The Lafayette Ins. Co. v. FRENCH

59 U.S. 404, 15 L. Ed. 451, 18 How. 404, 1855 U.S. LEXIS 710
CourtSupreme Court of the United States
DecidedApril 25, 1856
StatusPublished
Cited by347 cases

This text of 59 U.S. 404 (The Lafayette Ins. Co. v. FRENCH) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Lafayette Ins. Co. v. FRENCH, 59 U.S. 404, 15 L. Ed. 451, 18 How. 404, 1855 U.S. LEXIS 710 (1856).

Opinion

Mr. Justice CURTIS

delivered the opinion"of the court.

.This is.a writ of error to the circuit court of the United. States for the district of Indiana, in an action of debt on a judgment recovered in the commercial court of Cincinnati, in the State of Ohio. In the declaration, the plaintiffs are averred to be citizens of Ohio ; and they “ complain .of the Lafayette Insurance Company, a citizen of the State of Indiana.” This averment is not sufficient to show jurisdiction. It does not appear from it that the- Lafayette Insurance Company is a corporation; or, if it be such, by the law of what State it was created. The averment, that the company is a citizen of the State of Indiana, can have no sensible meaning .attached to it. This court does not hold, that either a voluntary association of persons, or an association into a body politic, created bylaw, is-a citizen of a State within the meaning of the constitution. And, therefore, if the defective averment in the declaration had not been otherwise supplied, the suit must have been dismissed. But the plaintiff’s replication alleges that the defendants are a.corporation, created under the laws of the State of Indiana, 'having its principal place of business in-that State. These allegations are confessed by the demurrer ; and they bring the case within- the decision of this court 'in Marshall v. The Baltimore and Ohio Railroad Company, 16 How. 314, and the previous decisions therein referred to;

'• Upon the merits, it’was objected that the judgment declared on was rendered by the commercial court of Cincinnati, without jurisdiction over the person sued ; and the argument was, that as this corporation was created by a law of the State of Indiana, it could have no existence out of that State, and, consequently, could not be sued in Ohio.

*406 The precise facts upon which this objection depends, are that this corporation was. created by a law .of the State of Indiana, and had its principal office for business within that State. It had also an agent authorized to contract for insurance, who resided in the State of Ohio. The contract on which the judgment in question was recovered was made in Ohio, and was to be there performed; because it was a contract with the citizens of Ohio to insure property within that State. A statute of Ohio makes special provision for suits against.foreign corporations, founded on contracts of insurance there made by them with citizens of that State; and one of its provisions is, that service of process on such resident agent of the foreign corporation shall be “ as . effectual as though the same were served on the principal.”

■ The question is, Whether a judgment recovered in Ohio against the Indiana corporation, upon a contract made by that corporation in Ohio with citizens of that State to insure property there, after the law above mentioned was enacted — service of process having been made on such resident agent — -is a judgment entitled to the same faith and credit in the State of Indiana as in the State of Ohio, under the constitution and laws of the United States,

. No question has been made that this judgment would be held binding in the State of Ohio, and would there be satisfied out of any property of the-defendants existing in that State.

The act of May 26,1790, (1 Stats, at Large, 122,) gives to a judgment rendered* in any State such faith and credit as it had in the courts of the State where it was recovered. • But this provision, though general in its terms, .does not extend to judgments rendered against persons not amenable to the jurisdiction rendering the judgments. D’Arcy v. Ketchum, 11 How. 165. And, consequently, notwithstanding the act of congress, whenever an- action is brought in one State on a judgment recovered in another, it is not enough .to- show it to be valid in the State where it was rendered; it must also appear that the defendant was either personally within the jurisdiction of the State, or had legal notice of the suit, and was in some way subject to its laws, so as to be bound to appear and contest the suit, or suffer a judgment by default. In more general terms, the doctrine of this court, as well as of the courts of many of the States, is, that this act of congress was not designed to displace that principle of natural justice which requires a person to have notice of a suit before he can be conclusively bound by its result;' nor. those rules of public" law which protect persons and property within one State from the exercise of jurisdiction over them by an-. other. . .

*407 This corporation, existing only by virtue of a law of Indiana, cannot be deemed to pass personally beyond the limits of that State. Bank of Augusta v. Earle, 13 Pet. 519. But it does not necessarily follow that a valid judgment could be recovered against it only in that State. A corporation may sue in a foreign state, by its attorney there; and if it fails in the suit, be subject to a judgment for costs. And so if a corporation, though in Indiana, should appoint an attorney to appear, in an action brought in Ohio, and the attorney should appear, the court would have jurisdiction to render a judgment, in all respects as obligatory- as if the defendant were within the State. The inquiry is not-whether the defendant was personally within the State, but whether he, or some one authorized to act for him in reference' to the suit, had notice and appeared; or, if he did not appear, whether he was bound to appear or suffer a judgment by default.

' And the true question in this case is, whether this corporation had such' notice of the suit, and was so far subject to the jurisdiction and laws of Ohio, that it was bound to appear, or take the consequences of non-appearance.

A corporation created by Indiana can transact business in Ohio only with the consent, express or implied, of the latter. State, 13 Pet. 519. This consent may be accompanied by such conditions as-Ohio may think fit to impose; and these conditions must be deemed valid and effectual by other States, and by this court, provided they are not repugnant to the constitution or laws of the United States, or inconsistent with those rules of public law which secure the jurisdiction and authority of each State from encroachment by all others, or that principle of natural justice which forbids condemnation without opportunity for defence.

In.this instance, one of the conditions imposed by Ohio was, in effect, that the agent who should reside in Ohio and enter into contracts of insurance there in behalf of the.foreign corporation, should also be deemed its agent to receive service' of process- in suits founded 'on such contracts. "We find nothing in tjhis provision either unreasonable in itself, or in conflict with any principle of public law. It cannot be deemed unreasonable that the State of Ohio should endeavor to secure to its citizens a remedy, in their domestic forum, upon this important class of contracts made and to be performed within that State, and fully subject to its laws; nor that proper means should be used to compel foreign corporations, transacting this business of insurance within the State, for their benefit and profit, to answer therefor the breach of their contracts of insurance there made and to be performed.

*408

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Cite This Page — Counsel Stack

Bluebook (online)
59 U.S. 404, 15 L. Ed. 451, 18 How. 404, 1855 U.S. LEXIS 710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-lafayette-ins-co-v-french-scotus-1856.