Ex Parte Fontaine Trailer Co.
Ex Parte Fontaine Trailer Co.
Opinion
The petitioners, Fontaine Trailer Company ("Fontaine") and International Truck and Engine Corporation ("International"), defendants in an action pending in the Wilcox Circuit Court, seek a writ of mandamus from this Court ordering the trial court to transfer the underlying case to the Winston Circuit Court. The background of the case, and the parties and claims involved in it, are as follows.
On February 22, 2001, Freddie Curry ("Curry") was killed in a vehicular collision that occurred in Orange County, Texas. At the time of his death he was a resident of Wilcox County, Alabama, and was driving a tractor-trailer truck for his employer, Hornady Truck Line, Inc. ("Hornady"), an Alabama corporation. Hornady was the owner of the tractor-trailer unit. The other vehicle involved in the collision was another tractor-trailer truck operated by Charles Thomas Parker ("Parker"), who was likewise an employee of Hornady. International had manufactured the truck-tractor driven by Curry, and Fontaine had manufactured the trailer component. On July 2, 2001, an action was filed in the Wilcox Circuit Court "pursuant to the Wrongful Death Statute and the Survival Statute of Texas."1 The plaintiffs were Angela Taylor, suing on behalf of her and Curry's son, Freddie Curry, Jr., a minor; Kimberly Murphy, suing individually as Curry's daughter and also as the proposed administratrix of his estate; and Richard Curry, suing as Curry's father. Freddie Curry, Jr., was a resident of Butler County, Alabama, but Murphy and Richard Curry are residents of Wilcox County. The defendants were Parker, Hornady, International, and Fontaine. Parker is a resident of Georgia; Hornady is an Alabama corporation, with its home office located in Monroeville, Alabama; International is a Delaware corporation having its principal place of business in Illinois; and Fontaine is also a Delaware corporation, but its principal place of business is in Haleyville in Winston County, Alabama. The plaintiffs asserted various claims of negligence and wantonness against Parker and Hornady and product-liability claims against International and Fontaine. The plaintiffs also made a claim on behalf of Freddie Curry, Jr., against "the defendants" for workers' compensation benefits. That latter claim was subsequently focused so as to target only Hornady. Although International and Fontaine initially challenged the "standing" of the plaintiffs other than Angela Taylor to bring claims against *Page 73
them under Texas law, that issue is not presented in their petitions to this Court. Rather, they seek relief pursuant only to that aspect of their respective change-of-venue motions filed in the trial court seeking a transfer of the action from the Wilcox Circuit Court to the Winston Circuit Court, where Fontaine had its principal place of business. They contend that venue is improper as to them in Wilcox County under the controlling venue statute, §
"(a) All civil actions against corporations may be brought in any of the following counties:
"(1) In the county in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of real property that is the subject of the actions is situated; or
"(2) In the county of the corporation's principal office in this state; or
"(3) In the county in which the plaintiff resided, or if the plaintiff is an entity other than an individual, where the plaintiff had its principal office in this state, at the time of the accrual of the cause of action, if such corporation does business by agent in the county of the plaintiff's residence; or
"(4) if subdivisions (1), (2), or (3) do not apply, in any county in which the corporation was doing business by agent at the time of the accrual of the cause of action."
In their petitions for a writ of mandamus, International and Fontaine argue that subsection (a)(1) would not apply, because the vehicular collision and Curry's resulting death occurred in Texas; that (a)(2) would apply as to Fontaine, but would make venue proper only in Winston County; that (a)(3) would not apply to either International or Fontaine because neither does business by agent in Wilcox County; and that (a)(4) would not apply because neither was doing business by agent in Wilcox County at the time of the accrual of the cause of action. They both moved the trial court to transfer the case to Winston County.
