Park Beverage Co. v. Goebel Brewing Co.

Marbury, C. J., delivered the opinion of the Court. This is an appeal from the Circuit Court for Harford County in a case in which the Goebel Brewing Company, a non-resident corporation, had been sued by appellant, and an attempt had been made to subject it to the jurisdiction of the court by service on the State Tax Commission, under the provisions of Article 23, Sec, 111. A motion was made by appellee to quash the writ of summons and to enter a judgment of non pros, and, after a hearing, this motion was granted, and a judgment of non pros entered, from which this appeal is taken. The question involved is whether the defendant is subject to the jurisdiction of the Maryland courts.

The claim for jurisdiction is made under Article 23, Sec. 119(d). This is an enlargement of the prior sub-sections which confer jurisdiction in cases where a foreign corpo ³⁷¹ ration is, or has been, doing business in the State. Subsection (d) reads as follows: “Every foreign corporation shall be subject to suit in this State by a resident of this State or by a person having a usual place of business in this State on any cause of action arising out of a contract made within this State or liability incurred for acts done within this State, whether or not such foreign corporation is doing or has done business in this State.” It is said to be unique among the laws of the various states. (3 Maryland Law Review 35, 38 Columbia Law Review, p. 1060) It has never been before this court, but it has been before the U. S. District Court in two cases.

In the case of Edgewater Realty Co. v. Tennessee Coal, Iron & Railroad Co., D. C. 49 F. Supp. 807 , Judge Coleman had before him the question whether a defendant was doing business in the state, and he decided that it was. He then said that in view of that conclusion, it was unnecessary for him to consider Sec. 119(d). However, he said it was difficult for him to see how the broad provisions in the section could be upheld in the face of the requirements for due process. In a later case, Johns v. Bay State Abrasive Products Co., D. C. 89 F. Supp. 654 , Judge Chestnut passed upon the section and held one of the defendants in a tort case under it.

The section is made applicable to both contract cases and tort cases. The case before us is alleged to arise out of a contract made within this State. The appellee contends, first, that there was no contract made within the State, and second, that Sec. 119(d) cannot be applied in Maryland without constituting an unlawful burden on interstate commerce, and a denial of due process of law. We will not have to consider the second proposition if the first is correct, and therefore we direct our attention at once to the facts. , , The declaration in the case which, curiously enough, is not printed by either party in its appendix, although it is important in showing what the suit is about, alleges that the plaintiff, in February, 1948, entered into an ³⁷² agreement with the defendant for the purchase of a carload of Goebel Beer which was delivered to the plaintiff at Havre de Grace on or about March 2nd, and that following this delivery, another carload was ordered by the plaintiff which