Legal Document

375 U.S. 311 84 Supreme Court Reporter 411 11 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 354 NATIONAL EQUIPMENT RENTAL, LTD., Petitioner,v.Steve SZUKHENT et al. Number 81. Argued Nov. 20, 1963. Decided Jan. 6, 1964. Wilbur G. Silverman, Jamaica, N.Y., for petitioner. Harry R. Schwartz, Brooklyn, respondents. Mr. Justice STEWART delivered the opinion of Court. 1 The Federal Rules Civil Procedure provide that service process upon an individual may be made 'by delivering a copy summons and complaint to agent authorized by appointment * receive process.'1 petitioner is corporation with its principal place business in New York. It sued respondents, residents Michigan, York federal court, claiming respondents had defaulted under farm equipment lease. only question now before us whether person whom were served was 'an appointment' same, so as subject jurisdiction court York.2 2 obtained certain from lease executed 1961. on printed form less than page half length, consisted 18 numbered paragraphs. last paragraph, appearing just above respondents' signatures same type used remainder instrument, provided 'the Lessee hereby designates Florence Weinberg, 47—21 Forty-first Street, Long Island City, purpose accepting any within State York.'3 not acquainted Weinberg. 3 In 1962 commenced present action filing which alleged failed make periodic payments specified Marshal two copies That day she mailed together letter stating documents been her spondents' York, accordance agreement contained lease.4 itself also notified certified mail 4 Upon motion District quashed complaint, holding that, although Weinberg promptly them, explicitly required do so, there therefore 'failure agency arrangement achieve intrinsic continuing reality.' 30 F.R.D. 3, 5. Appeals affirmed, Reporter, 2nd 79, we granted certiorari, 372 974, 83 1110, 10 141. For reasons stated this opinion, have concluded process,' accordingly reverse judgment us. 5 We need case reach situation where no personal notice has given defendant. Since did fact complete timely lawsuit pending against due claim made. quite different cases actual notice, such Schroeder versus City 371 208, .Ct. 279, 9 255; Walker Hutchinson 352 112, 77 200, 178; Mullane Central Hanover Bank & Trust Co., 339 306, 70 652, 94 L.Ed. 865. Similarly, recognized, Court's decision Wuchter Pizzutti, 276 13, 48 259, 72 466, inapposite here. state nonresident motorist statute communication held unconstitutional, despite defendant particular case. dealt limitations imposed Fourteenth Amendment statutory scheme attempts individuals courts. presented here, other hand, party private contract appoint meaning Rule 4(d)(1), personally known party, expressly undertaken transmit party. 6 underlying contractual provision here at issue seems clear. clause inserted agreed order assure litigation should conducted specifically 'This shall deemed Nassau County, regardless parties affixed hereto, interpreted, rights liabilities determined, laws York.' And it settled, courts below agree advance submit permit opposing or even waive altogether. See, e.g., Kenny Construction company Allen, 101 U.S.App.D.C. 334, 248 656 (1957); Bowles Judge Schmitt Inc., 170 617 (C.A.2d Cir. 1948); Gilbert Burnstine, 255 N.Y. 348, 174 Northeastern KF135 N59 706, 73 American Law 1453 (1931). 7 Under well-settled general principles law Weinberg's prompt acceptance transmittal pursuant authorization sufficient validate agency, though explicit previous promise part so. 'The principal's neither nor impliedly request expression assent condition authority, exercise power scope authorization, during term given, reasonable time if fixed mentioned, will bind principal.' Williston Contracts (3d ed. 1959), § 274. 8 deal Rule, applicable all 50 States. But assume uniform standard give way contrary local policies, relevant concept would invalidate issue. reside, validates circumstances contains requiring appointed undertake notify process.5 law, provisions, does require express create valid receipt process. short attorney, includes accept process,6 entirely silent requirement.7 Indeed, identical State. National Equi ment Rental, Limited Graphic Art Designers, 36 Misc.2d 442, 234 N.Y.S.2d 61.8 argued, finally, sought created invalid because conflict interest. This argument based suggestion record related officer corporation. contention ignores narrowly limited nature involved. single receiving An authority can meaningful sense interest antagonistic since both equal assuring event litigation, latter adequate prerequisite judgment.9 A then might well failure operated agency. hold having their 'agent 4(d)(1). reversed remanded further proceedings consistent opinion. ordered. 