994 RIGGS V. CLAY COUNTY BURIAL AssocIATioN [192 RIGGS V. CLAY COUNTY BURIAL ASSOCIATION. 474* Opinion 'delivered ; July 13, 1936.. COR:FORATIONS—SERNTICE OF. paocEss. 2—Whe're a countY is,' for pUrpose •of jUrisdiction of . COUrts, diVided 'hy legislative act into tWd, dis-: tricth, 'with 'a proviSion 'that a: resident. of! One district .shall •nbt he, liable tb be sued in the other district, a: :burial assoCiation with. offices, in . one:district and haying, , an . employee in . charge , of branch office in ,the other districi may, under § 1152, Crawford MOg es' Dig., he sued iii the district where the bianch Offre Mainfdined by serviCe Of 'nroceSS On the eniPloyOa in Charge of the branch 'Office • in -that district: ., • : • Appeal. from:Clay Circuit Conrt, .Western District ; Neil KilOnig4; Jn . d . ge 147 ; j. Seltooiiover, and 0, . !11.,Oliver,,Ir., fel- appellant. 0. 17:Ward, for appellee. • :.••• . SMITH, J. .The Clay County Burial AssociatiOn was sued' by. one ;of. its members: ; in- the.. Western 'District of Clay . ieounty . , and •a motion: was: 'sustained lo • quash . •the service of sumnions, upon the gronnd• that the snit could not• be. maintained in that • distriet . of' the county, and .this appeal is from: that order. :i! -•• • The articles Of 'ass'ociatiOn . of 'the . dofendant; herein-after referred- to • as 'the' association; ••which . were Offered in evidence npon' the' hearing 'of, the n•iotion to quash . the setlii6e; that. ". the Corporation shall . .be located in the town of Recter, •Arkansas . (branch... in;.the 'town of Piggott,' ArkanSas).'' . These articles : also recite..f 'that the' putPose of the Corporation is and shall be thelurniSh-ing of funeral • or burial 'benefits to the _members of said assOCiation."- . There are* five classes of membership, the highest 'being Class " AA," *whoSe Members are 'entitled fo a funeral costing . $300. Other classeS •are awarded funeral services at lower costs, the lowes -t being Class "D," Whose deceased..members Are •giVen-• funeral services costing $60.. These snin's are • not paid to the families of the 'members who die, but .. the :association ,burieS the deceased members in a . manner costing not•more than the sums allotted to the class to which the' deceased' members belonged.
ARK.] RIGUS V. CLAY • COUI■I■ TY BURIAL ASSOCIATIOK .. 995. The expenses of the funerals are paid by assess, ments levied, against the surviving members of the classes' to which the •deceased memibérs belonged. . The association was organized and is operated by .W: H. Irby; who was its secretary and treasurer.. He owned and operated what he called funeral parlors at Rector and Piggott, in the Eastern District ! of Clay' county, and at Corning, in. the Western District of that COunty, and testified that he "had been designated funeral director • to ; furnish the. benefitS- for the 'Clay , County Burial, Association.." . If he did not bury. a deceased member he employed some-other undertaker to do . so. The, profits 'derived from: these services appear to have been. Irby's , only .compensation.. • . -Irby-was the. only witness. ! who testified on:the hearing of the motion to quash service- of snramonS, and his testimony, in -addition to• the facts above recited, Was to. the folloWing ,effect. He waS , lhe -active mAnager. The. officeS of, the ! aSsodiation. are at Rector; although he Maintained 'funeral, parlors!iii Rector, -Piggott and Coming. The-assessments'are payable to him as treasurer, and re-• ceipts therefor : •are • issued in his name : a's treasurer, either by himself or his repreSentatiVes in charge of the parlors at .Rector, Piggott and Corning There are between eight and ten thousand niembers of the association, in the Western District of- Clay , county. -Notices .of assessments recited that assessnients may be paid at Rector, Piggott or Corning, as.the,members preferred. These notices of• assessments containedthe names of: the mem-, bers who :. had •een buried by . the association; and whose. deaths..liad made the: assesSments necessary. , This Ax-rangement for the payment OP'assessthents • is , for' the convenience of the. .members ! .•. , ; About twenty-five hun-- dral members . paid . at • Corning. ..He furnished . blank r e, ceipt books, which are kept at the, undertaking parlors .in" Corning for this purpose: The, parlors, at Corning is in charge of NV al.lace Edmonston and Miss Mary:Hull, .4000 of, whom had authority to collect assessments and to, issue receipts therefor; signing the name of Irby as treasurer. -Both Edmonston and Miss . HUH worked for hirn. Neither.ds: employed by the association. • He-pays them:
