residence of a corporation was necessarily where it exercised corporate functions, and that the corporation in the case in question had legal residence in any county in which it operated its railroads. In a later case the same court said: ‘While the citizenship of the corporation would depend upon the place of the law for its creation, its residence might, manifestly, upon the principle above stated, be in any state where it was, by comity, permitted to exercise its franchise. ’ This distinction has been recognized, between citizenship and what has been termed inhabitancy, in the case of a foreign corporation. While a corporation is said to be a citizen only of the state in which it is created, yet it may for certain purposes, if an alien corporation, be considered an inhabitant or resident of the state where it has its principal place of business. But independent of statute, however, it is not absolutely essential to the existence of a corporation that its principal office be fixed or even that it have such office.” [1 Thompson on Corporations (3 Ed.), sec. 566.]

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Bluebook (online)
160 S.W.2d 687, 349 Mo. 225, 1942 Mo. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-northwestern-mutual-fire-assn-v-cook-mo-1942.