EARLE B. ALLISON
v.
HANDY ANDY COMMUNITY STORES

Fla. | 1934-09-21
Whitfield, P. J., and Buford, J., concur., Davis, C. J., and Terrell, J., concur in the opinion and judgment.
116 Fla. 574 Florida Supreme Court (1934) Positive Treatment
Also reported at: 156 So. 521
Cited by 2 cases

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Synopsis

In this appeal, the Florida Supreme Court affirmed the chancellor's orders allowing an amended bill of complaint and denying a motion to dismiss in an equity action. The amended bill alleged that a defendant obtained a default judgment against the complainant corporation through fraudulent service of process on a person no longer associated with the corporation, when the defendant knew proper service could have been made at the corporation's established office.


Holding

The Court held that the amended bill adequately states a cause of action for equity jurisdiction. The bill sufficiently alleges fraud by showing the defendant obtained judgment against the corporation through improper service on a non-officer while knowing proper service was available at the corporation's established office, and while knowing the corporation had no knowledge of the suit or opportunity to defend itself.


Key Quotes

“the amended bill supplies the deficiencies in some of the allegations of the original bill, so as to bring it within the principles laid down by this Court in Edenfield v. Sayre”

Establishes that the amended bill cured deficiencies and met the legal standard for sufficiency under established precedent

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Facts & Procedural History

Allison (complainant corporation) operated twelve stores in Miami and maintained an office for receiving service of process. The defendant obtained a …

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Opinion of the Court
Brown, J.

Brown, J.

When this case was before this Court on the first appeal, we held that the court below was in error in overruling the demurrer to the bill of complaint and in refusing to dissolve the temporaray injunction, for the reasons stated in the opinion, and the order of the lower court was merely reversed, without directions. Allison v. Handy-Andy Community Stores, Inc., 106 Fla. 274, 143 So. 263. When the mandate of this Court went down, the chancellor made an appropriate order sustaining the demurrer and dissolving the injunction. The chancellor also denied a motion of the complainant to be allowed to file an amended bill of complaint on the ground that it presented no new equity. As to this latter ruling, the complainant filed a motion for rehearing, which was granted, with the result that the chancellor found that the amended bill did contain equity and granted leave to- file it. The sufficiency of the amended bill was then attacked by appellant by motion to dismiss, which *575motion was denied. From these two orders this appeal was taken.

We find no error in these orders. The amended bill supplies the deficiencies in some of the allegations of the original bill, so as to/ bring it within the principles laid down by this Court in Edenfield v. Sayre, 81 Fla. 367, 88 So. 607.

The bill alleges that the purported officer of the corporation, complainant in the bill, upon whom the return of the process served showed that the summons had been served in the action at law, was not an officer or agent of the corporation, his connection with the corporation having been severed several months before, and that the complainant corporation had no knowledge of the suit until some weeks after the judgment by default and the' final judgment had been rendered against it in the law action and the term of court had expired; that the defendant in the equity suit, who was plaintiff in the law action, when he obtained the default judgment, and afterwards the final judgment, knew that no lawful service had been obtained upon the defendant in said law action, and that the process server, a Notary Public, had also been advised to that effect when he made the service upon such purported officer. The contention of the appellant, therefore, that the amended bill does not charge fraud is not well founded, as in the allegation of the amended bill; it appears that the defendant, with knowledge that no service had been perfected upon complainant corporation, wrongfully proceeded to judgment against the complainant, who had no knowledge of the pendency of the case against it. It also appears that the complainant was at the time operating some twelve stores in the City of Miami and maintained an office in accordance with the requirements of law for the purpose of accepting service of process and had manager^ and agents upon whom service could have been made, whereas the service as made was upon a person who *576was neither an officer, agent or employee of the complainant corporation, and that all of such facts were known, or could have been known, by the defendant, appellant here, by the exercise of due diligence. The bill also alleges facts indicating that the complainant had a meritorious defense to the action at law which it could have no doubt successfully asserted if it had been given its day in court.

The bill as amended further alleges that complainant is willing and desires to promptly test the validity of its' said defense to the original common law action, and to appear in said cause and plead therein, and to abide by the result thereof, under such terms as the court may require.

The chancellor was well advised in permitting the filing of the amended, bill and in overruling the motion to dismiss. See also Rentz v. Granger & Lewis, 54 Fla. 445, 60 So. 221, and Braun v. Quinn (Neb.) 39 A. L. R., 411, 199 N. W. 828; and note in 38 A. L. R. 404-428. The orders appealed from are accordingly affirmed.

Affirmed.

Whitfield, P. J., and Buford, J., concur.

Davis, C. J., and Terrell, J., concur in the opinion and judgment.


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Citator

Cited By

  • Holiday Ranch, Inc. v. Roudabush, 171 So. 2d 558 (Fla. 2d DCA 1965)
    …41, 197 S.C. 129, 14 S.E. 2d 628; Thompson v. Ford Motor Co., 1942, 200 S.C. 393, 21 S.E. 2d 34; 23 Am.Jur., Foreign Corporations, § 523; 20 C.J.S. Corporations § 1942, p. 208.” In the case of Allison v. Handy-Andy Community Stores, Inc., Fla.1934, 156 So. 521, a case factually similar to the instant case, but arising out of an original “bill in equity,” the trial court was affirmed in denying the motion to dismiss. Either an original suit or a motion to set aside, as here, are proper remedies to test the…

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