12 Judgment remanded. 13 BLACK, dissenting. 14 petitioner, Equipment Ltd., Delaware greater City. From location nationwide rental business. Steve Robert Szukhent, father son farming leased incubators farm, signing Michigan obviously prepared company's lawyers. Included paragraphs fine print following provision: 15 '* 16 later brought suit breach Eastern 4(d)(1) authorizes suits process.' Process Mrs. 'agent' farmers. She Szukhents. lawyer appeared especially them moved quash ground but reality company. 17 shows Szukhents never dealings supposed agent. They met, seen, heard her. sign lease, it, received compensation Szukhents, undertook obligation them. fact, handpicked thereafter filed Only after reluctantly revealed truth wife one officers. district judge, applying these facts, effective invalid, quashed. (D.C.E.D.N.Y.). Appeals, judge dissenting, agreeing created. 79 Cir.).1 reverses holds purporting N Dec. Immigration Nationality Decisions disagree holding, believing (1) could validly effected determined holdings sitting State's purported ineffective; (2) however, read calling formulate new definition purposes process, think our formulation exclude category process'; (3) upholding raises serious questions farmers denied violation Fifth Amendments. I. No regulate sort transaction involved.2 There says nothing more 'agent.' attempt define who To me evident draftsmen not, using word 'agent,' show y intention throwing out traditional body creating doctrine branch Therefore, York—the made, determining contract3—that turn test validity appointment.4 19 highest passed statutes, designation denying interpleader, appointment, compliance terms controlling statute. Rosenthal Transp. 196 App.Div. 540, 188 Supplement 154. Even dissenting acknowledged 'would defendants cites three decisions trial judges York's 62 counties upheld agents like these.5 those cases, decided business, company, living distant California. mention case, higher cited opinions raised. seeking apply follow considered appellate question, unexamined doing, see invalid. Also, view taken whose being applied unless are shown 'clearly convincingly' erred.6 Here showing Appeals—where majority dissenter disputed law—has erred.7 II. 20 If standards resolved each rather leaving clearly unequivocally denounce nonresidents contracts substance naming 21 Atlantic first place, interpret rule contemplating genuine agent, sham.8 unknown chosen supervision, and, indeed, officers—facts ever told farmers.9 properly refuse uphold who, otherwise competent, interests he meant represent.10 involved signed machinery delivered, said open 'wide door perpetration fraud maladministration justice.'11 reason tolerate punctilious regard fair dealing matter very important sued. cannot believe some people thousands miles home, bring into allowing true loyalty bringing suit. Canons Ethics forbid serve conflicting parties, least without consent full disclosure.12 standard, 4(d) duty. Furthermore, pointed out, undertaking anyone else given. prophylactic value, kind future impose defendant, place. have, grounds, much statutes declare substituted nonresidents. 446. 22 baron named disinterested one. effect about standardized amounts when they hen there, long existing justiciable dispute controversy, effectively waived objection Both right up relation application impossible square context written. tried locally spared likely injustice litigate burdensome forum ancient Magna Charta.13 generally refused enforce agreements notes foreign along confession judgment, sometimes provisions outlawed statutes14 absence specific prohibitions.15 countless allow insurance companies arrange policies home office company.16 prior own gone great lengths avoid giving enforcement provisions. Compare Exchange Tiffin Wiley, 195 257, 25 70, 49 184; Grover Baker Sewing Machine Radcliffe, 137 287, 92, 34 670. 