Wheeler v. Boyer Fire Apparatus Co.

248 N.W. 521, 63 N.D. 403, 1933 N.D. LEXIS 194
CourtNorth Dakota Supreme Court
DecidedMay 13, 1933
DocketFile No. 6140.
StatusPublished
Cited by9 cases

This text of 248 N.W. 521 (Wheeler v. Boyer Fire Apparatus Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeler v. Boyer Fire Apparatus Co., 248 N.W. 521, 63 N.D. 403, 1933 N.D. LEXIS 194 (N.D. 1933).

Opinion

Burke, J.

This is an action to recover commissions claimed to be due the plaintiff from the defendant under a sales contract. The plaintiff is a foreign corporation and the summons was served upon one P. L. Speed. After the service of the summons, the' defendant appeared specially and objected to thé jurisdiction of the court on the ground that no legal service of the summons had been made upon the defendant and moved to dismiss the action. The motion was based upon the affidavit of P. L. Speed, upon whom the summons was served, and who states, in his affidavit, that he is the soliciting agent for the defendant company, working on a salary and commission on sales accepted; that he is furnished, with advertising diagrams and pictures of the various *406 articles manufactured by tbe defendant company at tbeir place of business, to-wit: Logansport, Indiana; that his sole and only authority is to solicit orders and that when such orders are solicited or obtained by said affiant, the said orders are sent to the defendant at Logansport, Indiana for their approval and acceptance and that the defendant had no property in the state of North Dakota.

There is also an affidavit by S. 0. Cook, vice president of the defendant company, who states that no officer of the company has been served with the summons in said cause nor has the defendant waived the service of a summons in said cause, and that the defendant is not doing business in the state of North Dakota.

The plaintiff resisted the motion for dismissal, filing his affidavit, stating that on or about the 10th day of July, 1930, the plaintiff was notified by the defendant that the contract between the plaintiff and defendant had been terminated and on or about the 15th day of July, 1930, affiant received a letter from the defendant stating that P. L. Speed had been appointed sales representative for them in .this territory and that affiant should turn over to said P. L. Speed all advertising and sales material in his possession at that time belonging to defendant; that the said P. L. Speed had been acting as sales representative and apparatus engineer for defendant in the territory covered by affi-ant’s contract at all times since sometime prior to the 15 th day of July, 1930; that the said P. L. Speed had closed contracts at Steele and Jamestown, North Dakota and also at Beach, North Dakota, during July and August, 1930; that at all times since his appointment as sales representative in July, 1930, the said P. L. Speed has been engaged solely as agent and representative for the defendant in the State of North Dakota, is a resident of Minot, North Dakota, and that the cause of action set forth in the complaint arose within the state of North Dakota.

The motion to dismiss was overruled, a jury was waived, the case was tried to the court, and findings of fact and conclusions of law favorable to the plaintiff were made upon which judgment, was entered and the defendant appeals from the judgment and from an order denying a new trial.

The first question arises on the specification of error namely: that the court erred in denying defendant’s motion to dismiss the action on *407 the ground that no legal service of tbe summons bad been made upon the defendant.

It is conceded that the defendant company has not appointed the secretary of state as agent, upon whom sendee of process may be made- and that service of the summons, if it could be made at all, would have to be made under subdivision 6 of Section 1426, Compiled Laws, 1913,, which reads as follows: “In all cases when a foreign corporation, joint stock company or association shall not have appointed either the secretary of state or commissioner of insurance, as the case may be, as its-lawful attorney upon whom service of process may be made, and such foreign corporation, joint stock company or association cannot be personally served with such process according to the provisions of subdivision 5 of this section, it shall be lawful to serve such process on any person who shall be found within this state acting as the agent of,, or doing business for, such corporation, joint stock company or association. But the service provided for in this subdivision can be made upon a foreign corporation, joint stock company or association only when it has property within the state or the cause of action arose therein.”

It is admitted that Mr. Speed was, at the time of the service of the-.summons on the defendant, engaged in soliciting sales for the manufactured products of the defendant in the state of North Dakota. Mr. Speed states, in his affidavit, that he is the soliciting agent for the Boyer Eire Apparatus Company and it appears that Mr. Speed had closed contracts, or taken orders, at Steele, Jamestown, and Beach,. North Dakota prior to the 15th day of July, 1930, and that he was-devoting his time to soliciting orders for the sale of defendant’s goods in the state of North Dakota at the time of the service of the summons upon him.

It is the contention of appellant that since the contracts, or orders, procured by Mr. Speed were subject to the approval of the home office-at Logansport, Indiana, that they did not have any agent in North Dakota upon whom service could be made.

Clearly, under the statute, if a foreign corporation has not appointed the secretary of state as its lawful attorney upon whom service of process may be made, it is “lawful to serve such process on any person who shall be found within this state acting as the agent of, or doing *408 business for, sucli corporation.” He may be an agent but it is not absolutely necessary. Lawful service may be made on “any person who shall be found within this state (1) acting as agent of, or (2) doing business for, such corporation.”

While plaintiff was sales agent for the defendant company he received many letters from the company urging him to complete sale prospects. Under date of April 7, 1930, in a letter introduced as exhibit “K,” among other things the defendant said: “It is either a case of definite results or we have to look for other sales representation. You certainly have had sufficient experience now to enable you to do a good volume of business and make some money for yourself and your company, provided your experience is worth anything to you. . . . On the strength of your statement in your letter that you have quite a few prospects, two of which you expect to close in April and several in the near future, we are wiring you at Aberdeen, enclosing a confirmation of our wire, in which we are telling you that we are willing to continue until April 25, which will give you an opportunity to close these iivest prospects of yours and if you close one by that date, we are then willing to continue indefinitely. The last thing in the world we want to do is to change field representatives as these changes are expensive and involve going all through the educational stages again; however, we must have a satisfactory volume of business and the only way we can get it is through our field organization. If the individual is not producing, then we have to make changes until we do get a satisfactory volume of business from every territory.” There are many other similar letters in the record.

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Bluebook (online)
248 N.W. 521, 63 N.D. 403, 1933 N.D. LEXIS 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeler-v-boyer-fire-apparatus-co-nd-1933.