MASON ET AL.
v.
MASON PRODUCTS CO.
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The Florida Supreme Court held that service of process on a part-time salesman who took orders in his spare time for a foreign corporation was invalid because the salesman lacked the relationship or authority necessary to bind the corporation. The court found no evidence that the salesman was a true business agent, and held that upholding such service would violate due process.
Service of process on the salesman was invalid because the relationship between the salesman and the corporation was insufficient to create a legal or moral duty on the salesman to properly handle summons as the corporation's agent. The court therefore found no need to decide whether the corporation was doing business in Florida.
“it is fundamental that due process requires notice and a fair opportunity to be heard, but this principle has been circumscribed by the admonition that such contracts must not offend traditional notions of fair play and substantial justice”
The court's statement of the constitutional principle governing service of process and jurisdiction over foreign corporations
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Join FLexlaw to unlock all legal intelligenceMason Products Co., a foreign corporation, distributed catalogues and instructed persons on how to take orders for its products. A salesman who was re…
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DREW, Justice.
This appeal presents two questions for determination. The first is whether under the facts disclosed by the record the foreign corporation defendant, hereafter called appellee, was “doing business” in the State of Florida to the extent which would make it subject to the jurisdiction of the Florida courts. The second question is whether service of process on a person who took orders in his spare time for the products of the foreign corporation, was sufficient to bind the corporation under Section 47.17, Fla.Stats.1951, F.S.A. Section 47.16 thereof also is cited in appellants’ brief. But that Section prescribes a mode of substituted service upon the Secretary of State binding upon foreign corporations and others under specified conditions. The service contested here was made upon a person “As Business Agent” of defendant; therefore the said Section, 47.16, Fla.Stats.1951, F.S.A., is not applicable to this case.
We have carefully examined the record and facts disclosed therein. The salesman upon whom process was served was regularly employed by a stranger to appellee. One day the salesman observed an advertisement of appellee and answered it. Appellee sent him a catalogue and a form letter and booklet telling him about appel-lee’s product and how to place orders. His compensation was the down payment set forth in the catalogue which, in the event of a sale, he retained. The order was then sent to appellee in a foreign state, was subject to its acceptance, and if accepted the product was shipped to the customer C. O. D. The saleman knew nothing about the appellee, had no contract with it, and outside of members of his family had taken orders from only two persons, one of whom was appellant.
The record shows no relationship of the character which would create either a legal or moral duty on the part of the salesman to report and properly handle a summons served on him as agent of the appellee. To hold that under such circumstances service on such person is sufficient to give the courts of this state jurisdiction to enter a judgment against the appellee offends every principle of justice and due process. After all, it is fundamental that due process requires notice and a fair opportunity to be heard, but this principle has been circumscribed by the admonition that such contracts must not offend traditional notions of fair play and substantial justice. International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, 161 A.L.R. 1057. We think the situation here falls squarely in the latter category and that the service on the salesman was invalid.
Appellants rely heavily on George A. Hormel & Co. v. Ackman, 117 Fla. 419, 158 So. 171, 172, but the facts there presented an entirely different picture. The lower court in that case found that the facts established that the person served was the corporation’s “business agent, resident in the State of Florida”. The order of the lower court in the case now under review was to the contrary and we think the facts clearly support the conclusion.
Each case of this kind must rest on its own bottom for the simple reason that whether service is valid depends on what the facts are. There is no way to lay down a general principle applicable to all cases. See International Shoe Co. v. Staite of Washington, supra; Atlantic & Gulf Grocery Co. v. Aetna Mills Co., 77 Fla. 113, 80 So. 738; and see Note (1938) 113 A.L.R. 9, containing an exhaustive annotation on the subject of who may be served to bind a foreign corporation. See also the recent case of State ex rel. Weber v. Register, Fla., 67 So. 2d 619, discussing what is “doing business” in a State.
Having determined that the relationship between the salesman and the appellee was insufficient to form a basis for valid service of process it follows that there is no necessity of passing on the first question posed by appellants.
The judgment appealed from is affirmed.
ROBERTS, C. J., and THOMAS and HOBSON, JJ., concur.
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Cited By (16 total)
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WM. E. Strasser Constr. Corp. v. Linn, 97 So. 2d 458 (Fla. 1957)…by the record in the particular case. While certain general principles may be said to prevail the application of these principles will be governed by the factual situation presented by a particular record. Mason v. Mason Products Company, Fla.1953, 67 So. 2d 762. Inasmuch as no testimony was taken and the matter was disposed of on a motion to dismiss precipitated by the special appearance, we must look to the allegations of the amended complaint with supporting exhibits in order to ascertain whether the ap…
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Zirin v. Charles Pfizer & Co., Inc., 128 So. 2d 594 (Fla. 1961)…ess may be brought before the courts of this State in a proper case by serving process — so far as foreign corporations are concerned — upon any agent of such corporation transacting business for it in Florida. Mason v. Mason Products Co., Fla.1953, 67 So. 2d 762, 763 was concerned with Section 47.17. In that case we held that the individual upon whom service was made was not the business agent within the contemplation of Section 47.17, Florida Statutes 1951, F.S.A., and that the activities of such person so…
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Fawcett Publ'ns, Inc. v. Rand, 144 So. 2d 512 (Fla. 3d DCA 1962)…. v. Linn, Fla.1957, 97 So. 2d 458; Rorick v. Stilwell, 101 Fla. 4, 133 So. 609. Each case must be resolved on the basis of the facts revealed by the record of the particular case. Toffel v. Baugher, supra; Mason v. Mason Products Company, Fla.1953, 67 So. 2d 762. In order to authorize service under § 47.16(1), supra, upon the Secretary of State as provided by § 47.30, the party attempting to perfect such service must demonstrate either (1) that the foreign corporation has some degree of control over the pe…
Previewing 3 of 16 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Int'l Shoe Co. v. State OF Wash., 326 U.S. 310 (U.S. 1945)
- State ex rel. Weber et ux. v. Register, 67 So. 2d 619 (Fla. 1953)
- George A. Hormel & Co. v. Ackman, 117 Fla. 419 (Fla. 1934)
- Atl. & Gulf Grocery Co. v. The Aetna Mills Co., 77 Fla. 113 (Fla. 1919)