23 C. Where leisure drawing expert legal advice, drafts contract, waivers privileges other, defy common designed treat coolly negotiated hammered equals. With respect drawn ago said: 24 phraseology insurer tendered prospective policy holder often technical training, rarely accepts his elbow.' Aschenbrenner Fidelity Guaranty 292 80, 84—85, 54 590, 592, 78 1137.17 hardly farmers, hiring equipment, position dicker over what went signed. Yet inevitably mean must go nearly thousand strange city, hire counsel, pay witnesses travel itnesses' hotel bills, try explain jury, ways bear burdens distant, strange, city. course, mind put contract. doubtless hoped, easing innocentlooking succeed making burdensome, disadvantageous, expensive possible lessees contest actions Court, non conveniens, suggested '(a) plaintiff temptation resort strategy forcing most inconvenient adversary.' Gulf Oil Corporation Gilbert, 330 501, 507, 67 839, 842, 91 1055. What unjust result greatly aggravated, think, today's man can, cleverly drafted form, successfully inveigled controversy home. preserve convenient tribunal, defeat purpose. 26 understood simply also, practical matter, guarantee whenever wishes sue someone contracted force clause, confine others frequently which, arisen, restrict See Doyle Continental 535, 148; Insurance Morse, Wall. 445, 451, 365; Nute Hamilton Mut. Gray (72 Mass.) 174; 6A Corbin, 1445. ousts Today's disregards Michigan's supervising protection citizens leave done Cf. Travelers Health Assn. Com. Virginia ex rel. Comm'n, 643, 927, 1154; McGee International Life 355 220, 199, 223. DP D. extend anywhere country (or, presumably, world) something Congress done. Years Brandeis, speaking emphasized always reluctant grant Courts outside territorial borders sits, saying: 27 '(N)o act come attention conferred proceeding circuit citizen sole liberty commence inhabitant found.' Robertson Railroad Labor Board, 268 619, 624 625, 45 621, 623, 69 1119. (Footnotes omitted.) 28 reject construction help powerful litigants unbargained take-it-or-leave-it consistently legislation. 29 end difficult foresee. Clauses Szukhents—clauses inserted, suspect, dreamed them—will soon find 'boilerpla e' everything conditional sales gives green light every large contrive wants defend himself how big enterprises concentrated, like, example, Connecticut, or, Illinois, suffer default judgment. carefully must, rendered hearing, hundreds across continent, probably crippling defense certainly depleting savings themselves Congress, silence let effect, means far-reaching, result. Heretofore judicial good has, another, disregarded one, encouraged trip San Francisco—or Honolulu Anchorage—to Boston, Wilmington. expensive, costing demanded. threat payment claims, wholly merit. news exerting economic wangle contracts. requires imprimatur not. III. compelled brings sharply focus constitutional thereby While implicit oral arguments briefs, adequately discussed. involve matters historical importance. These things lead set down reargument questions. Moreover, might, arguments, conclude substantial weighty nonconstitutional issues favor defendants, unnecessary. prefer await informative discussions deciding questions, rules reargument. am reach, consider, decide My denies following, among reasons. 31 established Pennoyer Neff, 95 714, 565, 1878, boundaries compel resident another appear him. claims except consent. prime value diminished Neff decided. Our increased 38 50. Although improved methods speed ameliorated discomforts, almost miraculous improvements palatable 1878 system woman Hawaii, Alaska, civil lawsuits few hund ed dollars growing ordinary commercial 32 course argued plausibility applicability ran federal, state, court. solely diversity jurisdiction. overriding congressional requirements preserved courts.18 Neither Constitution constitutionally court's forfeits acting happenstance constant aim courts, Erie Tompkins, 304 64, 58 817, 82 1188, been, far possible, protect alike. surely dragged dismissed insubstantial. Happily, considering confronted enactment nonstate establish hear Article III Constitution, commerce I, 8, powers; reside Whatever areas lines, sound justify reliance destroy man's heart 33 relies inapplicable. treats waiver Szukhents' claims.19 buried multitude words too weak imitation treated safeguard Waivers effective, said, deliberately understandingly clear, unequivocal, unambiguous language.20 strains credulity suggest 'accepting exhausts laymen reading legalistic suspected amounted arise. valuable destroyed sharp practices. idea knowing fiction—not amiable that. affirm 35 BRENNAN, THE CHIEF JUSTICE GOLDBERG join, affirm. my view, (1). Mississippi Pub. Murphree, 326 438, 445—446, 66 242, 246, 90 185; Cir., 617, 620; Barron Holtzoff, Practice (Wright rev. 1960), 701. formulating would, first, construe deny principal, Hartsock Commodity Credit Corp., D.C., 181, 183. Second, include forthwith principal. 