62 Neb. 783 | Neb. | 1901
Lead Opinion
This is an action brought by defendant in error in the county court of Douglas county to recover of plaintiff in error $514.28 on an accident insurance certificate issued by plaintiff in error. It appears from the record that plaintiff in error is an insurance company incorporated under the laws of this state, its location and place of business being at Grand Island, Hall county; that it issued a certificate to one Henry 0. Cook, who was injured by an accident at Sheldon, Bryan county, Iowa, which he claims resulted in his total disability from May 10 to October 1, 1895, to his damage in the sum of $514.28; that the amount due him on his certificate had been assigned to defendant in error. It appears that Arthur L. Sheetz was secretary of plaintiff in error, and came to Omaha on behalf of the company for the purpose of trying to effect a settlement of the claim upon which suit is brought. The parties failed to reach an agreement, and while the secretary remained in Douglas county this action was instituted and a summons was duly issued and served upon him. The company made a special appearance in the county court, pleading that it had no agent in Douglas county; that it was not engaged in business therein; that its business had at all times been carried on at Grand Island, and that it was situated only in Hall county and not in Douglas county, and never had any place of business in Douglas county, or employees or agents engaged
Briefly stated, the contention of plaintiff in error is, first, that neither the county nor district court of Douglas county had jurisdiction, because service upon Arthur L. Sheetz, secretary of the company, while temporarily in Douglas county engaged in looking after business for the company, was not service upon the company; second, that the by-laws of the company, by which Henry C. Cook was bound, contained a provision that suit could not be brought until ninety days had elapsed after proof of loss was received by the company, that ninety days had not elapsed, and therefore the suit was prematurely brought. There seems to have been no dispute that plaintiff in error is- a domestic incorporated insurance company, with its principal place of business at Grand Island; that Arthur L. Sheetz was its secretary and general managing agent, and that he was temporarily in Douglas county attempt
The principiéis elementary that domestic corporations, being purely creatures of the statute, can only be used and jurisdiction obtained over them in the manner provided by statute. Such statutes enter into and become a part of their franchises, and it would be unjust to extend the statutes giving jurisdiction over such corporations beyond the fair and reasonable intendment of the legislature. 6 Thompson, Corporations, sec. 7540. In order to obtain a clear understanding of the principle involved in this case, it is also necessary to keep in mind the distinction between that part of the Code providing where actions may be brought and that part providing the manner in which service of summons may be had. The determination of the principal questions requires a consideration of various statutory provisions, and those of a controlling nature will, for convenience, be set out. Sections 51 to 60, both inclusive, of the Code of Civil Procedure, fix the place at which actions that can be brought under the laws' of this state must be brought. Of these sections, 55 and 60 are the only ones which have any bearing on the case at bar. Section 55 is as follows: “An action other than one of those mentioned in the first three sections of this title, against a corporation created by the
It is contended that by section 60 an action against a domestic insurance company might be brought at other places than those designated in section 55. Section 60, speaking for itself, says that it has no application, in any case provided for by preceding sections, and it has been so considered by this court. In the case of State v. Hill, 38 Nebr., 698, 704, this court, speaking through Irvine, C.,
Originally, and under the common law, corporations were created in some particular place. Thompson, Corporations, sec. 687. And they were not permitted to have two domiciles. Thompson, Corporations, sec. 688, And suit had to be brought at the domicile of the corporation. Section 55 of our Code is remedial to the extent that it allows an action to be brought in a county where a domestic corporation has a place of business, and maintains an agency for the transaction of the business for which it exists, although it might not be its principal place of business ; and, also, that it allows an action to be brought against a domestic insurance company in the county where the cause of action, or some part thereof, arose; but it does not follow from this fact that the section under consideration is not also exclusive. Sedgwick, Construction of Statutory & Constitutional Law [2d ed.], p. 32, says: “Remedial acts are those made from time to time to supply defects in the existing law, whether arising from the inevitable imperfection of human legislation, from change of circumstances, from mistake, or any other cause. The object is sometimes affected by imposing restrictions, in which case the statute is a restraining or disabling statute; sometimes by granting powers, in which case it is an enabling or enlarging statute.” Section 55 was considered in the case of Fremont Butter & Egg Co. v. Snyder, 39 Nebr., 632. The Fremont Butter & Egg Company had its principal office or place of business in Dodge county, and that, by its articles of incorporation, was fixed as its principal place of business. It also had a business house, that is, a building, which it occupied as a place of business in Wahoo, Saunders county. Suit was brought against it in Saunders county. In sustaining the jurisdiction, this court held that the action was properly brought in Saunders county under section 55, and said: “That the meaning of this statute is that a domestic corporation may be sued (a) in the county where
