JAMES LAKE, APPELLANT,
v.
THE LUCAYAN BEACH HOTEL COMPANY, LIMITED, A BAHAMIAN CORPORATION, APPELLEE

Fla. 3d DCA | 1965-02-23
No. 64-1009
Before TILLMAN PEARSON, PIOR-TON and HENDRY, JJ.
172 So. 2d 260 Florida District Court of Appeal, Third District (1965)

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Synopsis

A Florida appellate court reversed an order quashing service of process against a Bahamian hotel corporation, holding that the defendant's advertising, entertainment of travel agents, and maintenance of a business office in Florida constituted "engaging in or carrying on a business" sufficient to subject it to Florida's substituted service of process statute.


Holding

The court held that the defendant's activities in Florida—including extensive advertising through a hired firm, entertainment of travel agents at a maintained apartment, and operation of a business office—constituted actual business activity in the state that went beyond mere solicitation of business, thereby subjecting the foreign corporation to Florida's substituted service of process.


Key Quotes

“The determinative question is whether the appellee was, "engaging in, or carrying on a business or business venture in the state," within the meaning of § 47.16(1) Fla. Stat., F.S.A. This phrase has been given a broad application by the Supreme Court of Florida.”

Establishes the legal standard for subjecting foreign corporations to substituted service of process in Florida.

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Facts & Procedural History

The Lucayan Beach Hotel Company, a Bahamian corporation, owned and operated the Lucayan Beach Hotel in the Bahamas. In South Florida, the company empl…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

This interlocutory appeal is from an order quashing service of process in a common-law suit. The attempted service was pursuant to § 47.16 Fla.Stat., F.S.A. and § 47.30 Fla.Stat., F.S.A.

The complaint is based upon an alleged breach of an employment contract. The defendant, appellee, is a Bahamian corporation with its principle place of business in Freeport, Grand Bahama. The business of the defendant is the ownership and operation of the Lucayan Beach Hotel in the Bahamas.

Discovery disclosed that in South Florida the defendant utilized the services of an advertising firm which carried on an extensive advertising program. The defendant maintained an apartment in Miami Beach where it entertained travel agents for the purpose of producing business through their offices. It further maintained an office in Palm Beach, Florida to which general business correspondence could be addressed and would be answered. No further use of this office was established.

The determinative question is whether the appellee was, “engaging] in, or carrying] on a business or business venture in the state,” within the meaning of § 47.16(1) Fla. Stat., F.S.A. This phrase has been given a broad application by the Supreme Court of Florida. See State ex rel. Weber v. Register, Fla.1953, 67 So.2d 619. This construction has been followed by the District Courts of Appeal. See Oxby v. Zmustowski, Fla.App.1961, 128 So.2d 186; Continental Copper & Steel Industries v. “Red” Cornelius, Fla.App.1958, 104 So.2d 40; Woodring v. Crown Engineering Co., Fla.App.1962, 141 So.2d 816; Steel Joist Institute, Inc. v. J. H. Mann III, Inc., Fla.App.1965, 171 So.2d 625 [opinion filed 1/22/65.]

It is true that the mere solicitation of business is not sufficient to subject a foreign corporation to substituted service of process. Green v. Chicago Burlington and Quincy R. R., 205 U.S. 530, 27 S.Ct. 595, 51 L.Ed. 916. In accord MacInnes v. Fontainebleau Hotel Corporation, 257 F.2d 832 (2nd Cir.1958). However, we hold that this record goes beyond the mere solicitation of business through an agent and shows actual business activity carried on in this State even though that business *262was mainly directed toward the procurement of customers for its hotel. Because of this fact this case is within the ambit of the cases first cited. Accordingly, the order quashing service is reversed.

Reversed.

HORTON, Judge

(dissenting).

I respectfully dissent from the majority holding in this case. See MacInnes v. Fontainebleau Hotel Corporation, C.A. 2 (1958) 257 F.2d 832.

Dissent
HORTON, Judge

HORTON, Judge

(dissenting).

I respectfully dissent from the majority holding in this case. See MacInnes v. Fontainebleau Hotel Corporation, C.A. 2 (1958) 257 F. 2d 832.


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