TaiLexi AI U.S. Case Law

Galveston City Railroad v. Hook

Galveston City Railroad Company v. George A. Hook and Edgar C. Greene

Galveston City R.R. v. Hook, 40 Ill. App. 547 (1891)
Download
Format
Include

Star paging (*137) is kept for pin cites.

Court
Appellate Court of Illinois · State Appellate Courts
Decided
July 30, 1891
Judges
Moran
Citations
40 Ill. App. 5471890 Ill. App. LEXIS 646
Headnotes
Foreign Corporations—Service of Process—Pleading—Practice. 1. A merely casual offer by the president of a foreign corporation, while temporarily sojourning in this State upon his own business, in which it has no agent or place of business, to receive a proposition relating to the business of his company, is not the transaction of business by an agent in such sense as authorizes the conclusion that the company is transacting its business in this State. 2. To be found within the State, a foreign corporation must have sent its agent on whom service is made, to the State to conduct its business therein, either continuously or fora time, so as to complete a transaction or an enterprise, or at least charged with the duty of making a particular contract in the State, or negotiating therein for the company. 3. A defendant, by pleading the general issue in a given case after a demurrer has been sustained to his plea in abatement, does not waive his rights thereunder. Nor is such plea waived where defendant asks leave to amend it after the demurrer thereto was sustained, which leave is denied. 4. In the case presented, this court holds that a certain telegram sent by the president of a foreign corporation, was not such an act as brought the same, in legal contemplation, within the State, so as to be found therein for the purpose of the service of process upon it.
Summary
In error to the Superior Court of Gook County; the Hon. Elliott Anthony, Judge, presiding. An action of assumpsit was brought by appellees against appellant in the Superior Court of Cook County. The return by the sheriff was that the summons was served on the appellant by delivering copy to W. H. Sinclair, president and director thereof. The defendant filed a piea in abatement as follows: “And the said Galveston City Railway Company, defendant in the above entitled cause, by Gardner, McEadon & Gardner, its attorneys, specially iimiting and confining its appearance to the sole purpose of filing this piea and objecting to the jurisdiction of this court in the premises, comes and defends, etc., and- says that this court ought not to have or take further cognizance of the action aforesaid as to it, because it says that said defendant company was and is a corporation aggregate, organized and existing under and by virtue of the Jaws of the State of Texas; that the location of its only office and place of business has been at all times and is within the city of Galveston, Texas, and it never had nor has any office or place of business in the State of Illinois; that the sole object for which said defendant company was formed was to erect and operate a railway in said city of Galveston, in said State of Texas, and for no other purpose whatever; that said defendant company did not reside in and was not found in said State of Illinois, and was not served with process in said State of Illinois, and that said defendant company, at the time of the commencement of this suit, theretofore and from that time hitherto has resided in the city of Galveston, State of Texas; and that it is a corporation whose legal and actual status is in the State of Texas and not elsewhere. “ This defendant further says that neither its president nor its secretary, nor its treasurer, nor any of its directors, nor any other of its officers or of its clerks or agents, reside, or have at or since the commencement of this suit resided in the State of Illinois, nor have any of them any place of business there, at or since said time; that it has not authorized any agent, officer, clerk, attorney or counselor to appear for it in this suit, except for the special purpose of objecting to the jurisdiction of this court; that William Sinclair, on whom process in this cause was served, was and is president of said company; but he was not at the time of such service within the State of Illinois on official business for the defendant, nor in any official character as the officer, director or agent of this defendant, nor otherwise than accidentally and temporarily on his own private business and pleasure, and not in any wise as representing this defendant; that said Sinclair, while in said Cook County, transacted no business for said company, nor was he authorized to transact any; that while in Cook County he telegraphed to a person in Minnesota, who once desired to buy the property of said company in Galveston, that he would be in Chicago, and while there would receive any proposition from said party for its purchase, but said Sinclair was not in Chicago for the purpose of meeting said person, but entirely on his own business and on business in no way connected with said company; and he had no authority from said company to pass on any proposition said Minnesota party might make, but only to receive it and report it to said company, and said Sinclair so knew, and did not intend to pass thereon; that said Minnesota party telegraphed in reply that he could not come apd there the matter ended; that said William Sinclair has never resided, nor has had nor has a place of business or any office in said county of Cook, but at the time of said attempted service upon this defendant through him, he resided and still resides in the State of Texas. This defendant further says that said William Sinclair was not then and there authorized to represent it as an officer, director, agent or otherwise, nor to receive service of legal process, and this the defendant is ready to verify. Wherefore it prays judgment whether this court can or will take further cognizance of the action aforesaid as to it.” A demurrer was sustained to this plea and appellant asked leave to file an amended plea leaving out the statement of the telegraph to Minnesota, but the court refused the leave. Defendant thereupon filed the general issue, and on a trial there was a verdict and judgment against appellant, to reverse which the writ of error is prosecuted.

Syllabus and headnotes are prepared by the reporter or publisher, not the court, and are not part of the opinion.

Opinion of the Court — Moran

Text extracted by OCR from a scanned original; check the original for exact wording.

Moran, P. J. We shall consider only the error in sustaining the demurrer to the plea in abatement above set out.

It would not be contended ‘that said plea would not be a good plea to the jurisdiction, had it omitted the statement that Sinclair had sent a telegram to the Minneapolis party saying he would be in Chicago, and while there would receive any proposition from said party for the purchase of the property, intending to report it to said company. We are of opinion that such message sent from Chicago, under the circumstances stated in the plea, was not such an act as brought the corporation of which said Sinclair was president, in legal contemplation within the State, so as to be found within the State for the purpose of the service of process upon it.

