Simpkins v. Council Manufacturing Corporation
Citation | 332 F.2d 733 |
Decision Date | 10 June 1964 |
Docket Number | No. 17519.,17519. |
Parties | Joe SIMPKINS, d/b/a Joe Simpkins Equipment Leasing Company, et al., Appellants, v. COUNCIL MANUFACTURING CORPORATION, a Corporation, Appellee. |
Court | United States Courts of Appeals. United States Court of Appeals (8th Circuit) |
Martin Schiff, Jr., of Husch, Eppenberger, Donohue, Elson & Cornfeld, St. Louis, Mo., Harold D. Carey of Hinkel & Carey, St. Louis, Mo., for appellant.
John J. Cole of Heneghan, Roberts & Cole, St. Louis, Mo., for appellee.
Before VAN OOSTERHOUT, RIDGE and MEHAFFY, Circuit Judges.
VAN OOSTERHOUT, Circuit Judge.
The troublesome question presented by this appeal is whether the defendant Council Manufacturing Corporation, an Arkansas corporation, not licensed in Missouri, had sufficient minimum contacts with Missouri so as to be "doing business" in Missouri and to be amenable to process in that state and whether defendant's corporate presence in Missouri was manifested by Littrell, the person upon whom service of process was attempted. Such issues arose upon defendant's motion to quash summons and dismiss plaintiffs' complaint for lack of jurisdiction over the defendant.
The record before us includes the amended complaint, the motion, various affidavits and testimony bearing upon the jurisdiction issue. The motion to dismiss for want of jurisdiction was sustained without prejudice to plaintiffs' right to prosecute the suit in the proper forum. The court's memorandum opinion is published at 221 F.Supp. 111. This timely appeal is taken from the final judgment of dismissal.
Plaintiffs' pleaded cause of action is that plaintiffs were fraudulently induced to purchase from defendant certain ice-making and vending equipment for $37,000. Breach of warranty is also pleaded. It is asserted that the machinery sold did not function as represented or warranted. Plaintiff Simpkins claims $32,000 actual damages and $25,000 punitive damages.1
The complaints contain no allegation as to the place the cause of action arose. Plaintiffs have neither pleaded nor proved that the transaction giving rise to this cause of action originated in Missouri. The only relevant evidence in the record as to place of sale is that all sales made and accepted by defendant were consummated at Fort Smith, Arkansas.
Defendant is an Arkansas corporation with its office and principal place of business at Fort Smith, Arkansas. It has never been qualified or licensed to do business in Missouri and has no registered office or agent in Missouri. Plaintiffs claim jurisdiction over defendant was acquired by service of process in Missouri upon defendant on April 1, 1963, by serving Wade H. Littrell "who plaintiffs' attorney advises is agent and salesman for * * * Council Manufacturing Corporation."2
The court found as a fact that Littrell operates his own distributing business in Missouri and that approximately 80% of the products he handles were manufactured by the defendant but that he purchased some goods from other manufacturers. With respect to Littrell's relationship to defendant, the court finds:
221 F.Supp. 111, 111-12.
With respect to other activities of the defendant within Missouri, the court's findings are:
221 F.Supp. 111.
The court further found:
"The record indicates that Council Manufacturing Corporation maintains no office, warehouse, stock of goods, telephone or bank account in the State of Missouri and has no employees or agents in the State." 221 F.Supp. 111, 112.
The court then states the basis of its decision as follows:
221 F. Supp. 111, 112.
Defendant's motion challenging the court's jurisdiction raises lack of jurisdiction upon the basis of Missouri law and upon the violation of federal due process. The court's determination that it has no jurisdiction over the defendant appears to be based upon Missouri law. The cases cited in support of its conclusion are Missouri cases. There is no discussion in the opinion of federal due process.
In Jennings v. McCall Corp., 8 Cir., 320 F.2d 64, we considered a problem strikingly similar to that presented here. We there considered the pertinent Missouri cases cited by the trial court in the present case, including Hayman v. Southern Pacific Co., Mo., 278 S.W.2d 749, and Collar v. Peninsular Gas Co., Mo., 295 S.W.2d 88, and stated:
320 F.2d 64, 72.
In Jennings, we recognized that minimum federal due process standards must be met to confer personal jurisdiction over a foreign corporation. We held that if minimum due process standards are met, state law is controlling upon what constitutes doing business within a state for the purpose of conferring personal jurisdiction.
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