Stollman v. Olmsted

203 A.D. 476, 196 N.Y.S. 689, 1922 N.Y. App. Div. LEXIS 7225
Appellate Division of the Supreme Court of the State of New York·Decided November 17, 1922·Published·Cited by 2 cases

Opinion

Merrell, J.;

The motion was made upon the grounds, first, that the defendant was a foreign corporation and was not doing business within the State at the tune of the attempted service, and that such service was not authorized by law; and, second, that the person served was not one of the persons mentioned in section 229 of the Civil Practice Act upon whom service could be made. The learned court at [477] Special Term denied defendant’s motion to vacate the service of the summons, upon the grounds, as stated in the opinion of the court, that the defendant was conducting a course of business which subjected it to the jurisdiction of the courts of this State, and was properly served.

The action was brought to recover damages for the publication within the State of New York of the photograph of the plaintiff for the purpose of advertising a medical preparation known as “Allen’s Foot Ease,” without the knowledge or consent of the plaintiff. It is the contention of the plaintiff that the defendant, appellant, Tribune Company, furnished a reproduction of plaintiff’s photograph to the Dauchy Company, also named as a defendant, and which is an advertising agency representing another defendant, one Allen S. Olmstead; and that still another defendant, Press Publishing Company, the publisher of the New York World, published said photograph as advertising matter. The defendant Tribune Company moved to set aside the service of the summons upon the claim that such activities as it' was engaged in within the State of New York did not constitute doing business here to such an extent as to submit said defendant, appellant, to the jurisdiction of our courts. As further ground for its motion, the defendant, appellant, urges that the person served with the summons was not at the time an officer or managing agent of the said defendant, or a person upon whom service of the summons could be made under the provisions of section 229 of the Civil Practice Act.

I think the court at Special Term, upon the affidavits presented, correctly held that the defendant, appellant, at the time of the attempted service of said summons, was doing business within the State of New York to an extent making it amenable to the process of our courts. The moving affidavits conclusively show that for some time prior to such attempted service the defendant maintained an office at No. 512 Fifth avenue, in the borough of Manhattan, city of New York, for the purpose of soliciting from concerns located in the so-called eastern district orders for the insertion of advertising matter in the Chicago Tribune, a newspaper published at the city of Chicago by said defendant, appellant. The eastern district, so called, comprised all that part of the United States east of the city of Buffalo, N. Y. At the office of the defendant, 512 Fifth avenue, New York city, said defendant maintains an advertising manager with eight advertising salesmen, who are engaged in soliciting orders for advertising, and also a clerical force, consisting of a bookkeeper, two stenographers, a telephone operator, and an office boy. It also appears from the affidavit of the attorney for the plaintiff that said New York office of the defendant is listed [478] • in the New York telephone directory in two places, first as Chicago Tribune,” and also as Chicago Tribune, Eastern Office.” It also appears that said defendant has an office known as Chicago Tribune Newspaper Syndicate at No. 25 Park Place, New York city, and a news bureau located in the Times Building Annex on West Forty-third street in the city of New York. While it is true that the affidavits in support of defendant’s application seek to minimize the amount or importance of the business transacted in the city of New York by the defendant, it, nevertheless, I think, satisfactorily appears therefrom that the defendant, within the authorities, was, at the time of the attempted service of such summons, doing business in the city and State of New York. (Cochfan Box & Mfg. Co., Inc., v. Monroe Binder Board Co., 197 App. Div. 221; affd., 232 N. Y. 503; Tauza v. Susquehanna Coal Co., 220 id. 259.)

A more serious question is presented by the contention of the defendant, appellant, that service was not made upon an officer or a managing agent of the defendant. Service of the summons was, in fact, made upon one William H. Field at the office and place of business of the News Syndicate Co., Inc., a corporation organized and existing under the laws of the State of New York, which publishes the newspapers known as the Daily News and Sunday News at No. 25 Park place, borough of Manhattan, in the city of New York. Field, in an affidavit in support of defendant’s application, states that he was the general manager of the News Syndicate, and that service was made upon him at 25 Park place, New York city, on May 11, 1922. Field further makes affidavit that he was not an officer of the defendant nor did he perform any of the functions corresponding to any officer of the said defendant. Field, however, did state in his affidavit that the stockholders of the defendant corporation were the same persons owning the capital stock of the News Syndicate Co., Inc., of which he was general manager. Field further swears in his affidavit that the only work he had done for the defendant was in the performance of certain special tasks from time to time assigned to him by the defendant corporation, such as going to Canada in the defendant’s interest to look after the supply of woodpulp for the paper mill in Ontario, where white paper for defendant’s newspaper is manufactured, conferring with newspaper publishers in New York on special matters, such as strikes, paper supply, labor conditions, etc., when occasion arises, and acting for the defendant when specially assigned to do so in similar, unusual and extraordinary situations. It also appears from the affidavit of said Field and from the affidavit of Chalmers M. Pancoast that the latter, for a number of years prior to the attempted service of said summons, had been advertising [479] manager in the eastern district for the Chicago Tribune published by the defendant, and that said Pancoast was in charge of the office of the defendant at No. 512 Fifth avenue, in the borough of Manhattan, New York city.

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Stollman v. Olmsted, 203 A.D. 476, 196 N.Y.S. 689, 1922 N.Y. App. Div. LEXIS 7225 (N.Y. Ct. App. 1922).

203 A.D. 476 (Stollman v. Olmsted) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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