Associates Capital Services Corp. v. Loftin's Transfer & Storage Co.

Plaintiff, an Indiana corporation, brought this action in the United States District Court for the Middle District of Alabama to collect contract payments allegedly due and owing from defendant. Defendant claimed that plaintiff’s failure to qualify to do business in Alabama barred prosecution of the suit. The district court held that plaintiff was not “doing business,” within the meaning of Alabama law, and consequently permitted it to maintain the suit. We affirm.

It is well settled law that if a plaintiff is prohibited from maintaining an action in a state court because of its failure to…