446, constitutionality statute, reasoning persuasive fashioning rule, engraft requirement Third, corporate purchaser bound proof, addition mere signature consented residence. Rumely, 345 41, 44, 543, 545, 97 770, strive 'that 'blind' Chief Taft admonished famous passage, '(a)ll understand." offends closes installment sale embodying knowingly assented. pitch aims getting wastes explaining mentioning print. Before intelligently State, proof form. 37 satisfied provides, pertinent part: '(d) SUMMONS: PERSONAL SERVICE. together. furnish necessary. Service follows: '(1) infant incompetent person, him thereof dwelling house usual abode suitable age discretion residing therein venue presented. exists citizenship. Code KF62 1332. Venue contested. 1391. paragraph entirety York; summons, covering sent mail, 'Gentlemen: 'Please take enclosed Summons Complaint duly Marshal, your 'Very truly yours, 'Florence Weinberg' Mich.Stat.Ann.1962, 27A.1930, Comp.Laws 1948, 600.1930 (Pub.Acts 1961, 236). McKinney's N.Y.Consol.Laws chapter General Business Law, 229(6). 220. 154, interpreted forerunner 227 Act, Gilbert-Bliss' N.Y.Civ.Prac., Vol. 3A, 1942, (1963 Supp.), creates procedure whereby County Clerk. inapposite, applies permissive exclusive. Phillips Garramone, 1041, 233 842; Torre Grasso, 275, 173 828. allegation pecuniary mattr litigation. Nor permits persons corporation, suppressing service: see, John W. Masury Son Lowther, 299 Mich. 516, 300 Northwestern N69 866 (1941) (involving garnishment attempted employee incurred debt based, concealing employer service, made). involving 'sustains suppress *.' F.R.D., 184. rested contract's lack Of aspects South-Eastern writers Ass'n, 322 533, 64 1162, 88 1440. stipulation govern necessarily binding choose recognize including lived, property. Watson Employers Liability Assurance 348 66, 75 166, 99 74; Clay Sun Office 363 207, 213, 80 1222, 1226, 1170 (dissenting opinion); Order Commercial America Wolfe, 331 586, 1355, 1374, 1687 opinion). look performed, same. Klaxon Stentor Electric Mfg. 313 487, 61 1020, 85 1477. (Sup.Ct., County); Boright, N.Y.L.J., July 17, 1962, Page col. Emerson Radio Phonograph Eskind, 1038, 228 841 County). Helvering Stuart, 317 164, 63 140, 146, 87 154; Durham Lumber 522, 526—527, 1282, 1284, 1371; Propper Clark, 337 472, 486—487, 1333, 1341—1342, 93 1480. 4(d)(7) 'in manner prescribed state.' Szabo Keeshin Motor Express 275 (D.C.N.D.Ohio); Fleming Malouf, 56 (D.C.W.D.N.Y.). Apparently asked supply particulars relationship information furnished. appears, stockholder director collected C.J.S. 525, 866, 870. Canon 6. Charta, chapters 17—19: '17. Common Pleas '18. Trials Writs Novel Disseisin, Mort d'Ancestre (death ancestor), Darrien Presentment (last presentation) proper counties, manner:—We, Justiciary, kingdom, send Justiciaries county, four times year, Knights aforesaid assizes, county day, appointed. '19. assizes county-court, many knights freeholders, county-court remain behind, justice, according importance business.' Reprinted S.Doc.No.232, 66th Cong., Sess. E.g., Ind.Stat.1933, 2—2904; Mass.Gen.Laws 1956, 231, 13A. Farquhar Dehaven, W.Va. 738, Southeastern S6 65, 40 L.R.A., N.S., 956; Schoenberger, 47 Iowa 385. Slocum Western Assur. 42 KF105 F3 235 (D.C.S.D.N.Y.); Reports, 300, 312—316. Bisso Inland Waterways 349 85, 90—91, 629, 632, 911; Lockwood, 357, 379—382, 627. 99, 65 1464, 89 2079. intends disclaimer passing imply prevail transfer 1404(a). apart disregarding trouble expense undergo answering presenting evidence hope obtaining discretionary change venue, really whatever. refrains challenged, consequently consider statement text correct. Johnson Zerbst, 458, 464, 1019, 1023, 1461. Fay Noia, 391, 439, 822, 849, 837; Emspak States, 190, 197—198, 687, 691—692, 997; Aetna Kennedy Bogash, 301 389, 393, 57 809, 811, 81 1177; Hodges Easton, 106 408, 412, 307, 311, 169.

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