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  "name": "H. A. PARRIS v. H. G. FISCHER & COMPANY",
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      "H. A. PARRIS v. H. G. FISCHER & COMPANY."
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      {
        "text": "DeviN, J.\nIt was conceded that the defendant is a foreign corporation without process agent or property in the State, and that service of process could only be had under the provisions of C. S., 1137, upon the ground that it was \u201cdoing business in this State.\u201d It was found as a fact in the court below that defendant was doing business in the State, and that finding constituted the basis upon which defendant\u2019s motion for dismissal for want of lawful service was denied.\nThere was no request that the court find the supporting facts upon which its conclusion that defendant was doing business in the State was based, and hence it will be presumed that the court found sufficient facts to support its conclusion. Rosser v. Matthews, 217 N. C., 132, 6 S. E. (2d), 849; Hinkle v. Scott, 211 N. C., 680, 191 S. E., 512. If the finding by the court below that defendant was doing business in this State is supported by evidence appearing in the record, the ruling against defendant\u2019s motion must be upheld. Brown v. Coal Co., 208 N. C., 50, 178 S. E., 858. This necessitates an examination of the record to determine if there was evidence of facts sufficient to sustain the ruling.\nIt appears that defendant is engaged in the business of manufacturing and selling electro-surgical medical equipment, including short wave therapeutic machines, and for that purpose maintains \u201cdealer-representatives\u201d in this State. The number and specific territory of these representatives did not appear. One of them is Geo. E. Hatch, who, as such, transacted the business with plaintiff. He sold to the plaintiff one of defendant\u2019s short wave therapeutic machines, and took in part payment an old machine of plaintiff. He also had plaintiff execute a conditional sale contract, as security for the balance of the purchase price, payable to the defendant, and this was signed on behalf of defendant by Mr. Hatch, and accepted by defendant. This contract provided, among other things, that the title to the machine sold should remain in the defendant corporation until the payment in full of the purchase price. Some four months later, the plaintiff having, as defendant contended, failed to make all the payments agreed on, Geo. E. Hatch, acting for and on behalf of the defendant, entered the home of plaintiff, in his absence, and took possession of the machine, under circumstances which gave rise to plaintiff\u2019s action. Thereafter, the defendant, in a letter to plaintiff, advised him of the action taken by Mr. Hatch, and in justification of the seizure of the property said, \u201cThis, of course, is strictly in accordance with our legal rights, as your contract was in default.\u201d Subsequently, defendant again wrote plaintiff about the matter, saying: \u201cWe would be very glad to instruct Mr. Hatch to replace the machine in your office upon receipt of certified check for $56.40, covering the first four installments which are delinquent.\u201d\nIt would seem reasonably clear that this evidence would tend to support the conclusion that in this instance the defendant was doing the business in North Carolina for. which the corporation was created, through its representative, and was thus present in his person. The evidence tends to show that its representative sold defendant\u2019s products to plaintiff, executed for it and in its name conditional sale contract, title to the property being retained by defendant corporation; that on behalf of the defendant he made two visits to plaintiff for the purpose of collecting installments due, and on his last visit undertook collection by repossessing the property; that he was apparently under the control of the defendant \u2014 subject to its instructions \u2014 and that his actions in the premises were ratified and approved by the defendant, as shown by its letters. This conduct on the part of Hatch transcends the functions of a mere factor or commission merchant who distributes the goods of a manufacturer on commission. As was said in R. R. v. Cobb, 190 N. C., 375, 129 S. E., 828: \u201cHe who acts as distributor for another and not merely as distributor of goods manufactured by the other, acts as his agent.\u201d\nThe right of the State to impose, as a condition upon which corporations may be permitted to do business in the State, that they will accept, as sufficient, service of process on a designated person, is well settled. Lunceford v. Assn., 190 N. C., 314, 129 S. E., 805; Anderson v. Fidelity Co., 174 N. C., 417, 93 S. E., 948; Peoples Tob. Co. v. Am. Tob. Co., 246 U. S., 79; International Harvester Co. v. Ky., 234 U. S., 579; Am. Asphalt Roof Corp. v. Shankland, 205 Iowa, 862, 219 N. W., 28; St. Clair v. Cox, 106 U. S., 350.\nThe statute, C. S., 1137, provides that jurisdiction of our courts to entertain suits against foreign corporations, having no property or process agent in the State, may be acquired by service of summons on the Secretary of State, who is thus designated for the purpose, when the corporation is \u201cdoing business in this State.