We will next consider the controlling sections under chapter 2, of title 5, of the Code, providing for the manner of service. The only sections applicable to a corporation such as in the case at bar are sections 73 and 74. These sections are exclusive, and have been so regarded by this court in Bankers Life Ins. Co. v. Robbins, supra. Section 73 reads as follows: “A summons against a corporation may be served upon the president, mayor, chairman of the board of directors or trustees, or other chief officer; or, if its chief officer is not found in the county, upon its cashier, treasurer, secretary, clerk, or managing-agent; or, if none of the aforesaid officers can be found, by a copy left at the office, or last usual place of business of such corporation.” Section 74 reads as- follows: “When the defendant is an incorporated insurance company, and the action is brought in a county in which there is an agency thereof, the service may be upon the chief officer of such agency.” It is contended by counsel for defendants in error that summons could be served in
The Code of Michigan, in respect of the institution of actions and obtaining service upon defendants, does not essentially differ from our own. The statute of that state providing for sexwice upon corporations is as follows: “Service of any legal process against any corporation formed under this act, may be made on the president, secretary,- or agent, or if neither of them can be found in the county in which, by their articles of association, they are to do business, then such service may be made by posting a true copy thereof on some conspicuous place at the business office of the company in said county.” If we are correct in our conclusion that the word “county” must be read in connection with each of the three alternative provisions of section 73, and that the county referred to, in case of a domestic incorporated insurance company, is the county where, under section 55, the action is authorized to be brought, then the reasoning in the case of Dewey v. Central Car Mfg. Co., 42 Mich., 399, 403, is applicable here. In that case the supreme court of Michigan, construing the section of the statute above quoted, says: “Now only two'modes of service are here authorized : First, on the president, secretary or agent, if found within the county where the business office is located, and if they are not found within that county, then second, by posting at the business office within such county. There is no middle course. The method by posting is absolute and exclusive if those upon whom the law authorizes service are out of the county. No service can be made in a foreign county. Whether it is effected on the president, secretary or agent, or by means of posting, it must be
Again, in the case of Detroit Fire & Marine Ins. Co. v. Judge of Saginaw Circuit Court, 23 Mich., 491, 495, it is said: “But if those officers are to be engaged in looking honestly after their official duties, the presumption must always he that in every county but one they will not be found, and if this section will allow suits in every county, then the personal service will be the rare exception and the constructive service the rule — a result which is neither just nor reasonable. There is no legitimate reason for making corporations generally stand on any different-footing from other persons. * * * In cases where men may suffer from personal damages from corporate negligence, there is some reason for exceptional regulations. But Avhere their relations are generally contract relations, entered into voluntarily — inasmuch as every one has knowledge, or means of knoAvledge, of the residence of all private corporations, and therefore can always tell where a suit will lie — those who chose to make agreements do it with their eyes open, and can not complain if they are compelled to site where the laAAr has required.”
Again, under the provisions of section 74, service might be made upon a corporation in any county where it had an agency, i. e.} a place of business, upon the chief officer of such agency.
It is contended that the secretary of the company being present in Douglas county transacting'the business of the
Having reached a conclusion which disposes of the case, it will not be necessary to consider other questions presented. It is therefore recommended that the judgment of the district court be reversed and the action dismissed.
For the reasons stated in the foregoing opinion the judgment of the district court is reversed and the action dismissed.
Reversed.
