Saturday, January 10, 2009

Mitchell got SERVED!

How can a state court assert jurisdiction over a non-resident?

Pennoyer v. Neff , 95 U.S. 714 (1877)

Facts
Marcus Neff, a resident of California, wanted to obtain land in Oregon under a land grant. Neff needed the help of an attorney, so he hired John Mitchell to assist him. Mitchell later sued Neff in Oregon for unpaid legal fees. Mitchell told the court that he could not find Neff because he didn't know his address in California. He was instructed to place notice of the suit in an Oregon newspaper every Sunday for six weeks. Of course Neff never heard about the suit and lost becuase he did not show up for the proceedings. Oregon seized Neff's land and sold it to Mitchell, who then sold it to Pennoyer.

Question
1. Can a state court seize and sell property of an out-of-state resident without serving them notice of legal proceedings?

Holding
1. No

Reasoning
1. There are two ways a state can assert jurisdiction over a non-resident. The individual must be personally served notice, or their property must be seized prior to legal proceedings.

Notes
This case began as an in personam dispute, which means that one individual makes a claim against another.

Another type of case is in rem, when two individuals have a dispute over who owns a piece of property.

Finally we have quasi in rem cases, which is where Mitchell v. Neff ended up. In quasi in rem a court seizes a non-resident's property and rules on it. The court does this because it doesn't have jurisdiction over the non-resident.

It appears Mitchell was trying to pull a fast one. But since Neff was never served notice, Mitchell himself got SERVED!

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