\u201d\nThe meaning of the phrase \u201cdoing business in this State\u201d was considered in an able opinion written for this Court by Winborne, J., in C. T. H. Corp. v. Maxwell, 212 N. C., 803, 195 S. E., 36, where numerous authorities on the subject are cited. While no all-embracing definition of these words as used in the statute has been attempted (Timber Co. v. Ins. Co., 192 N. C., 115, 133 S. E., 424; Peoples Tob. Co. v. Am. Tob. Co., 246 U. S., 79), each case being decided by the Court upon the facts brought before it, the following criteria were suggested in an opinion by Connor, J., in Commercial Trust v. Gaines, 193 N. C., 233, 136 S. E., 609 : \u201cIt has been generally held that a foreign corporation cannot be held to be doing business in a state, and therefore subject to its laws, unless it shall be found as a fact that such corporation has entered the state in which it is alleged to be doing business, and there transacted, by its officers, agents or other persons authorized to act for it, the business in which it is authorized to engage by the state under whose laws it was created and organized. The presence within the state of such officers, agents or other persons, engaged in the transaction of the corporation\u2019s business with citizens of the state, is generally held as determinative of the question as to whether the corporation is doing business in the state.\u201d In Ruark v. Trust Co., 206 N. C., 564, 174 S. E., 441, Stacy, C. J., succinctly states the rule in this way: \u201cThe expression \u2018doing business in this State,\u2019 as used in 0. S., 1137, means engaging in, carrying on or exercising, in this State, some of the things, or some of the functions, for which the corporation was created.\u201d\nThe general rule was laid down in Peoples Tob. Co. v. Am. Tob. Co., 246 U. S., 79, as follows: \u201cThe general rule deducible from all our decisions is that the business must he of such nature and character as to warrant the inference that the corporation has subjected itself to the local jurisdiction, and is by its duly authorized officers or agents present within the State or district where service is attempted.\u201d Consolidated Textile Corp. v. Gregory; 289 U. S., 85.\nIt was said in Fond du Lac. C. & B. Co. v. Henningsen P. Co., 141 Wis., 70: \u201cA corporation ordinarily acts and moves in the person of some individual, and when any individual, officer, or agent is, within the authority committed to him, performing an act of the corporation, the latter must be deemed present physically in the person exercising its powers.\u201d Atkinson v. U. S. Op. Co., 129 Minn., 232. In St. Louis S. W. R. Co. v. Alexander, 227 U. S., 218, it was said: \u201cIn a general way it may be said that the business must be such in character and extent as to warrant the inference that the corporation has subjected itself to the jurisdiction and laws of the district in which it is served.\u201d\nThe conclusion that the evidence appearing in the record in the instant case tends to support the finding that the defendant was doing business in the State is in accord with the general consensus of judicial opinion. International Harvester Co. v. Kentucky, 234 U. S., 579; Penn. L. F. M. Ins. Co. v. Meyer, 197 U. S., 407; Conn. Mutual Accident Co. v. Davis, 213 U. S., 245; St. Louis S. W. R. Co. v. Alexander, 227 U. S., 218; Browning v. Waycross, 233 U. S., 16; Case v. Mills Novelty Co., 193 So., 625; Clement v. Coon, 161 Okl., 216; International Shoe Co. v. Lovejoy, 257 N. W., 576; Grams v. Harvester Co., 105 Wash., 602; Oil Co. v. Baccus, 207 Ala., 75; 101 A. L. R., 126; 60 A. L. R., 994: 23 Am. Jur., 333, et seq.; 20 C. J. S., 150.\nThe defendant, however, contends that, even if it be properly found that in this particular instance defendant corporation transacted, through its representative, the business with the plaintiff of which he now complains, this was a single isolated instance and insufficient to constitute doing business in the State within the meaning of the statute.\nUndoubtedly the rule is that a single act, contract or transaction within the State by a foreign corporation will not, ordinarily, be regarded as doing business therein. 23 Am. Jur., 353; 0. T. H. Gorp. v. Maxwell, supra. The doing of a single act pertaining to a particular transaction will not be considered doing business, as the phrase denotes some degree of continuity. Am. Asphalt Roof Corp. v. Shankland, 205 Iowa, 862; Metal Door & Trim Co. v. Hunt, 170 Okl., 240; Cooper Mfg. Co. v. Ferguson, 113 U. S., 727; 20 Am. Jur., 155; Penn Colleries v. McKeever, 83 N. Y., 98. But this rule does not apply when the evidence permits the inference that the act is done pursuant to a course of business, and indicates the intention to engage in a continuing business in the State, rather than in a single, isolated transaction. Int. Harvester Co. v. Ky., 234 U. S., 579; International Text Book Co. v. Pigg, 217 U. S., 91; Colorado Iron Works v. Sierra Grande Mining Co., 15 Col., 499; Glass Mfg. Co. v. Superior Court, King County, 166 Wash., 41; Moore v. Racine Rubber Co., 194 Ky., 106; Dobson v. Maytag Sales Co., 292 Mich., 107; 23 Am. Jur., 354-355; 20 C. J. S., 166.