Vischer v. Dow Jones & Co.

59 N.E.2d 884, 325 Ill. App. 104, 1945 Ill. App. LEXIS 287
CourtAppellate Court of Illinois
DecidedFebruary 13, 1945
DocketGen. No. 42,830
StatusPublished
Cited by5 cases

This text of 59 N.E.2d 884 (Vischer v. Dow Jones & Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vischer v. Dow Jones & Co., 59 N.E.2d 884, 325 Ill. App. 104, 1945 Ill. App. LEXIS 287 (Ill. Ct. App. 1945).

Opinion

Mr. Justice Scanlan

delivered the opinion of the court.

Plaintiff filed his complaint in equity against Dow Jones & Company, Inc., a New York corporation; Financial Press Companies of America, a voluntary, trust of Massachusetts, and Illinois Telegraph News Company, an Illinois corporation. Defendant Dow Jones & Company, Inc., filed a limited and special appearance for the sole purpose of moving to quash the purported service upon it, on the ground that it is not present in the State of Illinois and subject to the jurisdiction of the Superior court. Defendant Financial Press Companies of America filed a like appearance and a like motion, and in its motion it also contended that it is not a legal entity which can be sued. After affidavits had been filed in support of the said motions and against them the trial court sustained both motions. Defendant Illinois Telegraph News Company-filed a motion to dismiss the complaint for want of equity. This motion was also allowed. Plaintiff appeals.

For the purposes of this appeal it is sufficient to state that plaintiff, in his complaint, seeks a rescission of an oral contract of employment alleged to have been made between him and Dow Jones & Company, on March 7, 1930; a reconveyance of certain patents granted on certain mechanisms pertaining • to news tickers which plaintiff invented while in the employ of Dow Jones & Company and Dow Jones & Company, Inc., and an accounting. The complaint alleges that it was agreed that plaintiff was to head a new department to produce news tickers and that his compensation was to be $10,000 per year, payable monthly; that he was to assign all patent applications for improvements of the news ticker invented by him during the term of his employment to Dow Jones & Company or its designee, and that his employment should continue during the life of the patents obtained. The complaint further alleges that Dow Jones & Company, Inc., was incorporated on November 21, 1930, and assumed the benefits and obligations of the employment contract, and that it continued to pay plaintiff his salary of $10,000 per year until November 15, 1932, when said defendant notified plaintiff that his services were no longer desired, and that they would terminate as of January 1, 1933. The complaint further alleges that a fiduciary relationship existed between plaintiff and Dow Jones & Company and that that Company and its successor, Dow Jones & Company, Inc., were guilty of fraud which induced the making of the contract because it was the intention of Dow Jones & Company, at the time. of the making of the contract, to have plaintiff establish the new department for the manufacture of news tickers and then discharge him. The complaint further alleges that “The Financial Press Companies of America, owns and controls all or substantially all of the capital stock of all the other defendants;” and “it is the parent corporation of all said defendants.”

Plaintiff contends that the trial court erred in sustaining the motion of defendant Dow Jones & Company, Inc., to quash the summons and purported return of service. This contention involves the question as to whether or not Dow Jones & Company, Inc., was doing business within this State in such a degree, as to subject it, a New York corporation, to the jurisdiction of our courts. Where the business shown in a given case is, in substance, nothing more than mere solicitation of business it is not sufficient to subject a foreign corporation to the local jurisdiction. Bull & Co. v. Boston & M. R. R., 344 Ill. 11, cited by the instant defendant, is a case in point. One of the cases cited in support of the trial court’s ruling is Green v. Chicago, Burlington Quincy Ry., 205 U. S. 530 (1907). There the plaintiff appealed from a ruling of the United States Circuit Court holding that the defendant was not doing business within the Eastern District of Pennsylvania in such a manner and to such an extent as to warrant the inference that through its agent it was present there. The opinion states the facts as follows (pp. 532, 533):

“The eastern point of the defendant’s line of railroad was at Chicago, whence its tracks extended westward. The business for which it was incorporated was the carriage of freight and passengers, and the construction, maintenance and operation of a railroad for that purpose. As incidental and collateral to that business it was propel, and, according to the business methods generally pursued, probably essential, that freight and passenger traffic should be solicited in other parts of the country than those through which the defendant’s tracks ran. For the purpose of conducting this incidental business the defendant employed Mr. Heller, hired an office for him in Philadelphia, designated him as district freight and passenger agent, and in many ways advertised to the public these facts. The business of the agent was to solicit and procure passengers and freight to be transported over the defendant’s line. For conducting this business several clerks and various travelling passenger, and freight agents were employed, who reported to the agent and acted under his direction. He sold no tickets and received no payments for transportation of freight. When a prospective passenger desired a ticket, and applied to .the agent for one, the agent took the applicant’s money and procured from one of the railroad's running west from Philadelphia a ticket for Chicago and a prepaid order, which gave to the applicant, upon his arrival at Chicago, the right to receive from the Chicago, Burlington and Quincy Bail-road a ticket over that road. Occasionally he sold to railroad employes, who already had tickets over intermediate lines, orders for reduced rates over the defendant’s lines. In some cases, for the convenience of shippers who had received bills of lading from the initial line for goods routed over the defendant’s lines, he gave in exchange therefor bills of lading over the defendant’s line. In these bills of lading it was recited that they should not be in force until the freight had been actually received by the defendant.”

The Supreme Court held (jp. 533) that “The business shown in this case was in substance nothing more than that of solicitation,” and the judgment of the Circuit court was affirmed. But the Green case was followed by International Harvester Co. v. Kentucky, 234 U. S. 579 (1914), which is probably the leading case upon the question now before us. To quote from the opinion of the court in that case (pp. 582-589) :

“It appeared that prior to October 28, 1911, before this indictment was returned, the Harvester Company had been doing business in Kentucky and had designated Louisville, Kentucky, as its principal place of business, in compliance with the statutes of Kentucky in that respect. It further appeared that the Company had revoked the agency of one who had been appointed under the Kentucky statute and had not appointed anyone else upon whom process might be served.
“. . . We come then to the first question in this case, which is, Whether under the circumstances shown in this case the Harvester Company was carrying on business in the State of Kentucky in such manner as to justify the courts of that State in taking jurisdiction of complaints against it.

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Bluebook (online)
59 N.E.2d 884, 325 Ill. App. 104, 1945 Ill. App. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vischer-v-dow-jones-co-illappct-1945.