Opinion ID: 1660360
Heading Depth: 1
Heading Rank: 1

Heading: Shore/Form

Text: Article XII, § 232, of the Alabama Constitution of 1901, and Ala.Code 1975, §§ 10-2A-247 and 40-14-4, bar a foreign corporation not qualified to do business in Alabama from enforcing its contracts in the courts of this state. These laws apply, however, only when the business conducted in this state by the nonqualified corporation is intrastate in nature. A nonqualified foreign corporation is not barred from enforcing its contracts in Alabama when its activities within this state are incidental to the transaction of interstate business. Wallace Construction Co. v. Industrial Boiler Co., 470 So.2d 1151 (Ala.1985). When the activities of a foreign corporation are interstate in nature, then its doing business here is protected by the Commerce Clause of the United States Constitution, and Alabama's nonqualifying laws, which otherwise might interfere with or prohibit the business, are inapplicable. Joison Ltd. v. Taylor, 567 So.2d 862 (Ala.1990). The defendants contend that the summary judgment was proper, relying primarily on the fact that the equipment was to be used on a construction site in Alabama pursuant to a lease solicited in Alabama. Shore/Form insists, however, that its solicitation of business in Alabama and its shipment of equipment into this state pursuant to an equipment lease was not intrastate business activity, and therefore did not preclude it from suing in an Alabama court. We agree with Shore/Form and reverse the summary judgment with respect to its claims. The undisputed evidence in this case shows that Shore/Form actively sought to lease SGB equipment for use in the construction of the Infirmary's parking deck and that it was eventually successful in that endeavor. Shore/Form shipped the equipment by common carrier from its Florida plant to the Mobile construction site. Shore/Form had no offices or plants in Alabama, kept no employees here on a permanent basis, and was not involved in any respect with the actual construction of the parking deck in Mobile. These facts are not sufficient under Alabama law to support the trial court's conclusion that Shore/Form was engaged in the transaction of intrastate business. This Court has consistently held that the mere solicitation of business in Alabama and business contacts incidental thereto do not constitute the transaction of intrastate business. Furthermore, where a transaction requires only the sale or lease of goods and a delivery of those goods into Alabama, we have held it to be within the scope of interstate commerce. See Wise v. Grumman Credit Corp., 603 So.2d 952 (Ala.1992); Joison Ltd. v. Taylor, supra; North Alabama Marine, Inc. v. Sea Ray Boats, Inc., 533 So.2d 598 (Ala. 1988); Wallace Construction Co. v. Industrial Boiler Co., supra; Johnson v. MPL Leasing Corp., 441 So.2d 904 (Ala.1983); Kentucky Galvanizing Co. v. Continental Casualty Co., 335 So.2d 649 (Ala.1976); Houston Canning Co. v. Virginia Can Co., 211 Ala. 232, 100 So. 104 (1924). Based on the aforementioned cases, particularly Johnson v. MPL Leasing Corp . and Houston Canning Co. v. Virginia Can Co ., we hold that Shore/Form was not engaged in the transaction of intrastate business when it leased the equipment. Thus, its activities did not implicate the door closing provisions of § 232 of the Alabama Constitution and §§ 10-2A-247 and 40-14-4, Ala. Code 1975.