\nIn International Harvester Co. v. Kentucky, 234 U. S., 579, where it was held that the Harvester Company was doing business in Kentucky when it appeared that its representatives, though limited in authority, were soliciting orders in that state for the sale of its goods to be shipped there, the Court said: \u201cHere was a continuous course of business in the solicitation of orders which were sent to another state, and in response to which the machines of the Harvester Company were delivered in the State of Kentucky. This was a course of business, not a single transaction.\u201d\nHere there is evidence tending to support the finding that the defendant corporation was doing business in the State, making a continuous, not merely casual or incidental, effort to sell its products in this State. Its representative, located in Henderson, was carrying on the business for the defendant and not for himself. The employment of other representatives in the State in like capacity as Geo. E. Hatch for the purpose of selling its products, and carrying on its business, presumably in a similar manner, implies continuity of conduct in that respect, sufficient to afford evidence that the defendant was engaged in business within the State. 60 A. L. R., 994; 20 C. J. S., 155.\nThe decision of this Court in Plott v. Michael, 214 N. C., 665, 200 S. E., 429, was based on different facts from those here appearing. In that case it was held that the presence in the State of a traveling salesman of a foreign corporation, who merely took orders, subject to approval at the home office of the corporation, for goods to be subsequently shipped into the State, did not constitute doing business in the State on the part of the corporation.\nWe conclude that there was evidence appearing in the record to support the finding of the court below that defendant was doing business in this State, and that defendant\u2019s motion to strike out the service of summons under C. S., 1137, was properly denied. The judgment of the Superior Court is\nAffirmed.",
        "type": "majority",
        "author": "DeviN, J."
      }
    ],
    "attorneys": [
      "V. D. StricMand for plaintiff, appellee.",
      "Eric Norfleet for defendant, appellant."
    ],
    "corrections": "",
    "head_matter": "H. A. PARRIS v. H. G. FISCHER & COMPANY.\n(Filed 19 March, 1941.)\n1. Appeal and Error \u00a7 40a: Process \u00a7 61)\u2014\nIn the absence of a request by defendant that the court find the facts supporting its conclusion that defendant was doing business in this State, it will be presumed that the court found facts sufiicient to support its conclusion, and if there is sufficient evidence appearing in the record to support the court\u2019s ruling, the ruling will be sustained.\n2. Process \u00a7 6b \u2014 Evidence held sufficient to support conclusion that defendant was doing business in this State for purpose of service under C. S., 1137.\nDefendant was a nonresident corporation engaged in the business of manufacturing and selling electro-surgical medical equipment. The evidence tended to show that defendant maintained dealer-representatives in this State, that one of them sold a machine to plaintiff under a title retaining conditional sales contract, that he executed the contract for and in the name of the defendant, that defendant accepted the contract, that thereafter the dealer-representative made two visits to plaintiff for the purpose of collecting installments due, and on his last visit undertook collection by repossession of the property, and that defendant wrote letters to plaintiff justifying its agent\u2019s repossession. Held: The evidence discloses that the agent was more than a mere broker or factor, and is sufficient to sustain the conclusion of law by the court that defendant was doing business in this State within the meaning of C. S., 1137, authorizing service of process on the Secretary of State.\n3. Same\u2014\nThe meaning of the phrase \u201cdoing business in this State\u201d as used in C. S., 1137, is not susceptible to an all embracing definition, and each case must be decided upon the particular facts therein appearing, the general criteria being that a foreign corporation is doing business in this State if it transacts in this State the business it was created and authorized to do, through representatives in this State, and thus is present in this State through the person of its representatives.\n4. Same \u2014 Phrase \u201cdoing business in this State\u201d connotes some degree of continuity, but proof that agent did business for defendant and that defendant maintained agents in this State is sufficient.\nWhile the phrase \u201cdoing business in this State\u201d connotes \u2022 some degree of continuity and an isolated instance is insufficient to support service of process under C. S., 1137, evidence that defendant nonresident corporation maintained dealer-representatives in this State, and that in the particular instance in suit the corporation was doing business in this State through its dealer-representative, is held sufficient to support service of process under C. S., 1137, since the fact that it employed dealer-representatives for the purpose of selling its products and carrying on its business, presumably in a similar manner, implies a sufficient continuity of conduct within the purview of the statute.