National Equipment Rental, Ltd. v. United Lumber Co.

Opinion

KINGSLEY, J.

This is an appeal from a summary judgment entered against appellant Lumber Co., based on a foreign judgment entered against appellant by the Supreme Court of New York. The court below granted summary judgment to respondent on the ground that there were no issues of fact to be tried, finding that the New York judgment was to be given full faith and credit in California. Appellant alleged that the New York judgment was not entitled to full faith and credit on the ground that the New York court never acquired jurisdiction over appellant.

On May 19, 1969, appellant lessee, United Lumber Co., a California corporation doing business wholly within the State of California, entered into a contract for the lease of computer equipment from respondent lessor, National Equipment Rental, Ltd., a New York corporation not qualified to do business in California.

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Paragraph 16 of the agreement provided that all actions be litigated in New York and that service of process was to be made by mail to the address stated in the agreement. That paragraph reads as follows:

“16. Execution; Law Governing; Service: This lease shall only be binding when accepted by the Lessor at its Elmont, N. Y. office and shall be deemed to have been made in Nassau County, New York and shall be governed by the laws of the State of New York except for local recording statutes. As part of the consideration for the Lessor’s executing this lease, Lessee agrees that all actions or proceedings arising directly or indirectly from this lease shall be litigated only in courts having situs within the State of New York and the Lessee hereby consents to the jurisdiction of any local, state or federal court located within the State of New York and waives personal service of any and all process upon the Lessee herein, and consents that all such service or process shall be made by certified mail, return receipt requested,

directed to the Lessee at the address hereinabove stated;

and service so made shall be complete two (2) days after the same shall have been posted as aforesaid.” (Italics supplied.)

The address of the lessee is typed in the contract next to items 6 and 7. Item 6, which is entitled “Equipment Location,” and item 7, which is entitled “Lessee’s Address,” have only the following words typed as the address for both the equipment location and lessee’s address: “9250 Lower Azusa Road, Temple City, California.” No director’s or officer’s name is included with the above address.