Favell-Utley Realty Co. v. Harbor Plywood Corp.

Defendant has moved to quash the return . of service of summons on the ground that ■ the defendant was not and is not subject to service of process in this district. Defendant has also moved to dismiss the action on ground of improper venue in that defendant is not a resident of nor “doing business” in this district, or in lieu thereof to transfer the cause to the Western District of Washington, Southern Division.

The underlying facts are as follows: — In 1947 defendant corporation acquired purchase and cutting rights covering California timber and timberlands, the cutting rights to extend over a twenty-year period. In 1948 the defendant corporation assigned its interest in both the outright purchase contract and the cutting option to the United States Plywood Corporation. In consideration the defendant secured the right to buy from United States Plywood Corporation up to ten per cent (10%) of the production of a mill in Anderson, California, operated by the Shasta Plywood Corporation, a subsidiary of United States Plywood Corporation. From October, 1948 to date the defendant has made substantial and continuous purchases of pine plywood produced by the Shasta Plywood Corporation,…