\nAppeal by defendant from Nimocks, Jat October Term, 1940, of NORTHAMPTON.\nAffirmed.\nAction to recover damages for alleged wrongful seizure of certain personal property. The plaintiff is a physician resident in Northampton County, and the defendant is an Illinois corporation engaged in the manufacture and sale of electro-surgical medical equipment.\nPlaintiff attempted to bring defendant into court by service of process on the Secretary of State in accord with the provisions of O. S., 1137. Defendant entered special appearance and moved to strike out the purported service of summons on the ground that defendant was not doing business in this State and had no property therein. The court found as a fact that defendant was doing business in the State, and denied the defendant\u2019s motion.\nIt is alleged in the verified complaint that the property in question, a short wave therapeutic machine, was purchased by plaintiff from defendant through its representative, and payment secured by a conditional sale contract, providing payment in monthly installments, defendant accepting in part payment plaintiff\u2019s own therapeutic machine. Plaintiff alleged that, in consequence of false representations in the sale and defendant\u2019s failure to make adjustment, the violation of his home in the wrongful seizure of this property by defendant\u2019s agent constituted an actionable wrong for which damages were prayed.\nThe following letter from defendant to plaintiff, under date of 3 April, 1940, was offered: \u201cUnder date of March 30th, our dealer representative, Mr. George F. Hatch, of Henderson, wrote us that he had made a second trip to Rich Square to see you but unfortunately did not find you in although he waited over an hour. As he is located quite a distance from you and because of the press of business he has not been able to get into your territory very often lately, when he noticed that your door was left open so that anyone might enter and found that the Short Wave was apparently not being used as it was covered with dust, he decided the best thing to do was to take it back to Henderson with him. This, of course, is strictly in accordance with our legal rights as your contract was in default. However, we are indeed sorry that he was unable to see you personally and demonstrate the machine to your satisfaction so that you might reinstate the contract by bringing it up to date.\u201d\n'Also another letter from defendant to plaintiff, dated 12 April, 1940, was offered: \u201cUnder date of November 16, 1939, you signed a conditional sale contract, covering the purchase of a Model \u2018S\u2019 Short Wave outfit. You agreed by this contract, to pay us $14.10 a month beginning January 1, 1940, for a period of 23 months and a final payment of $17.30 to be paid December 1, 1941. When you signed the contract you acknowledged the outfit to be in perfect working order as represented and you agreed to make the payments. On December 11, 1939, we mailed you a schedule of your payments and we asked you, at that time, to notify us if there were any irregularities. You did not notify us at that time that there were and we naturally assumed that everything was okay. Our Dealer Representative, Mr. Hatch, went to Rich Square on March 30th, which was the second tim\u00e9 he was there, but was unable to see you. Your place of business was wide open and Mr. Hatch removed the Short Wave machine. We would be very glad to instruct Mr. Hatch to replace the machine in your office upon receipt of certified check for $56.40, covering the first four installments, which are delinquent.\u201d\nThe conditional sale contract was offered showing sale of the machine by the defendant to the plaintiff for $401.60, subject to credit of $60.00 (for plaintiff\u2019s own machine), payable in monthly installments. This contract provided that the title to the property should remain in the defendant corporation until the payment in full of the purchase price, and was signed by the plaintiff, and on behalf of the defendant by Geo. E. Hatch, \u201cdealer representative.\u201d At the time of repossessing the machine' defendant\u2019s representative left a note for the plaintiff in which he said, \u201cWe have taken out the machine,\u201d and signed it as representing the defendant.\nDefendant offered affidavits of its treasurer and of Geo. F. Hatch, setting out its method of doing business through dealer-representatives in North Carolina, who were limited in authority to the sale of defendant\u2019s products on a discount basis, offers to purchase to be accepted by defendant at its home office.\nThe defendant excepted to the ruling of the court below in denying its motion to strike out the service of summons, and appealed.\nV. D. StricMand for plaintiff, appellee.\nEric Norfleet for defendant, appellant."
  },
  "file_name": "0292-01",
  "first_page_order": 334,
  "last_page_order": 341
}