Hornady and Parker filed with the trial court a motion to dismiss, asserting that the Alabama Workers' Compensation Act provided the exclusive remedy as to them, and stating generally "[t]hese Defendants also contend that venue in Wilcox County is improper." No explanatory averment was made and, in particular, there was no assertion that Hornady did not do business in Wilcox County. Initially, by order of October 10, 2001, the trial judge granted the motion as to Hornady and denied it as to Parker, but he subsequently vacated that order and "reinstated" the tort claims asserted against Hornady under theories of negligence, willfulness, recklessness, and wantonness; vicarious liability and negligent entrustment; negligent maintenance and repair; and negligent supervision, hiring, and training. Hornady remains a defendant in the case.2 On April 5, 2002, Hornady petitioned this Court for a writ of mandamus directing the trial court to grant its motion to dismiss, asserting *Page 74 as its sole ground the exclusivity-of-remedy rule of the Alabama Workers' Compensation Act. No issue of venue was raised by that petition. It was denied on May 9, 2002, without an opinion, (No. 1011318), and Hornady's motion for reconsideration was denied on June 27, 2002, again without an opinion. Hornady has not joined in the present petitions for writs of mandamus filed by International and Fontaine.
"The burden of proving improper venue is on the party raising the issue and on review of an order transferring or refusing to transfer, a writ of mandamus will not be granted unless there is a clear showing of error on the part of the trial judge." Ex parte Finance America Corp.,
The trial court actually entered five successive rulings: As already noted, on October 10, 2001, it granted Hornady's dismissal motion while denying Parker's motion. On November 20, 2001, it denied the motions of International and Fontaine for a dismissal, a change of venue, and/or severance. In that order the court took the position that "under Rule 82 of the Ala. R. Civ. Pro., venue that is proper as to one defendant is proper as to all defendants" and concluded that, venue being proper as to Hornady (and Parker who was then still in the case), venue in Wilcox County was proper as to all defendants. The court noted that the plaintiffs claimed that Hornady "does business by agent in Wilcox County," which would satisfy venue as to it pursuant to §
With respect to the facts we will consider in reviewing these petitions, it is appropriate to note the following: In support of their position that venue is proper in Wilcox County, the plaintiffs seek to have us consider a deposition taken of International's "product integrity engineer," on July 12, 2002; some materials retrieved from International's Internet Web site on July 26, 2002; and an invoice from Earnest Boyd d/b/a Pine Hill Supply, in Pine Hill, Wilcox County, Alabama, bearing a logo reading "International Parts Service-Associate Dealer." In its brief in response to the plaintiffs' answer to its petition, International submits as exhibits an affidavit from Ernest Boyd and a "second" deposition of Parker taken August 8, 2002. An earlier deposition of Parker, taken January 9, 2002, is already a part of the materials submitted as exhibits to International's petition.
With the exception of the Pine Hill Supply invoice, the dates of those new submissions all show on their face that they were not generated until after the trial court's last order, dated May 10, 2002 (entered by the court clerk on May 17, 2002). The Pine Hill Supply invoice was never presented to the trial court, as far as any of the materials submitted to us suggest, and the plaintiffs do not so suggest. Thus, we disregard all of these "after-the-fact" materials in our analysis of the petitions for writs of mandamus.
In its submissions to the trial court, International contended that "none of the corporate Defendants do business by agent in Wilcox County." Fontaine likewise asserted that neither it nor International did business by agent or otherwise in Wilcox County and that "even if the court were to consider Hornady Truck Line as a proper defendant, upon information and belief, Hornady does not do business by agent within Wilcox County, Alabama, either." Although International and Fontaine carried their initial burden of showing that they did not do business in Wilcox County, by properly submitted affidavits to that effect, as far as we can tell from the materials before us no proof was ever offered concerning whether Hornady did or did not do business in Wilcox County. As noted, Hornady itself made an initial, naked assertion in its motion to dismiss that venue in Wilcox County was improper, but it never specifically asserted that it did not do business in Wilcox County. *Page 76 Furthermore, Hornady apparently abandoned its venue challenge after its motion to dismiss was denied by the trial court and this Court denied its petition for a writ of mandamus. International states in a footnote to its "reply" brief that "[n]o evidence was shown at the trial court level that the Defendant, Hornady Truck Line, did business by agent in Wilcox County." However, it may be equally stated that "no evidence was shown at the trial court level that Defendant, Hornady Truck Line, did not do business by agent in Wilcox County." The burden of proof in that regard being upon International and Fontaine, our review must proceed upon the assumption that venue was proper as to Hornady in Wilcox County.
