St. Mary's Franco-American Petroleum Co. v. West Virginia

Background

A company called St. Mary’s Company challenged a state law enacted February 22, 1905. The company argued the law violated the Fourteenth Amendment by depriving it of liberty of contract and property without due process and by denying equal protection. The dispute centers on who must accept service of process and a ten-dollar payment to a state official under the new statute.

Reasoning

The Court examined whether the state could treat nonresident domestic corporations (those with business or works outside the State) and foreign corporations the same for service of process. The Court said the State has the clear right to regulate its own creations and foreign companies doing business inside the State, and that putting those groups on the same footing was a reasonable classification. The opinion noted the prior law let corporations appoint an attorney, but the 1905 act made the auditor the appointed attorney for service; that change was an allowable amendment and did not unlawfully take property. The Court relied on prior decisions and found no Fourteenth Amendment violation.

Real world impact

Because of this ruling, out-of-state and foreign corporations doing business in the State may be required to accept service through the state auditor and to pay the specified fee without the federal Constitution being read to forbid it. The Court declined to review questions about the law’s expediency or conflicts with the state constitution on this writ of error.