Dissenting Opinion
I dissent for the reasons stated in the following opinion of Hastings, C.:
Two questions are presented in this case: First, whether this action was prematurely brought; and, second, whether the county court of Douglas county had jurisdiction, and by consequence the district court on appeal. The first question would seem not difficult.
This is an action against an insurance company upon an accident policy which provides that no action shall be brought until ninety days after furnishing proofs of injury. Proofs were furnished on the 30th of September, and this action commenced on December 28, following. If ninety days were absolutely required between the filing of the proof and the institution of the action, evidently it was prematurely commenced, and should abate. Plaintiff in error quotes Judge Brewer, in Cobb v. Insurance, Co. of North America, 11 Kan., 93, to the effect that this provision in a policy is a credit, and its expiration therefore marks the maturity of the cause of action. Our own court seems not to have so regarded it. Judge Mitchell, in Hand v. National Live-Stock Ins. Co., 57 Minn., 519, 59 N. W. Rep., 538, declares this is not an extension of credit, but a privilege given for the purpose of examining proofs and investigating the loss which may be waived, by the party, and the expiration of which is not strictly the “due day"
On December 28, 1895, the plaintiff below, as assignees, wore claiming through Cook, the injured party, $514; the company’s secretary offered $440 or $450. The assignees were threatening to bring suit, and were distinctly told that no more would be offered. There is testimony that they were also told that the company recognized no liability, would pay this amount for a settlement, and if it was no't satisfactory they might sue. The offer was not accepted, and suit commenced. After its commencement the offer was raised to $465, but was not accepted. The secretary says that he never denied the existence of some liability, but does not deny telling plaintiffs below that the offer would not be raised, and if not accepted they might sue. This seems to be a sufficient waiver of further time to consider the proofs.
In deciding as to the jurisdiction more difficulty has been found. The company was organized, and has its principal place of business in Grand Island, Nebraska. It does business throughout the state, in the way of taking travelers’ accident insurance, but had no agency in Douglas county, and no resident agent there. Its secretary and manager was temporarily there at the time this summons was served, engaged in the attempt to settle this very claim, as to which the unsuccessful negotiations are stated above. Summons was served upon him," a special appearance was made in the county court, which was overruled. Lack of jurisdiction was set up in the answer in that court, and this defense found against, as well as the other one, that the action was prematurely brought. On appeal the same defenses were again set. up, and again overruled by the district court, and this court is now asked to find that there was no jurisdiction over the defendant in Douglas county, and no authority to institute the action there. The writer of this opinion has not been
It is further indicated by the repeated decisions of this court. In the case of Insurance Co. of North America v. McLimans, 28 Nebr., 653, service was made upon the local special agent of a foreign company in Madison county, upon a cause of action which had arisen in the state of Iowa. Sections 55 and 914 of the Code were cited to the point that the Madison county district court had no jurisdiction. The objection was overruled, and section 55' was declared to be remedial and not restrictive, and the jurisdiction complete. The case was reaffirmed in Springfield Ins. Co. v. McLimans, 28 Nebr., 848. In Fremont Butter & Egg Co. v. Snyder, 39 Nebr., 632, the contention that a corporation can only be sued where it has its principal place of business, and that “may” in section 55 means “must,” is expressly overruled, and it is stated that section 55 was enacted for the benefit of creditors and persons having claims against domestic corporations. In Council Bluffs Canning Co. v. Omaha Tinware Mfg. Co., 49 Nebr., 537, the assertion of jurisdiction on the part of the court is justified under section 59, and also under section 60, neither of which would apply in that case if section 55 is to be held restrictive. There seems no question that these cases all contemplated that section 55, instead of restricting the operation of section 60, operates for its enlargement, and that by consequence the same rule is applicable to corporations as to individuals, viz., that they are subject to an action in any county where they may be regularly and lawfully summoned. The same doctrine is upheld as to federal corporations under a federal law somewhat similar. Van Dresser v. Oregon R. & N. Co., 48 Fed. Rep., 202.
It has been suggested that the provisions of section 60 apply only to “other” cases, and, therefore, not to cases against, corporations which are previously mentioned in section 55. Aside from the express holdings above men