The proper method for obtaining review of a denial of a motion for a change of venue in a civil action is by way of a petition for a writ of mandamus. Ex parte Alabama Great Southern R.R.,
Ex parte State ex rel. C.M.,"Mandamus is a drastic and extraordinary remedy and is appropriate only when the petitioner can show (1) a clear legal right to the order sought; (2) an imperative duty upon the respondent to perform, accompanied by a refusal to do so; (3) the lack of another adequate remedy; and (4) the properly invoked jurisdiction of the court."
"(c) Where several claims or parties have been joined, the suit may be brought in any county in which any one of the claims could properly have been brought. Whenever an action has been commenced in a proper county, additional claims and parties may be joined, pursuant to Rules 13, 14, 22, and 24, as ancillary thereto, without regard to whether that county would be a proper venue for an independent action on such claims or against such parties."
International and Fontaine argue to the contrary, asserting that this procedural rule cannot be allowed to affect their right to insist upon a venue proper under §
Helpful to a better understanding of the respective rationales for the positions taken by the parties, and also to our analysis and disposition of the issues presented, is the following chronology of pertinent constitutional provisions, statutes, Rule 82, and caselaw.
Before it was amended in 1988, § 232, Art.
"No foreign corporation shall do any business in this state without having at least one known place of business and an authorized agent or agents therein, and without filing with the secretary of state a certified copy of its articles of incorporation or association. Such corporation may be sued in any county where it does business, by service of process upon an agent anywhere in the state."
The current version of §
"A foreign corporation may be sued in any county in which it does business by agent, and a domestic corporation may be sued in any county in which it does business by agent or was doing business by agent at the time the cause of action *Page 77 arose; provided, that all actions against a domestic corporation for personal injury must be commenced in the county where the injury occurred or in the county where the plaintiff resides if such corporation does business by agent in the county of the plaintiff's residence."
(Emphasis supplied.) That version of §
Section 232 of the Constitution "has been held to be mandatory and restrictive, not permissive; that is, a qualified foreign corporation may be sued only where it is doing business at the time suit is filed." Exparte Miltope Corp., supra,
In 1973, the Alabama Rules of Civil Procedure were adopted, including Rule 82(c). On December 27, 1973, Amendment 328 to the Constitution was ratified. Section 6.11 of that amendment provides:
"The supreme court shall make and promulgate rules governing the administration of all courts and rules governing practice and procedure in all courts; provided, however, that such rules shall not abridge, enlarge or modify the substantive right of any party nor affect the jurisdiction of circuit and district courts or venue of actions therein; and provided, further, that the right of trial by jury as at common law and declared by section
11 of the Constitution of Alabama 1901 shall be preserved to the parties inviolate. These rules may be changed by a general act of statewide application."
In Roland Pugh Mining Co. v. Smith,
This principle was reaffirmed in Ex parte Hideaway Harbor Resort,Inc.,
"Domestic corporations may be joined with other parties pursuant to Rule 82(c) and sued in counties other than those where they are doing business at the time of the suit or were doing business at the time the cause of action arose. In Ex parte Owen,
437 So.2d 476 (Ala. 1983), [which cited Roland Pugh Mining Co. as its authority] a domestic corporation doing business in DeKalb County was held to be properly joined in an action brought in Houston County, where venue was proper as to certain of the defendants in the case. Similarly, in Ex parte Charles Bell Pontiac-Buick-Cadillac-GMC, Inc.,496 So.2d 774 (Ala. 1986), this Court held that a domestic corporation doing business only in Macon County was properly joined in Montgomery County through Rule 82(c), because another individual defendant in the case was properly sued in Montgomery County."
Therefore, the Hideaway Harbor Court concluded that venue was proper in Walker County in the breach-of-contract and fraud action because Hideaway Harbor, a domestic corporation, "was joined with other parties pursuant to Rule 82(c), and it is undisputed that venue was proper as to those other parties in Walker County."
"[t]he corporation was the only defendant in those two cases; because no other defendants were involved in those actions, the provisions for the joinder of claims did not apply. Transfer was, therefore, proper in those cases, on a showing that the defendants were not doing business in the county in which they were sued."