The corporation has no place of business within the State, and the president, on whom the process was served, did not come into the State on business of the company, but on his own private business and pleasure. A merely casual offer to receive a proposition relating to the business of the-company is not the transaction of business by an agent in such sense as authorizes the conclusion that the company is transacting its business in this State. To be found within the State, a foreign corporation must have sent its agent, on whom service is made, to the State to conduct its business therein, either continuously or for a time, so as to complete a transaction or an enterprise, or at least charged with the duty of making a particular contract in the State, or negotiating therein for the company. St. Louis Wire Co. v. Barb Wire Co., 332 Fed Rep. 802; Midland Pac. Ry. Co. v. McDermid, 91 Ill. 170 ; Silsbie v. Hotel Co., 30 Ill. App. 204 .

It is insisted that by filing the general issue after the demurrer to the plea in abatement was sustained, the plea in abatement was waived, and Bangor Furnace Co. v. Magill, 108 Illinois, 656, is relied on to sustain this contention.

This question was carefully considered by the court, and the precise point decided in Delahay v. Clement, 3 Scam. 200 . It is there shown that on sustaining a plaintiff’s demurrer to a plea in abatement, the judgment is quod respondeat ouster, and that in complying with this order to answer over, a party can not be said to abandon his plea or waive his right to a correct decision upon it, and the distinction is pointed out between such a case and one where, after a plea in bar is held bad on demurrer, the defendant asks leave to amend his plea.

The point was again considered by the Supreme Court in Weld v. Hubbard, 11 Ill. 573 , and Delahy v. Clement, cited and followed.

It is well settled by common law decisions that the judgment. after demurrer sustained to plea in abatement was to plead over to the merits, and that pleading to the merits at all before a judgment of respondeat ouster would be a waiver of the plea in abatement; but no case can be found holding that plea to the merits after respondeat ouster waived any error in sustaining the demurrer to the plea in abatement. The conclusion in Delahy v. Clement was reasoned out on the principles of common law pleading, and the point remained settled in this State for a period of forty years.

We are not willing to believe that the Supreme Court intended to reverse the rule in what was said in Bangor Furnace Co. v. Magill. From the statement in the opinion in said case, it does not appear that there bad been a judgment of respondeat ouster after sustaining a demurrer to a plea in abatement. The statement is that “ plea in abatement, and motions calling in question the sufficiency of the service, were filed or made in the trial court, and the decisions of the court touching them are assigned for error.” Of course, if the defendant filed the general issue voluntarily, and not in obedience to a judgment of the court to plead over, his act “ was a waiver of any defects in the service of summons, and it would even obviate the necessity of the service of any process at all.” The point now being considered could not have been presented by the record in the case. The court would not have overturned a point so well settled in practice, and twice directly ruled upon in its own decisions, without alluding to the prior cases and distinguishing or overruling them.

We conclude that Delahy v. Clement and Wild v. Hubbard are untouched by what is said in Bangor Furnace Co. v. Magill, and the rule announced by those cases is supported by Harkness v. Hyde, 98 U. S. 476 .

The contention that the plea in abatement was waived by defendants asking leave to amend it after the demurrer to it was sustained, which leave was denied, is no more tenable than the first position of defendant in error.

The point is directly decided in Drake v. Drake, 83 Ill. 526 , and Midland Pac. Ry. v. McDermid, supra.

For the error in sustaining the demurrer to the plea in abatement, the judgment of the Superior Court must be reversed and the case remanded.

Reversed and remanded.

How later courts describe this case

No later court has written an explanatory parenthetical about this case yet.

1892: 11898: 11904: 11909: 118922026peak 1892 · 1

Relies on it most ⓘ

  1. A. H. Woods Production Co. v. Chicago, Cincinnati & Louisville Railroad147 Ill. App. 568 (1909)
  2. Rush v. Foos Manufacturing Co.51 N.E. 143 (Ind. Ct. App. 1898)
  3. Ammons v. Brunswick-Balke Collender Co.82 S.W. 937 (Ct. App. Ind. Terr. 1904)
  4. Mt. Olive Coal Co. v. Hughes45 Ill. App. 566 (1892)

Most recent

  1. A. H. Woods Production Co. v. Chicago, Cincinnati & Louisville Railroad147 Ill. App. 568 (1909)
  2. Ammons v. Brunswick-Balke Collender Co.82 S.W. 937 (Ct. App. Ind. Terr. 1904)
  3. Rush v. Foos Manufacturing Co.51 N.E. 143 (Ind. Ct. App. 1898)
  4. Mt. Olive Coal Co. v. Hughes45 Ill. App. 566 (1892)

Citing references are not a citator: they show that a later opinion cites this case, not whether it followed, distinguished, or overruled it. Check negative history before relying on this case.

Authorities cited 5

DepthCaseCited by
Midland Pac. Ry. Co. v. McDermid, 91 Ill. 170 (1878) 18
Harkness v. Hyde, 98 U.S. 476 (1879) 208
Drake v. Drake, 83 Ill. 526 (1876) 26
Weld v. Hubbard, 11 Ill. 573 (1850) 6
Silsbee v. Quincy Hotel Co., 30 Ill. App. 204 (1889) 5

Keyboard shortcuts

/Focus the search box
j kNext / previous result
EnterOpen the selected result
xAdd / remove the selected result from the download list
n pNext / previous search term in a case
cCopy the citation of the current case
+ −Larger / smaller reading text
?Show this list