CHASE MANHATTAN BANK, N.A., ET AL., APPELLANTS,
v.
BANCO DEL ATLANTICO, F.A., APPELLEES

Fla. 3d DCA | 1977-03-15
No. 76-1751
Before HENDRY, C. J., and PEARSON and HUBBART, JJ.
343 So. 2d 936 Florida District Court of Appeal, Third District (1977) Positive Treatment
Cited by 17 cases

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Holding

Substituted service of process on a national bank under Florida's long-arm statute must be quashed if the complaint fails to allege facts showing the bank was doing business in Florida and the cause of action arose from that business.


Headnotes

[1] Substituted service of process on a foreign corporation under Florida's long-arm statute requires the complaint to allege facts showing the corporation was doing business…

[2] A plaintiff seeking to invoke Florida's long-arm statute for substituted service of process bears the burden of pleading sufficient facts to justify its application.

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Facts & Procedural History

Plaintiff sued a national bank for dishonoring drafts drawn on a letter of credit. The bank, with no presence in Florida, moved to quash substituted s…

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Opinion of the Court
HUBBART, Judge.

HUBBART, Judge.

This ease is a suit to recover on certain alleged dishonored drafts drawn on a line of credit issued by a national bank. The trial court refused to quash service of process on the defendant bank. The bank takes this interlocutory appeal.

The issue presented for review is whether substituted service of process made on a national bank as a foreign corporation under Florida’s long-arm statute [Section 48.181(1), Florida Statutes (1975)] should be quashed where the complaint fails to allege any facts tending to show that (1) the national bank was doing business or conducting a business venture in Florida, and (2) the cause of action sued upon arose out of a transaction connected with or incidental to such business or business venture. We hold that substituted service of process must be quashed under such circumstances and reverse.

The plaintiff-appellee [Banco Del Atlánti-co] brought suit against the defendant-appellant [Chase Manhattan Bank] and alleged that Chase Manhattan as a national bank organized under the laws of the United States issued a letter of credit in which the plaintiff was the beneficiary and thereafter dishonored a series of drafts drawn thereon. The complaint fails to allege that Chase Manhattan committed any of these acts in Florida while doing business or conducting a business venture in Florida.

Chase Manhattan moved to quash the substituted service of process made upon it for failure to comply with Section 48.181(1), Florida Statutes (1975). Chase Manhattan filed an affidavit signed by one of its vice presidents stating that it was a national banking association chartered under the laws of the United States, that its principal office was in New York City, and that it had no offices, branches, employees or records in Florida. The plaintiff filed no affidavits or other sworn proof. The trial court denied the motion to quash.

Section 48.181(1), Florida Statutes (1975), provides for substituted service of process on a foreign corporation who carries on a business or business venture in this state for “any action or proceeding against them, or any of them, arising out of any transaction or operation connected with or incidental to the business or business venture.” Statutes of this nature are strictly construed and parties seeking to invoke them are required to bring themselves clearly within the provisions of the statute in order to render the substituted service of process effective against the defendant. Wm. E. Strasser Construction Corp. v. Linn, 97 So. 2d 458 (Fla.1957); Lyster v. Round, 276 So. 2d 186 (Fla. 1st DCA 1973). Among other things, it is the plaintiff’s burden to plead sufficient facts to justify the application of the statute in order to withstand a legal challenge to such service; failure to do so constitutes grounds for dismissal of the complaint or quashal of the service of process. Elmex Corp. v. Atlantic Federal Savings and Loan Assn. of Ft. Lauderdale, 325 So. 2d 58 (Fla. 4th DCA 1976); Nichols v. Seabreeze Properties, Inc., 302 So. 2d 139 (Fla. 3d DCA 1974); O’Connell v. Loach, 194 So. 2d 700 (Fla. 2d DCA 1967); Lake Erie Chemical Co. v. Stinson, 162 So. 2d 545 (Fla. 2d DCA 1964). See also James v. Kush, 157 So. 2d 203 (Fla. 2d DCA 1963).

In the instant case, the plaintiff’s complaint falls woefully short of invoking Section 48.181(1), Florida' Statutes (1975), sufficient to withstand a motion to quash the substituted service of process. The complaint does not allege that the cause of action arose from a business or business venture of the defendant in Florida. It does not even allege that the cause of action arose in Florida. Indeed, plaintiff’s counsel in oral argument before the court stated that he had no knowledge where the cause of action arose. It is therefore clear that the substituted service of process on Chase Manhattan should have been quashed in this case.

Chase Manhattan further urges that the venue is improperly laid in this case under 12 U.S.C. § 94. See National Bank of North America v. Associates of Obstetrics and Female Surgery, Inc., 425 U.S. 460, 96 S.Ct. 1632, 48 L.Ed.2d 92 (1976); Exchange National Bank of Chicago v. Rotocast Plastics Products, Inc., 341 So. 2d 787 (Fla. 3d DCA 1977) (Opinion filed Jan. 11, 1977). We do not pass upon this contention because the issue is not properly before us. The record does not reflect that Chase Manhattan ever made a motion to dismiss the complaint on the ground of improper venue. The issue is therefore not preserved for appellate review.

The order appealed from is reversed with directions to quash the service of process made upon Chase Manhattan Bank.

Reversed and remanded.


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Citator

Cited By

  • Pelycado Onroerend Goed B.V. v. Ruthenberg, 635 So. 2d 1001 (Fla. 5th DCA 1994)
    …judgment against nonresident defendants. See Firestone Steel Prods. Co. of Canada v. Snell, 423 So. 2d 979, 980 (Fla. 3d DCA 1982); Turcotte v. Graves, 374 So. 2d 641, 643 (Fla. 4th DCA 1979); Chase Manhattan Bank, N.A v. Banco del Atlántico, F.A., 343 So. 2d 936, 937 (Fla. 3d DCA 1977). Ruthenberg alleged in the complaint that appellants were foreign corporations and that they owned property in Her-nando County. He did not allege that they were engaged in business in Hernando County and that the cause of ac…
  • Caribe & Panama Invs. v. Lauge Christensen, 375 So. 2d 601 (Fla. 3d DCA 1979)
    …oungblood v. Citrus Associates of the New York Cotton Exchange, supra, and he must plead sufficient facts to justify the application of the statute in order to withstand a legal challenge to such service. Chase Manhattan Bank v. Banco Del Atlantico, 343 So. 2d 936 (Fla. 3d DCA 1977). We concur with the reasoning expressed by our sister court in Youngblood that attempted service upon a non-resident foreign corporation pursuant to Section 48.-081(1) by personally serving an officer of that corporation while he…
  • Palmer Johnson Yachts v. RAY Richard, Inc., 347 So. 2d 779 (Fla. 3d DCA 1977)
    …“It is plaintiff’s burden to ‘plead’ (present) facts which clearly justify as a matter of law the applicability of the substituted service statutes in order to meet a challenge to such service.” See also Chase Manhattan Bank v. Banco Del Atlantico, 343 So. 2d 936 (Fla. 3d DCA 1977). Further, it is necessary that the jurisdictional basis for service upon a non-resident defendant be alleged in the complaint. See Joyce Bros. Storage & Van Company v. Piechalak, 343 So. 2d 97 (Fla. 3d DCA 1977); and Lopez v. La F…

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