Stone v. Chesapeake & Columbia Investment Co.

15 App. D.C. 585, 1900 U.S. App. LEXIS 5269
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 17, 1900
DocketNo. 932
StatusPublished

This text of 15 App. D.C. 585 (Stone v. Chesapeake & Columbia Investment Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Chesapeake & Columbia Investment Co., 15 App. D.C. 585, 1900 U.S. App. LEXIS 5269 (D.C. Cir. 1900).

Opinion

Mr. Justice Morris

delivered the opinion of the Court:

This is a suit instituted in the Supree Court of the District by the appellee, The Chesapeake and Columbia Investment Company, of the State of Virginia, a body corporate organized under the laws of that State, to recover from the appellant, David D. Stone, the amount of a promissory note for $2,000, less a credit thereon of i|279.10, which promissory note had been executed by Stone to the order of N H. Shea, treasurer of the company, and by Shea duly indorsed to the company. The declaration was in assumpsit, and was supported by affidavit. The defense was a plea in abatement to the effect that, on March 3, 1898, after the organization of the company, and after the execution and delivery of the note in suit, which bore date on December [587]*5874, 1897, and was payable in three months thereafter, there was enacted by the State of Virginia a statute which required certain companies incorporated in that State to certify within thirty days after each annual meeting to the clerk of the county or corporation court where the principal office of the company was located, a list of the officers and directors of the company elected at such annual meeting; and, further, that when the officers and directors of any such company were non-residents of the county or corporation, it should appoint some practicing attorney at law, resident in the county or corporation where the principal office of the company was located, as the attorney or agent of the company, upon whom all legal process might be served, and who should be authorized to enter an appearance for it; and which statute further provided that, upon failure of any company to comply with these requirements, it was prohibited from exercising any rights whatever under its charter of incorporation until the provisions of the act should have been complied with; that the plaintiff company, on November 1, 1898, had held its annual meeting at Alexandria, in the State of Virginia, where its principal office is located, and had then and there elected officers and directors, all of whom were non-residents of the State, and had not within thirty days thereafter, or at any time before the time of the filing of the plea, certified a list of such officers and directors to the clerk of the county or corporation court, and had not appointed any attorney for it to receive service of process and to appear on its behalf; and, therefore, that the plaintiff was not entitled to maintain the present suit. This plea was supported by an affidavit sustaining the statements contained in it, but having no reference to the general merits of the action.

To this plea a demurrer was interposed on behalf of the plaintiff; and the demurrer was sustained by the court, with leave to the defendant to plead farther within twenty days. But the defendant failed to plead further, and elected [588]*588to stand by his plea in abatement; and thereupon judgment was entered for the plaintiff, from which the defendant has appealed.

It is urged on behalf of the appellant that the only question for our consideration is that which is suggested by the ground of demurrer specially assigned in the court below; and that is, whether the statute of Virginia set forth in the plea of abatement has any extraterritorial effect. And in support of this position is cited the third section of Rule V of this court, which provides that “in no case will this court decide any point or question that was not fairly presented for decision by the court below.” But there is evident misapprehension of the scope and purpose of this rule. The question presented in this case for decision by the court below was not whether a certain statute of the State of Virginia was entitled to have any extraterritorial force; but whether a certain plea in abatement interposed as a defense to the action was a sufficient defense in law. Of course, every proposition of law assigned in support of a demurrer or against it may be said to raise a question of law for determination both by the court below and by this court. But plainly the rule is not intended to refer to such questions as those. If it were otherwise, we might be called upon to reverse a perfectly good judgment, because perchance an insufficient reason or an untenable ground might have been assigned for its rendition. The questions contemplated by the rule are questions raised by the record and upon the record, and not merely questions of law advanced in argument.

Moreover, it is apparent from the record itself that the question of the extraterritorial force to be given to the statute of Virginia in this case was only “one of the matters intended to be argued in support of the demurrer.” The demurrer was a general demurrer; and 'in support of it might be adduced any reason or ground whatever, supposed to be good in law, to show the legal insufficiency of [589]*589the defendant’s plea; although, in order to prevent surprise upon the other side, and likewise to prevent the introduction of frivolous demurrers, the rules of the Supreme Court of the District very properly.require that to every demurrer there should be appended a statement of some substantial matter of law intended to be argued, and that a demurrer without such statement, or with only a frivolous statement, might be set aside and judgment entered as for want of plea.

Any question of law, therefore, proper to have been considered in the court below under the general demurrer, whether it was actually considered or not, may properly be considered here on this appeal. And we find that there is more than one such question in this case.

In the first place, it is urged on behalf of the appellee, in accordance with the ground of demurrer specially assigned in the court below, that the statute of Virginia set up in the defendant’s plea has no extraterritorial force; that it is. penal in its nature, and incapable of application outside of the State of Virginia. In the next place, it is contended that, even if the statute could properly be enforced in the District of Columbia, no sufficient facts are stated in the plea whereby to bring this case within the operation of the statute. And there is likewise grave question of the constitutionality of the enactment, if it be assumed to be applicable to contracts entered into before the statute was passed, such as the contract is which is sought to be enforced in the present suit, upon which even a right of suit had accrued long before the occurrence of any default by the plaintiff under the provisions of the statute.

Questions of great nicety and importance are presented by the first and third of these contentions; but we do not deem it necessary to determine them in the present case. We would only say that a statute of another jurisdiction, the apparent effect of which is to interfere with the due administration of justice in this District, and therefore to concern the matter of remedy rather than that of right, should be [590]*590very plainly shown to be properly applicable to the substantial rights of the parties before it can be allowed to have effect in this jurisdiction. But without determining these questions, we may rest our decision in this case exclusively on the view which we take of the facts set forth in the plea of abatement.

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15 App. D.C. 585, 1900 U.S. App. LEXIS 5269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-chesapeake-columbia-investment-co-cadc-1900.