Pursuant to enabling legislation introduced in 1987 and ratified April 1, 1988, §
"Any foreign corporation, whether or not such corporation has qualified to do business in this state by filing with the secretary of state a certified copy of its articles of incorporation or association may be sued only in those counties where such suit would be allowed if the said foreign corporation were a domestic corporation."
"The Alabama Constitution of 1901, as amended by Amendment No. 473, makes venue the same for domestic and foreign corporations and requires that they be treated identically for venue purposes." Ex parte Allen,
"Proper venue with respect to a foreign corporate defendant in Alabama is determined by Ala. Const. 1901, as amended, § 232, and Ala. Code 1975, §6-3-7 . Before the adoption in 1987 of Amendment 473, amending § 232, that section allowed suit against a foreign corporation only `in [a] county where [the foreign corporation] does business,' even if the foreign corporation was a co-defendant with a domestic corporation. Ex parte Harrington Mfg. Co.,414 So.2d 74 (Ala. 1982). Amendment No. 473, however, changed § 232, in part, to allow suit against a foreign corporation `only in those counties where such suit would be allowed if the said foreign corporation were a domestic corporation.' (Emphasis added [in Walker].)
". . . .
"In Ex parte Hideaway Harbor Resort, Inc.,533 So.2d 563 (Ala. 1988), a domestic corporation, organized and registered to do business in Winston County, was a co-defendant with various individuals and foreign corporations in suits filed in Walker County. Although the other defendants were properly sued in Walker County, Hideaway contended that venue in Walker County was improper as to it, and moved to have the cases transferred to Winston County. The trial judge refused, and this Court denied Hideaway's petition for a writ of mandamus ordering the trial court to transfer.
"In refusing Hideaway the relief it sought, we held:
"`We agree with the respondents that Rule 82(c)[, A.R.Civ.P.,] controls in this situation. . . ."`Domestic corporations may be joined with other parties pursuant to Rule 82(c) and sued in counties other than those where they are doing business at the time of the suit or were doing business at the time the cause of action arose. In Ex parte Owen,
437 So.2d 476 (Ala. 1983), a domestic corporation doing business in DeKalb County was held to be properly joined in an action brought in Houston County, where venue was proper as to certain other defendants in the case. Similarly, in Ex parte Charles Bell Pontiac-Buick-Cadillac-GMC, Inc.,496 So.2d 774 (Ala. 1986), this Court held that a domestic corporation doing business only in Macon County was properly joined in Montgomery County through Rule 82(c), because another individual defendant in the case was properly sued in Montgomery County."`We hold that venue was proper in the cases at bar in Walker County because, although Hideaway is a domestic corporation, it was joined with other parties pursuant to Rule 82(c), and it is undisputed that venue was *Page 80 proper as to those other parties in Walker County.'
"Ex parte Hideaway Resort, Inc.,
"While the Hideaway decision deals with the question of proper venue in the context of a domestic corporation seeking a transfer, we think its holding is applicable to and dispositive of the instant case, where a foreign corporation maintains that venue is improper as to it. The 1987 amendment to § 232 specifically authorizes suit against a foreign corporation `only in those counties where suit would be allowed if the said foreign corporation were a domestic corporation.' (Emphasis added [in Walker].)"Under the facts of the instant case, then, American Honda may be sued in the counties where suit would be allowed if American Honda were an Alabama corporation. Therefore, because American Honda is a co-defendant with other defendants pursuant to Rule 82(c), and because venue is proper as to those other defendants in Macon County, venue is proper in Macon County as to American Honda.
"We hold that the trial court erred in granting American Honda's motion to transfer. The Walkers' petition for a writ of mandamus ordering the trial court to set aside its order of transfer is due to be, and it is hereby, granted."