996 RIGGS 'V. CILAY• COUNTY BURIAL. ASSOCIATION. • [192 personally: The association, pays them-nothing. ; Miss Hull:keePS the records and makes report. :to' him ! of :as-, sessments Collected Corning. There: are no ; other ords kept at •COrning. The association's records' are kept; at :Rector.• Miss ;Hull .. and Edthonston. 'are. his era,. ployees..". c" He -(Edmônston) , is: :a. funeral director, and-does fUneral : work. Miss . Hnll wbrksfri . me ancf :Stays there (at , 'COrning) when, Mr.' , Edinonston : iS out! to 'take' calls for thefuneral hothe. : • ,, • • .• The. SUramonS (the • Service ofwhièll was qua.shed the 5 orderrof the court) was Served Upon Ednionsten in; Corning,' which is the seat of -the Court 'for . the Western, District : of Clay: eountY. • : • • '; '• To affirm the action of the court below it is' Pointed: out that . the.aCt establishing:separate:courts in, the county of :Clay (Act XIV, Acts :1881, page. 21) . provides that the, jurisdiction of these' courts . shall : :Separate ..and tinet as. . if they ..Were held ,:in • .different ,conStittitional connties; and, it • is specifieally-provided f,that no, citizen. or: resident: of the' . astern, DiStriat , shalt be:diable ;to' ibe: sued..in said! .Western, District;:, nor any-citizen , or resi): dent ,of the Western District shall ;Ije liable ta , be sued in. the' Said .Eastern District in.'any aetion whateVer.77-,,i • .;. f. Treating : these districts; . therefore, as 'seParate.cdmr-; ties-Tor thepurpose of -ascertaining 'Whether the : cOurts of the Western, District • have- jurisdictiOn a . cauSe of 'ac: tion‘ againsV the , ,association, .whoSe idOmicile iS_ in the Easteril • District of . the- 'county; • it _beconies . neeessary to decide •Whether 'That . ; : jurisdietion 'is conferred .. on the, courts of the 'Western- Distriet'under • the proiisions of “152;:, Crawford &Moses ?: Digest; asapPlied to the facts hereinbefore recited. This ' section reads as follows " . Any -and all :foreign_ 'and-. doMestie. CorPorations 'who' keep or : inkintain: a'ny of the , ebunties of 'this' State . . a, branchoffice or other place elf business : shall be • Subject to. suits in 'Any of said Counties' 'where !said -cdrporations ; s'o' keep's . (it gtich office 'or 'place of . buSiness,. and. service .of summons . or. other. process , of: law , frOm any of. the . said. cOurts , •held in •: . 'said. counties : upon the-agent, servant •or • emploYee in charge of skid . offiCe Or :place .of business 'shall Ile deemed good . and SUfficient 'service . upon
ARK.] RIGGS V. CLAY COUNTY BURIAL. ASSOCIATION. 997. said corporations and shall be sufficient to give jurisdic-:. tion to *any of the courts of ' this State held in -the counties where : said service of summons or other process of law is had Upon said agent, servant or . employee of said corporations. P. • • • • It is 'undisputed that Edmonston kept and main: tainedan office or other place of business in the Western. District of Clay- county; The 'question is whether he kept or maintained sitch*Office or.place of business as the agent, of the associatiOn . :for the transaction 'of. the busi-• ness of the association. • • . - Numerous ca ges have considered .. and conStrued' § 1152,-stipra, in determining whether . a . braneh office*er other place•of kisiness was maintained by a corporation,' either foreign .or: doraestic, -within the meaning of this statute so as to confer jurisdiction upon the courts of the county in which such branch.office or other place of busi-. ness was located. Among .others the following:. Fort Smith Lbr. Co. v.. Shackleford, .115 Ark. 272, 171 .S..W.' 99,; Terry Dairy Co..v:Tarker, :144 Ark. 401, 223 S. W.. 6; Arkansas Power & Light:Co. v. Hoover,182 Ark. 1065, 34 S..W. (2d) 464; Mississippi„River Fuel Corporation. v. Senn, 184. Ark. 554, 43 S.. W. (2d) 255; Bradley Lbr. Co. , v.:Henry, 189 .Ark. 482, 73 S. W. (2d), 157 ; Berryman v. Cudahy:P.acking Co., 189 Ark. 1152,. 