Sullivan v. Sullivan Timber Co.

103 Ala. 371
CourtSupreme Court of Alabama
DecidedNovember 15, 1893
StatusPublished
Cited by65 cases

This text of 103 Ala. 371 (Sullivan v. Sullivan Timber Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sullivan v. Sullivan Timber Co., 103 Ala. 371 (Ala. 1893).

Opinion

BRICKELL, C. J.

The appellant, by summons and complaint, commenced an action against the appellee, averred to be a corporation under the laws of the State of Florida, doing business in the county of Conecuh. Service of summons was made in that county upon J. W. Black, the president of the company. The complaint contains two counts — the one for an account stated ; the other for work and labor done. The defendant appeared and pleaded in abatement, alleging that it had a known place of business, and an authorized agent therein, in the city of Mobile, and that, at the time of the commencement of the suit, it was not doing business in the county of Conecuh. To this plea, the plaintiff demurred, assigning three causes; the first and second were, that the plea did not negative the fact that the defendant was doing business in the county of Conecuh, when the contracts were made on which the suit is founded ; the third, that it did not appear from the plea that the court had not local jurisdiction of the action. The demurrer was overruled, and issue was taken on the plea. The defendant introduced evidence showing that its,principal place of business was in Mobile,, where it had authorized agents. It owned a saw mill in the [373]*373county of Escambia, and a railroad running therefrom, three or four miles into the county .of Conecuh, and a derrick in that county, which had been used for the purpose of supplying the mill with logs. Inconsequence of litigation, the operation of the mill had been stopped prior to the commencement of the suit, and after its stoppage, the company had not. done any business in Conecuh county. The plaintiff introduced evidence showing that at or about the time of the commencement of the suit, the defendant had a person in possession and taking care of the railroad and derrick; and that subsequent to the commencement of the suit, an agent of the company paid the taxes on its property in Conecuh county. This was all the evidence, and at the request of the defendant, the court instructed the jury .to find the issue for the defendant. The rulings on the demurrer, and the instruction given to the jury, form the matter of the assignments of error.

It is apparent the case draws in question the construction of the last clause of the fourth section of the fourteenth article of the constitution, and of the statute, Code, § 2642. The section of the constitution in its entirety reads : “No foreign corporation shall do any business in this State without having at least one known place of business, and an authorized agent or agents therein ; and such corporation maybe sued in any county where it does business by service of process on an agent anywhere in the State.” The statute reads : “A foreign or domestic corporation may be sued in any county in which it does business by agent.7 7 The section of the constitution, and the statute, (which in so far as it relates to foreign corporations, is merely affirmatory of, the constitution), are remedial, intended to supply defects or correct mischiefs in the pre-existing state of the law ; and in their construction, we are to consider what was the law before the constitution was adopted, and prior to the enactment of the statute ; what were the defects it was intended to supply, or the mischiefs it was intended to coi’rect.

By the common law, to maintain a personal action against a corporation, there must have been service of process upon its head or principal officer within the jurisdiction of the sovereignty from which corporate existence was derived. The officer upon whom, in the sov[374]*374ereignty of its creation, service could be legally effectéd, binding the corporation, it may be, could be found in another jurisdiction, but he was not deemed to bear with him his official functions, and service upon him there effected, would not bind or affect the corporation. Whatever of legal proceedings could be pursued against the corporation, elsewhere than within the sovereignty of its creation, must have been authorized by legislation of the forum in which such proceedings were instituted. — St. Clair v. Cox, 106 U. S. 354; Aldrich v. Anchor C. & D. Co., 32 Pac. Rep. 756 ; McQueen v. Middletown Man. Co., 16 Johns. 5; Peckman v. Haverhill, 16 Pick. 274, 286; Moulin v. Ins. Co., 24 N. J. Law, 244; Camden Rolling Mill Co. v. Swede Iron Co., 32 N. J. Law, 15. Upon principles of comity, there was acquiescence in the maintenance of suits in this State by foreign corporations , and the making by them of such contracts as they had by the law of their creation capacity to make, if thereby our own' laws of public policy were not offended. — Lucas v. Bank of Georgia, 2 Stew. 147 ; Hitchcock v. U. S. Bank, 7 Ala. 386 ; Mayor v. Rodgers, 10 Ala. 37 ; W. U. Tel. Co. v. Pleasants, 46 Ala. 641; Eslava v. Ames Plow Co., 47 Ala. 384; Imp. & Exp. Co. v. Locke, 50 Ala. 332 ; Thorington v. Gould, 59 Ala. 461. But there was no statute providing for or regulating suits against them, except the statute authorizing the issue of an attachment for the seizure of property belonging to them, found in the State. — Code, 1852, § 2513 ; R. C. 1867, § 2938 ; Code, 1876, § 3263 ; Code, 1886, § 2940.

Private corporations, created and organized for the transaction of business and the derivation of pecuniary profits, are, in this country, it is said, mainly the growth of the last seventy-five years. In McKin v. Odom, 3 Bland. Ch. 407-418 (1828), it was said by Ch. Bland, that no instance of such a corporation- in colonial times could be found. — Cook on Stocks and Stockholders, § 1. The increasing ^number of such corporations, and the variety and extent of the business they were created and organized to transact, their presence by agents, either by acquiescence, or by legislative permission, in other States, in the exercise of their general powers, making contracts, acquiring and disposing of property, rendered the rules of the common law, to which we have referred, the source of frequent inconvenience and injustice, compe^l[375]*375ing a modification or relaxation of them. The principle came to be accepted, that if a foreign corporation sent its agents into’another State, and there, by acquiescence or legislative permission of the State, engaged in the transaction of business, upon all causes of action there arising, it became subject to suit in such mode as the law of the State provided, or if there was no special provision for such suits, in the mode prescribed for suits against domestic corporations of like character. — Moulton v. Ins. Co., supra; St. Clair v. Cox, 106 U. S., supra; Railroad Co. v. Harris, 12 Wall. 65 ; Railway Co. v. Whitton, 13 Wall. 270 ; Ex parte Sehollenberger, 96 U. S. 369 ; Aldrich v. Anchor C. & D. Co., supra. But if the corporation was not engaged in the transaction of business, or had not property within the State which could be reached by attachment, though its head or principal officer may there have had his personal residence, or may have been found there casually, there could not be a valid service of process compelling it to appear ; and without a voluntary appearance, there could be no judgment rendered which would bind or affect it. The period of time at which it must have been engaged in the transaction of business within the State, to authorize a personal action against it, by the service of process on its principal officer, or other agent, was the commencement of the suit.

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Bluebook (online)
103 Ala. 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullivan-v-sullivan-timber-co-ala-1893.