In their petitions, International and Fontaine urge this Court to overrule Ex parte Walker, and to adopt the rationale of Justice Maddox's dissent in that case. Justice Maddox had this to say:
"If I understand the reasoning of the majority, it is based upon the reasoning that, even though Amendment No. 473 states that a suit can be filed against a foreign corporation `only in those counties where such suit would be allowed if said foreign corporation were a domestic corporation' and even though §6-3-7 [, Ala. Code 1975,] provides that `all actions against a domestic corporation for personal injuries must be commenced in the county where the injury occurred or in the county where the plaintiff resides if such corporation does business by agent in the county of the plaintiff's residence,' this Court's Rule 82(c), Ala.R.Civ.P., is controlling."The power of this Court, by a rule of procedure, to affect the venue of actions has always been troubling. Amendment 328, § 6.11, which grants this Court rule-making power, specifically states `that such rules shall not abridge, enlarge or modify the substantive right of any party nor affect the jurisdiction of circuit or district courts or venue of actions therein.' (Emphasis added [in Walker].) Section 6.11 also provides that the rules adopted by the Court `may be changed by a general act of statewide application.'
"The so-called `tort reform' legislation, a general act of statewide application, dealt significantly with the question of the proper venue of civil lawsuits. This action is controlled by some of that legislation, and the trial court was well within its power to order the transfer of this action to Autauga County, in my judgment, on two grounds: (1) The foreign corporation was not doing business by agent in Macon County, and had not done business by agent in the county, and (2) Section
6-3-21.1 (adopting the doctrine of forum non conveniens) authorized a transfer even if venue was otherwise proper in Macon County."Because of the pervasive action by the Legislature in the field of venue of civil actions, I question the continued viability of Rule 82(c), Ala.R.Civ.P., *Page 81 and the cases construing it, some of which I have authored.1
"It appears to me that the Legislature has preempted the field of venue of civil actions, and that any rule of this Court that would authorize a contrary result would itself be in contravention of the Constitution.
________
"1 See, e.g., Ex parte Hideaway Harbor Resort, Inc.,533 So.2d 563 (Ala. 1988)."
More recently, in a series of cases addressing special venue provisions incorporated by the Legislature in general statutes of statewide application, this Court has concluded that the respective enactments evidenced a clear intent by the Legislature to exercise the authority accorded it by § 6.11 of Amendment No. 328, pursuant to which any rules promulgated by this Court governing the administration of courts, and the practice and procedure in all courts, "may be changed by a general act of statewide application." In Ex parte Alabama Power Co.,
In its petition and its reply brief in this Court, Fontaine quotes from a footnote in Ex parte Blount,
The statement in the footnote in Ex parte Blount that "Rule 82(c) does not apply to corporations,"
"It was not Blount's burden to prove that the defendants did business in *Page 83 Baldwin County, until the defendants first established as a basis for the transfer that they did not do business there. Because the defendants failed to carry their burden of proof, the burden never shifted to Blount."
In the present case, International and Fontaine did prove that they did not do business in Wilcox County but there was no proof submitted to the trial court as to whether Hornady did, or did not, do business in that county. Consequently, as previously discussed, International and Fontaine failed to carry their burden of proof in that regard, and the burden never shifted to the plaintiffs.
Act No. 99-249, which amended §
International and Fontaine draw our attention to the statement contained in the "Committee Comments on 1973 Adoption" of Rule 82, that "subdivision (c) cannot be applied in a suit against a foreign corporation so as to violate the constitution." They also point to references to that particular comment in Ex parte Alabama Power Co.,supra,
International makes the argument that "we must assume that the Alabama legislature was aware of Rule 82(c) and purposely did not include Rule 82(c)'s joinder provisions in the revised venue statute." Subsection (c) of revised §
In summary, when §
Consequently, under the set of facts presented by the materials submitted to us in this case, venue was proper as to Hornady and, pursuant to the pendent venue provision of Rule 82(c), proper as to International and Fontaine, the same as if they were domestic corporations. Accordingly, we deny their petitions for a writ of mandamus ordering the trial court to transfer the case to Winston County.
PETITIONS DENIED.
Houston, See, Lyons, Brown, Johnstone, Woodall, and Stuart, JJ., concur.
Moore, C.J., concurs in the result.
Reference
- Full Case Name
- Ex Parte Fontaine Trailer Company and Ex Parte International Truck and Engine Corporation. (In Re: Angela Taylor, on Behalf of and as Next Friend and Mother of Freddie Curry, Jr., a Minor v. Charles Thomas Parker, Individually)
- Cited By
- 44 cases
- Status
- Published