State ex rel. West Virginia Truck Stop, Inc. v. Belcher, 13221

• Decision Date: 02 November 1972
• Docket Number: No. 13221,13221
• Citation: 192 S.E.2d 229,156 W.Va. 183
• Court: West Virginia Supreme Court
• Parties: STATE ex rel. WEST VIRGINIA TRUCK STOP, INC., a corporation, v. W. H. BELCHER, Judge, Common Pleas Court of Kanawha County, Division II and Kanawha Valley Oil Company, a corporation.

Page 229

192 S.E.2d 229

156 W.Va. 183

STATE ex rel. WEST VIRGINIA TRUCK STOP, INC., a corporation, v. W. H. BELCHER, Judge, Common Pleas Court of Kanawha County Division II and Kanawha Valley Oil Company, a corporation.

No. 13221.

Supreme Court of Appeals of West Virginia.

Submitted Sept. 6, 1972.

Decided Oct. 10, 1972.

Dissenting Opinion Nov. 2, 1972.

Syllabus by the Court

1. Where a civil action is instituted by a domestic corporation, R.C.P. 4(c) precludes service of original process by a full- time employee of such corporation during his regular employment hours, inasmuch as during such time he is acting for his corporate employer, a party to the action.

2. A contract which calls for performance within this State may be attacked by counterclaim under R.C.P. 13 on the ground that said contract is in unreasonable restraint of trade, since such contract is void at common law because it is contrary to public policy.

Lewis, Ciccarello, Masinter & Friedberg, Martin J. Glasser, Charleston, for relator.

Campbell, Love, Woodroe & Kizer, Charles M. Love, Jr., Charles E. Barnett, Charleston, for respondent Kanawha Valley Oil Co. CARRIGAN, Judge:

This is an original proceeding instituted in this Court whereby West Virginia Truck Stop, Inc., seeks a writ of prohibition against W. H. Belcher, Judge of the Common Pleas Court of Kanawha County, West Virginia, Division II and Kanawha Valley Oil Company, a corporation.

Both relator, hereinafter referred to as Truck Stop, and respondent, Kanawha Valley Oil Company, hereinafter referred to as Oil Company, are West Virginia corporations. Truck Stop maintains and operates three truck fueling centers from which it sells to over-the-road vehicles, mainly tractor-trailer vehicles, diesel fuel and other petroleum products. The property upon which these centers is maintained is owned by Oil Company and are leased to Truck Stop. Oil Company is a distributor of diesel fuel which it obtains for re-sale from across state lines. The lease between Truck Stop and Oil Company provides that Truck Stop purchase and sell the brand of gasoline, diesel fuel and other petroleum products designated by Oil Company.

On May 4, 1972, Truck Stop lodged with the Clerk of the U.S. District Court for the Southern District of West Virginia, a complaint alleging its lease with Oil Company was in violation of the Sherman and Clayton Anti-Trust Acts for the reason that Oil Company had required the purchase of fuel at prices which were not competitive with other suppliers and had set resale prices.

On May 5, 1972, Oil Company filed a suit in Common Pleas Court of Kanawha County seeking forfeiture of its lease with Truck Stop for its failure to purchase fuel from Oil Company allegedly in violation of the lease agreement. A copy of the summons and complaint in this action and a notice of motion were served on Truck Stop by one H. D. McGowen, a full-time employee of Oil Company on May 8, 1972, such service being performed during his regular working hours.

On May 10, 1972, Oil Company moved the Common Pleas Court for an order restraining Truck Stop from purchasing, stocking or selling on the leased premises fuel purchased from any other source than Oil Company. In opposition to said motion Truck Stop made a special appearance objecting to service of process on the ground that it was in violation of R.C.P. 4(c). Truck Stop further resisted the motion on the ground that a violation of the Federal Anti-Trust Acts was within the exclusive jurisdiction of the federal courts and to grant relief sought by Oil Company would require Truck Stop to comply with a contract which violated Federal Anti-Trust Acts.

On May 25, 1972, Truck Stop filed a notice of bona fide defense, and on June 7, 1972, filed a motion to dismiss the common pleas proceeding on the grounds of improper service of process and inability to file a counterclaim by reason of exclusive federal jurisdiction of anti-trust violations.

In resisting the motion to dismiss, Oil Company contended that Truck Stop did not comply with R.C.P. 12 by its motion to dismiss; that its service of process was by a credible person and that R.C.P. 13 did not require Truck Stop to raise by counterclaim its reliance upon violation of the Federal Anti-Trust Acts for that claim was then pending in another action, i.e., the proceeding in the U.S. District Court for the Southern District of West Virginia.

Following hearing in the Common Pleas Court, the Judge thereof ruled that service of process by an employee of Oil Company did not violate R.C.P. 4(c), and further held that R.C.P. 13 required Truck Stop to set forth as a counterclaim in the common pleas action Oil Company's alleged violation of the Federal Anti-Trust Acts, and granted the injunction prayed for against Truck Stop.

Truck Stop here contends that Oil Company seeks by its Common Pleas Court action to regain immediate possession of its property held under lease by Truck Stop, which relief, it granted, will cause Truck Stop irreparable harm.

Truck Stop bases its petition for writ of prohibition on the proposition that the Common Pleas Court of Kanawha County has no jurisdiction or has exceeded its jurisdiction for the reasons: (1) Service of process was by a party to the action, i.e., the agent employee of Oil Company and thus in violation of R.C.P. 4(c), and (2) its claim for violation of the Federal Anti-Trust Acts is within the exclusive jurisdiction of the federal courts and cannot be raised by compulsory counterclaim in the Common Pleas Court.

The awarding of a writ of prohibition in this State is governed by Article 1, Chapter 53, Code of West Virginia, 1931. A court may have jurisdiction of the subject matter of an action and yet lack jurisdiction of the parties and thus exceed its legitimate powers by proceeding to hear such action. Morris v. Calhoun, 119 W.Va. 603, 195 S.E. 341 (1938); West Virginia Secondary School Activities Commission v. Wagner, Judge, 143 W.Va. 508, 102 S.E.2d 901 (1958). To hear and determine an action the court must have jurisdiction of the parties. State ex rel. Smith v. Bosworth, Judge, 145 W.Va. 753, 117 S.E.2d 610 (1960). Thus we believe that prohibition is the proper remedy to test the matter of jurisdiction raised in this proceeding.

The first question to be resolved is whether the Common Pleas Court acquired jurisdiction of West Virginia Truck Stop, Inc., by the service of the summons and complaint by H. D. McGowen, during his regular working hours, he being a full-time employee of Kanawha Valley Oil Company, the plaintiff in the action in the Common Pleas Court. This involves the application and interpretation of R.C.P. 4, and particularly (c) thereof, which reads as follows:

'Rule 4. PROCESS.

'(c) By Whom Served. Service of all process shall be made with due diligence by the sheriff or by any credible person who is not a party, except that an attorney for a party shall not serve original process.'

The case of Hansford v. Tate, 61 W.Va. 207, 56 S.E. 372 (1907), is authority for the proposition that where a sheriff is a party, process served by his deputy is voidable. However, that case was decided prior to the promulgation of our Rules of Civil Procedure, and the question here presented has not been passed on in this State since the adoption of said Rules. Because of the various statutes or rules of other states their decisions on the question of an agent acting, where his principal is disqualified to serve process, are not very enlightening.

The word 'party' is sometimes held to be employed in its technical sense, and therefore an agent of the plaintiff, himself not a party of record, was competent to serve process. Plano Mfg. Co. v. Murphy, 16 S.D. 380, 92 N.W. 1072 (1902). To the contrary,...