Swenson v. Assurance Co

In Swenson v. Assurance Co., 33 N.C. App. 458, 235 S.E.2d 793, a shareholder sought to restrain the holding of a stockholders' meeting for the election of directors. The shareholder argued that his action was proper under N.C. Gen. Stat. 55-71, which did not require a summons. The Court held that the summary proceedings under N.C. Gen. Stat. 55-71 were not applicable, and then sought to determine whether there was a civil action pending in which the court acquired jurisdiction to enter an order granting any relief. The Court cited Rule 4 of the Rules of Civil Procedure and stated that it "is clear and unambiguous in its requirement that '(u)pon the filing of the complaint, summons shall be issued forthwith, and in any event within five days . . . .'" Id. at 465, 235 S.E.2d at 797. (citing N.C. Gen. Stat. 1A-1, Rule 4). Importantly, the Court stated that "'service of summons, unless waived, is a jurisdictional requirement.'" Id. The Court then held that "the court acquired no jurisdiction over the person of respondent or the subject matter of the action and hence was without authority to enter any order granting any relief." Id.