a.
Facts-
Harris and Balk are from North Carolina, Epstein is from Maryland. Harris owed
money to Balk, and Balk owed money to Epstein. Epstein brought suit in Maryland
against Harris (while Harris was in Maryland) for the money owed by Balk,
Epstein got his money from Harris, thus resolving the debt between Epstein and
Balk…and effectively, resolving debt between Harris and Balk. Balk then brought
suit against Harris for the money Harris owed him, even though he paid same to
Epstein. Balk claimed that debt was made in North Carolina, so Maryland Ct had
no jurisdiction to attach the debt to the Maryland suit
b.
Procedural
History- Balk sued Harris, district Ct and N.C. Sup Ct found for Harris
c.
Issue-
Whether the situs (location) of the
debt is relevant when determining jurisdiction to attach
d.
Holding-
No, situs is irrelevant in
determining whether a State has jurisdiction to attach said debt to suit
e.
Rule-
For jurisdictional purposes, a debt travel with the debtor. Courts may assert
jurisdiction over debts, so long as the court has jurisdiction over the person
f.
Rationale-
A person’s obligation to pay a debt follows them wherever they go, and a court
may exercise jurisdiction over the debt so long as they may exercise jurisdiction
over the person
g.
Notes:
i.
This
case considers “debt” to be “property”…therefore this case is quasi in rem
ii.
“debt”
not only travels with the debtor…but also with the grantor
iii.
Quasi
in rem- MUST be dealing with some type of property…must be somehow connected
with the lawsuit
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