Town of Hinckley v. Kettle River Railroad

72 N.W. 835, 70 Minn. 105, 1897 Minn. LEXIS 23
CourtSupreme Court of Minnesota
DecidedNovember 11, 1897
DocketNos. 10,735-(100)
StatusPublished
Cited by17 cases

This text of 72 N.W. 835 (Town of Hinckley v. Kettle River Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Hinckley v. Kettle River Railroad, 72 N.W. 835, 70 Minn. 105, 1897 Minn. LEXIS 23 (Mich. 1897).

Opinion

MITCHELL, J.

The defendant, a domestic corporation, was organized for the purpose of constructing and operating a short railroad, about four miles ' long, within the limits of the plaintiff town, commencing at a point on the line of the St. Paul & Duluth railroad.

In 1886, the town, in pursuance of the provisions of Laws 1877, c. 106 (G. S. 1894, §§ 2771-2783), voted to issue to the defendant company its bonds to the amount of $12,000, bearing interest, to aid in the construction of the road. The road was completed and put in operation about January 1, 1888, and the bonds of the town to the amount voted delivered to the company. The defendant entirely ceased to operate the road about March 1, 1890, and in July, 1891, the rails, sleepers, switches, ties and other railroad appurtenances were taken up and carried away, and the road entirely vacated and abandoned. In 1894the town commenced this action for the recovery of its bonds, or the value thereof, in case a return could not be obtained. Service of the summons was made on the defendant under the provisions of G. S. 1894, § 5203, and not otherwise. The defendant failed to appear in the action, and judgment was rendered against it on October 1, 1894, for $14,400, being the cash value of the bonds on May 1,1890, with interest thereon from that date.

, On November 30, 1896, the defendant gave notice of a motion to vacate and set aside the judgment, and for leave to answer, on the grounds: First, that the judgment was void, because the court had never acquired jurisdiction of it, no legal service of the summons having ever been made; and, second, that the judgment against the defendant was taken by its mistake, inadvertence, and excusable neglect. This appeal is from an order denying this motion.

[109]*109Defendant’s contentions in support of the first ground are: (1) That the act under which the service of the summons was attempted to be made is unconstitutional, because not due process of law; (2) that the proof of service shows that the provisions of the act were not complied with. G. S. 1894, § 5203, reads as follows:

“Whenever any corporation created by the laws of this state or late territory of Minnesota, does not have an officer in this state upon whom legal service of process can be made, of which the return of the sheriff shall be conclusive evidence, an action or proceeding against such corporation may be commenced in any county where the cause of action or proceeding may arise or said corporation may have property; and service may be made upon such corporation by depositing a copy of the summons, writ, or other process or citations, in any proceeding for the collection of unpaid personal property taxes, in the office of the secretary of state, which shall be taken, deemed and treated as personal service on such corporation : provided, that whenever any process, writ, or citation against or affecting any corporation aforesaid is served on the secretary of state, the same shall be by duplicate copies, one of which shall be filed in the office of said secretary of state, and the other by him immediately mailed, postage prepaid, to the office of the company, or to the president, secretary, or any director or officer of said corporation, as may appear or be ascertained by said secretary from the articles of incorporation on file in his office.”

In support of their contention that this statute does not provide for due process of law, counsel for defendant rely greatly on Bardwell v. Collins, 44 Minn. 97, 46 N. W. 315. But an examination of the opinion in that case will show that it is carefully guarded, and makes a clear distinction between defendants who are personally within the state, and can be found therein and personally served, and those who, although residents of the state, cannot be found and personally served, as, for example, where they have absconded therefrom, or kept themselves concealed therein, in order to avoid the service of process. All that was decided was that, as to the former, service merely by publication in actions in personam of a strictly judicial character, proceeding according to the course of the common law, was not due process of law; but it was expressly conceded that as to defendants who could not be found and served in person some other mode of service had, from the necessities of the case, always been recognized as “due process of law.” We consider [110]*110this so well settled as not to require either discussion or the citation of authorities.

If. the mode of service provided for is, under the circumstances, reasonable and appropriate to the case, it is “due process of law,” and, as to citizens and residents of the state, will give jurisdiction of the person, and support a personal judgment against them, although they were not served in person. Freeman, Judgm. § 127. There is no class of cases where there is greater necessity for, or propriety in, providing for some substitute for service in person than where domestic corporations have no officers who can be found in the state upon whom to make service of process; and we can conceive of no other form of service which would in such cases be more appropriate and more likely to communicate notice of the commencement of the action to the corporation than the one provided in this statute.

The feature of the statute which is most earnestly assailed by counsel is that which makes the return of the sheriff conclusive evidence that there were no officers of the corporation within the state upon whom legal service could be made. Conceding, without deciding, that in so far as it makes the sheriff’s return conclusive this provision is invalid, this would not render the other provisions invalid or inoperative, or render void a service of process when made in accordance with the statute in a case falling within its provisions. We would simply cut down the operation of the obnoxious provision sufficiently to make it valid by holding that the return of the sheriff was only prima facie evidence of the fact therein stated.

Aside from the sheriff’s return, the affidavits used on the motion abundantly showed that this case was within the purview of the statute. The defendant had entirely abandoned the business for which it was organized, and torn up and removed its railroad. It had neither office, officer, nor even employee anywhere along the line of its former road. It had no visible office in St. Paul, which, according to its articles of organization, was where its general office and principal place of business was to be kept. If it had any officers in the state, the public had no means of finding out who they were. The mere fact that the corporation might have within the state some officers on paper would not take the case out of the operation of the [111]*111statute if parties desiring to bring action against it had no means of finding out who they were. Upon the showing made, this defendant appears to have disappeared from public view as completely as if it had never existed.

2. The affidavit of the secretary of state is to the effect that two true duplicate copies of the summons were deposited in his office; that one of them was filed therein,

“And the other copy was immediately mailed postage prepaid by the secretary aforesaid [himself], to the Kettle River Railroad Company, that being as ascertained by said secretary to be the name of the defendant corporation named in said summons from the articles of incorporation on file in his office, and his best information, at St.

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Cite This Page — Counsel Stack

Bluebook (online)
72 N.W. 835, 70 Minn. 105, 1897 Minn. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-hinckley-v-kettle-river-railroad-minn-1897.