Sunday, October 14, 2012

Pennoyer v. Neff (1877)


a.       Facts- Mitchell was Neff’s lawyer. Mitchell sued Neff for unpaid legal bills. Mitchell was in Oregon, Neff was in California. Because Mitchell could not find Neff, Mitchell filed suit in Oregon and gave notice of suit by publishing in newspaper. When Neff did not respond, default judgment was given to Mitchell. After this, Neff attained land in Oregon. Mitchell exercised his judgment against Neff’s land. The sheriffs sold it: money proceeds went to Mitchell, actual land went to Pennoyer. When Neff found out Pennoyer was in possession of the land, Neff sued Pennoyer
b.      Procedural History- Neff sued Pennoyer, Pennoyer appealed
c.       Issue-
                                                  i.      Whether judgment for money, against a non-resident who was not served valid
                                                ii.      Was it legal for Oregon to enter judgment against Neff without personal service of process?
                                              iii.      Did Oregon have personal jurisdiction over Neff?
d.      Holding- No, it is NOT legal for a State to enter judgment against a non-resident for an action in personam
                                                  i.      Oregon did NOT have personal jurisdiction over Neff
e.       Rule-
                                                  i.      Constructive service may be effectual for proceedings in rem (jurisdiction over property), but personal service of process is REQUIRED for proceedings in personam (jurisdiction over person).
f.       Rationale- Mitchell was suing Neff personally, for money…thus requiring personal service, NOT constructive service. This case was not in rem because Neff acquired the land AFTER the judgment. Mitchell should have “attached” the property to his suit.
                                                  i.      States can exercise jurisdiction over persons within the State and property within the State
                                                ii.      People may “attach” property to a suit if the defendant is out of the State
                                              iii.      No State can have jurisdiction over another State’s people or property—A state has exclusive jurisdiction over their people and property
g.      Notes-
                                                  i.      Quasi in rem: If the suit is purely in personam, State may exercise jurisdiction over any land the D owns within the State
1.      Ex. A lives in Illinois and B lives in Indiana; B owns property in Illinois. A wants to sue B for an in personam claim. A can “attach” B’s land to the suit and can file suit in Illinois for the value of B’s land (which is in Illinois)
2.      Applies to ANY property…not just real property
                                                ii.      Grounds for Jurisdiction
1.      Physical presence
2.      In-state property attachment
                                              iii.      Why do Ct’s limit their Jurisdiction to the State’s boundaries?
1.      In order to avoid “fraudulent and oppressive” suits
                                              iv.      Substitute Service: When you do not serve the actual person in the suit…but rather someone else such as the agent
                                                v.      Publication will not be enough for service for an in personam suit
                                              vi.      In order for quasi in rem jurisdiction to be legitimate, the property must have been attached at the start of the lawsuit, and before the judgment
h.      Full Faith and Credit Clause of the Const
                                                  i.      Principle requiring other States to give full effect to JUDGMENTS rendered in foreign States,
                                                ii.      EXCEPT where the trial Ct did NOT have personal jurisdiction
i.        Transient Jurisdiction: When D temporarily enters the State, the State has transient jurisdiction
                                                  i.      If you fraudulently bring a D into the State, the State does NOT have jurisdiction over the D
                                                ii.      POLICY: The Ct’s want people to try to negotiate first; suits are a last resort

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