Executive Air Services, Inc. v. Beech Aircraft Corporation
| Decision Date | 01 June 1966 |
| Docket Number | Civ. No. 522-65. |
| Citation | 254 F. Supp. 415 |
| Parties | EXECUTIVE AIR SERVICES, INC., Plaintiff, v. BEECH AIRCRAFT CORPORATION, Defendant. |
| Court | U.S. District Court — District of Puerto Rico |
Francisco M. Susoni Arecibo, Martin Almodóvar Acevedo, Felipe Benicio Sánchez, San Juan, P. R., for plaintiff.
Hartzell, Fernández & Novas, San Juan, P. R., for defendant.
This case is now before this Court on motion by defendant to quash service of summons and to dismiss for lack of jurisdiction over the person of the defendant. The parties having been heard and the briefs submitted having been read, the Court being otherwise fully apprised of the issues at bar, we are ready to rule on this matter.
The controversy herein engaged was commenced in the Superior Court part of the General Court of Justice of the Commonwealth of Puerto Rico in the San Juan Section. It was removed to this Court pursuant to defendant's petition under 48 U.S.C.A. § 863, 28 U.S.C.A. § 1441 and 28 U.S.C.A. § 1332.
The defendant, Beech Aircraft Corporation (hereinafter referred to as defendant) is a juridical person as being incorporated under the laws of the State of Delaware. Its principal place of business is at Wichita, Kansas and it maintains no business office within the jurisdiction of the Commonwealth of Puerto Rico. Defendant itself is engaged in the manufacture, distribution and sale of different models of airplanes, together with parts and accessories therefor.
Plaintiff alleges that on February 16th, 1962 it entered into a contractual relationship with defendant, whereby plaintiff was to distribute defendant's product within the jurisdiction of Puerto Rico. Plaintiff further alleges that said contractual relationship was unilaterally terminated by defendant without just cause and in violation of the laws of Puerto Rico. With these allegations, plaintiff instituted suit in the Superior Court of Puerto Rico on September 22, 1965 and attempted to serve process on defendant pursuant to Rule 4.5 of the Rules of Civil Procedure of the Commonwealth of Puerto Rico.
On October 28, 1965, plaintiff moved in the Superior Court of San Juan for service of process through the Secretary of State of Puerto Rico, pursuant to Rule 4.7 of the Rules of Civil Procedure.
The motion was granted and service was made upon the Secretary of State of Puerto Rico on October 28, 1965, and a copy was sent to defendant by registered mail, receipt of which was acknowledged.
The controversy was removed to the United States District Court for the District of Puerto Rico on December 13, 1965.
Defendant objects to service of process in the manner above mentioned on two main grounds: (1) that defendant is not doing business in Puerto Rico within the meaning of Rule 4.7; and, (2) that Rule 4.7 was not applicable to defendant in its amended form since the amendment was enacted on June 28, 1965 after the occurrence of the alleged facts which are presented as grounds for the action at bar. En passant, defendant raises the possibility of the unconstitutionality of 10 L.P.R.A. § 278. We find it unnecessary to go into this question at this time as it refers to the question of the alleged contract and not to the question of the sufficiency of process.
Latu Sensu, the term "judicial process" includes within its meaning all of the acts of the Court, from the commencement of an action until its final adjudication. In a narrower sense, process is the manner through which a defendant is brought before the bar to answer a complaint filed against him. "Service of process" includes two very distinct but indispensable ends: the notification of the action to the defendant so he may defend himself; and the acquisition of jurisdiction over the person of the defendant. The former point is not at issue; it is precisely the latter which is.
To obtain jurisdiction over a juridical person in the manner foreseen in Rule 4.7 of the Rules of Civil Procedure of Puerto Rico, it is enough that that person have the minimal contacts in Puerto Rico envisaged by the Supreme Court of the United States in International Shoe Co. v. State of Washington, (1945) 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, and McGee v. International Life Insurance Co., (1957) 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223.
From the contract, here a bone of contention, it appears that the distributorship agreement provides for the furnishing of price schedules, discounts and other terms of purchase or airplanes, parts and accessories by defendant to its distributor. Defendant was to supply the purchase order forms which...
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Colon v. Gulf Trading Co.
...in Puerto Rico, contacts were the establishment of the business relationship by the contract); Executive Air Services, Inc. v. Beech Aircraft Corporation, 254 F.Supp. 415 (D.P.R.1966) (breach of Law 75 contract, contacts were the establishment of the contractual relationship with Puerto Ric......
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Eddie Dassin, Inc. v. Darlene Knitwear, Inc.
...has interpreted that Rule several times. See Martinez v. Karageorgis, 235 F.Supp. 1012 (D.C.P.R.1963); Executive Air Services, Inc. v. Beech Aircraft Corp., 254 F.Supp. 415 (D.C.P.R.1966); La Electronica, Inc. v. Electric Storage Battery Co., 260 F.Supp. 915 (D.C.P.R.1966); Caribbean Sales ......
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Eddie Dassin, Inc. v. Darlene Knitwear, Inc.
...interpreted that Rule several times. See Martinez v. Karageorgis, 235 F.Supp. 1012 (D.C.P.R. 1964); Executive Air Services, Inc. v. Beech Aircraft Corp., 254 F.Supp. 415 (D.C.P.R.1966); La Electronica, Inc. v. Electric Storage Battery Co., 260 F. Supp. 915 (D.C.P.R.1966); Caribbean Sales As......
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San Juan Hotel Corporation v. Lefkowitz, Civ. 411-67.
...permissible under the Constitution, limited only by the requirements of due process. In Executive Air Services, Inc. v. Beech Aircraft Corporation, 254 F.Supp. 415, at p. 417 (D.C.P.R. 1966), this Court stated as "To obtain jurisdiction over a juridical person in the manner foreseen in Rule......