STEVENS-DAVIS COMPANY
v.
OTTO F. STOCK

Fla. | 1940-02-09
Terrell, C. J., and Buford and Chapman, J. J., concur., Thomas, J., agrees to conclusion., Wiii,tfield and Brown not participating as authorized by Section 4687, Compiled General Laws of 1927, and Rule 21-A of the Rules of this Court.
141 Fla. 714 Florida Supreme Court (1940) Caution
Also reported at: 193 So. 745
Cited by 25 cases

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Synopsis

The Stevens-Davis Company, a foreign corporation, sued Otto F. Stock for breach of contract. The trial court dismissed the case because the company had not complied with state statutes for foreign corporations doing business in Florida. The appellate court reversed, holding that the transaction was interstate commerce and thus the company was not required to comply with the state statutes to sue.


Holding

No, a foreign corporation engaged in interstate commerce is not required to comply with state statutes for foreign corporations doing business in the state as a condition precedent to instituting legal proceedings in state court.


Key Quotes

“The transaction between Stock and plaintiff being an interstate one, it is not necessary that the corporation comply with Chapter 14677, Acts of 1931, and Chapter 15726, Acts of 1931, Extra Session, as a condition precedent to instituting legal proceedings in this State.”

This quote establishes the court's central holding regarding the interstate nature of the transaction and its impact on the requirement for statutory compliance.

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Facts & Procedural History

Stevens-Davis Company sued Otto F. Stock for failing to make payments on a contract for goods. After a default judgment was entered against Stock, the…

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Opinion of the Court
Per Curiam.

Per Curiam.

Plaintiff in error, plaintiff below, brought suit against Otto F. Stock on a contract whereby defendant agreed to purchase “Illustrated Route Selling.” It was alleged in the declaration that payments were to have been on a monthly basis and that defendant had failed to pay a single installment, although all goods had been delivered.

Judgment by default for failure to appear was obtained against defendant on August 2, 1938. On September 5, defendant filed motion to vacate default judgment alleging that by pure mistake and misunderstanding of counsel and their stenographer who failed to file their appearance, the default was allowed. The motion was granted with only very short notice being given to plaintiff of the hearing thereon.

The opening of a default judgment is usually in the sound discretion of the trial judge, and where it appears that such discretion has not been abused, and where Section 4287 (2621) C. G. L. has been substantially complied with, this Court will not interfere. Benedict v. W. T. Hadlow Co., 52 Fla. 188, 42. So. 239; State Bank of Eau Gallie v. Raymond, et ux., 103 Fla. 649, 138 So. 40.

Defendant filed motion to dismiss alleging that plaintiff was a foreign corporation doing business in this State without first having complied with the provisions of Chapter 14677, Acts of 1931, as amended by Chapter 15726, 'Acts of 1931, Extra Session, providing, inter alia, for the payment to the State of a license tax before the corporation may engage in business or institute legal proceedings in this *716State. The motion was granted, and judgment dismissing the cause entered and the propriety oí the court’s ruling thereon is now being questioned here.

It appears from the declaration that the domicile of plaintiff corporation was in Illinois; that the offer was made by plaintiff through a traveling representative, but the contract did not become final and binding until accepted by plaintiff in Chicago. Plaintiff contends that inasmuch as it is a foreign corporation engaged in interstate commerce, compliance with the statute is not a condition precedent to maintaining suit in this State. In considering an early statute to the same effect as the ones now under discussion, this Court, in Circular Advertising Co. v. American Mercantile Co., 66 Fla. 96, 63 So. 3, where there was a foreign corporation contracting with persons in this State to print and deliver circular advertisements to them in small quantities, held that “the State may not, in any form or under any guise, directly burden interstate commerce or the rights proximately flowing therefrom.” See also Mergenthaler Linotype Co. v. Gore, 118 Fla. 889, 160 So. 481, where this Court, in holding that a foreign corporation unlicensed to do business in this State, executing a conditional sales agreement providing for shipment of property from another State into this State was entitled to replevy property on default, where interstate commerce was involved, said:

“The controlling law does not require foreign corporations to qualify to do business in the State before it can enforce in the courts of the State its rights under a contract involving an interstate sale and delivery of personal property.”

The transaction between Stock and plaintiff being an interstate one, it is not necessary that the corporation comply *717with Chapter 14677, Acts of 1931, and Chapter 15726, Acts of 1931, Extra Session, as a condition precedent to instituting legal proceedings in this State.

Defendant contends that in order for plaintiff to maintain the suit it is necessary that it allege in the declaration the reason for non-compliance with the statute. This same question was raised in Farrell v. Forrest Inv. Co., 73 Fla. 191, 74 Sou. 216, 1 A. L. R. 25, and it was there held that where the defendant desires to raise the question of a foreign corporation’s right to maintain a suit in this State, the defense should be specifically made, and it is therefore not necessary that plaintiff should set forth its reasons for non-compliance in his declaration.

The judgment is reversed and the cause remanded to- the circuit court for further proceedings in accordance with this opinion.

So ordered.

Terrell, C. J., and Buford and Chapman, J. J., concur.

Thomas, J., agrees to conclusion.

Wiii,tfield and Brown not participating as authorized by Section 4687, Compiled General Laws of 1927, and Rule 21-A of the Rules of this Court.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • N. Shore Hosp., Inc. v. Barber, 143 So. 2d 849 (Fla. 1962)
    …vitably thwart the liberal policy of this court as stated in the two decisions last cited. Regarding the negligence of the hospital staff in misplacing the petitioner’s copy of the complaint, it was held in Stevens-Davis Co. v. Stock, 141 Fla. 714, 193 So. 745, that the trial court had not abused its discretion in granting a motion to vacate a default judgment where the failure to answer was due to “ * * * pure mistake and misunderstanding of counsel and their stenographer.” In support of its holding on t…
  • Crystal Lake Golf Course, Inc. v. Kalin, 252 So. 2d 379 (Fla. 4th DCA 1971)
    …such a procedure so as to permit determination of the controversy upon the merits. North Shore Hospital, Inc. v. Barber, supra [Fla. 143 So. 2d 849]; Coggin v. Barfield, 1942, 150 Fla. 551, 8 So. 2d 9; Stevens-Davis Co. v. Stock, 1940, 141 Fla. 714, 193 So. 745.” We recognize that we are dealing with a summary procedure as prescribed by Section 51.011, supra; but we equally recognize that we are dealing with the rights of parties to the use, enjoyment and possession of property which ought not to be summa…
  • Cnty. Nat'l Bank OF N. Miami Beach v. Sheridan, Inc., 403 So. 2d 502 (Fla. 4th DCA 1981)
    …al or secretarial error has also been held to constitute excusable neglect. Associated Medical Institutions, Inc. v. Imperatori, 338 So. 2d 74 (Fla. 3d DCA 1976); North Shore Hospital, Inc. v. Barber, supra; Stevens-Davis Co. v. Stock, 141 Fla. 714, 193 So. 745 (1940); Sterling Drug, Inc. v. Wright, 342 So. 2d 503 (Fla.1977). Of course, each of these cases turn upon its own complete set of facts, but we believe they adequately demonstrate the point that an unintentional mistake such as the one involved her…

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