76 S. W. (2d). 956 ; Chapman.& :Dewey Lbr. Co. v. Means; 191 Ark. 1066; 88 S.. W.. (2d) 829;. Chevrolet Motor Co. v. Landers Chevro-' let. Co., 183 Ark. 669,, 37 S. W. (2d) 873. . , The association relies upon the Chevrolet Motor - Company case, last cited, as . upholding the ordey..and‘ judgment of the court below to. the effect that- it did • not. maintain a branch, office or other Place of . busineSs in.the Western -District , Clay county,. and could hot, therefore, .sued in the.'courts of that idistrict., •: After reviewing the facth recited-in that Opinion the court there said that the corporation did not keep or maintain a branch office or Other place of business . in the • cOnnty in‘which it had been. sued. 'Here, the 'facts are essentially different from those, in-the motor 'company: caSe, supra. , " There aPpears fo. be no • question that, EdmondSton , and Miss Hull were Ihe agents of the asgo-*
998 RIGGS V. CLAY COUNTY BURIAL ASSOCIATION. [192 ciation. They were constantly engaged in the collection of the assessments due it, the source from which the association derived its income. Their authority to perform this service is not questioned. They collected thousands of assessments each year, and issued binding receipts therefor, the validity of none of which is questioned. The ownership of the building in which this was done is not the controlling question. Ramey v. Baker, 182 Ark. 1043,34 S. W. (2d) 461. Its use for this purpose was permitted and authorized by the secretary and treasurer of the association, who was its managing officer. Members not only went to this place of business to pay their dues, but other members remitted their dues, by mail, which were received and accepted by the association's agents, acting with fuli authority. It is argued that Miss Hull and Edmonston were not the agents of the association • , because they were not paid for their services by the association, but were paid by Irby. There are two answers to this contention. The first is that, if Miss. Hull and Edmonston were in fact agents of the association, it is immaterial whether they received any compensation from it for their services. Section 1152, Crawford & Moses' Digest, copied above, contains no such requirement. Their relation to the association must be determined by a consideration of the duties they were authorized to perform for it and in its behalf, rather than by a consideration of their compensation for the performance of these duties. They made collections of assessments, and issued binding receipts therefor, and made remittances thereof from a fixed and established place of business which was controlled . by the association's general manager. Nor does it appear that these services were rendered without compensation. Irby paid them immediately, but the association paid ultimately. His contract with the association required him to bury its members, and he was paid in each instance the amount of the deceased member's burial benefits. Presumptively he received from the association in this manner remuneration for the expense which he incurred in its behalf in enabling it to perform the functions of its articles of association. However, he had clothed Edmons-
ARK . . 999 ton, upon whom the- service was had, and who was in charge of the place of business in Corning, with certain powers, the possession and discharge of which constituted Edmonston as the agent of the principal in whose name and for whose benefit he acted. We conclude, therefore, that Edmonston was an agent in charge of the branch office or other place of business in..Corning, and service upon him was sufficient, therefore, to confer jurisdiction upon the courts of the Western District of Clay county, in which district Corning is situated. The judgment of the court below . is therefore reversed, and the cause will be renianded with directions to. overrule the motion to . quash the service of the summons.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.