Facts
- Adolf Kahn, a German citizen and resident, sued New York Life Insurance Co. in Oregon state circuit court on a life insurance policy.
- The policy was applied for and executed outside Oregon, involving company offices in New York and Europe.
- New York Life, a foreign corporation authorized to do insurance business in Oregon, filed a statutory power of attorney appointing an Oregon resident (R. A. Durham) as attorney-in-fact for service of process under Or. L. § 6327.
- Kahn served summons and complaint in Oregon by delivering them to Durham in his capacity as the designated statutory agent.
- New York Life specially appeared and moved to quash service and dismiss, arguing (1) service on Durham did not confer jurisdiction, (2) Kahn’s nonresidency defeated Oregon jurisdiction, and (3) the policy required disputes to be heard exclusively in Karlsruhe, Germany.
- The circuit court (Judge George Tazwell) granted the motion and refused to proceed.
- Kahn sought an original writ of mandamus to compel the circuit judge to take jurisdiction and try the case.
Issues
- Whether a foreign insurer doing business in Oregon, having appointed a statutory agent for service under Or. L. § 6327, is subject to Oregon jurisdiction in an action by a nonresident on an insurance contract made outside Oregon.
- Whether a policy clause purporting to grant exclusive jurisdiction to a foreign court is enforceable to bar an otherwise proper Oregon action.
- Whether mandamus is available to compel a trial judge to exercise jurisdiction and proceed with trial after quashing service and dismissing on jurisdictional grounds.
Decision
- The Oregon Supreme Court granted a peremptory writ of mandamus directing the circuit judge to assume jurisdiction and proceed with the case.
- Service on the insurer’s statutory attorney-in-fact was lawful and sufficient to give Oregon courts personal jurisdiction under Or. L. § 6327.
- The forum-selection clause conferring exclusive jurisdiction on the courts of Karlsruhe, Germany, was void as against public policy and did not defeat Oregon jurisdiction.
- Because the trial court had a legal duty to entertain the action and proceed, mandamus was an appropriate remedy.
Legal Principles
- A foreign insurance company that qualifies to do business in Oregon and appoints a statutory agent for service under Or. L. § 6327 consents to suit in Oregon courts through service on that agent in “any case, suit or proceeding” within the statute’s terms.
- Statutory consent to jurisdiction under Or. L. § 6327 is not limited to policies issued in Oregon or to suits brought by Oregon residents, absent statutory language imposing such limits.
- Contract provisions that attempt to oust Oregon courts of jurisdiction by conferring exclusive jurisdiction on a designated foreign court are contrary to public policy and void; jurisdiction of state courts is prescribed by law, not private agreement.
- Mandamus may compel a judge to exercise jurisdiction when jurisdiction exists and the judge refuses to proceed, thereby failing to perform a clear legal duty.
Conclusion
The Oregon Supreme Court held that a foreign insurer’s statutory appointment of an Oregon agent for service subjected it to Oregon jurisdiction in a policy action brought by a nonresident, invalidated an exclusive foreign forum clause as against public policy, and used mandamus to require the trial court to hear and try the case.