Civil Procedure I Outline

Civil Procedure
I. Personal Jurisdiction

Constitutional Limits on Personal Jurisdiction

1. Historical Perspective
a) Pennoyer v.Neff (S.C. 1878, Justice Fields)
i) Rule: A state has two options to establish personal jurisdiction over a non-resident defendant:
a) serve process within the borders of the state,
b) express consent from the defendant.
ii) Reasoning:
– ‘principle of public law’ – no state can exercise direct jurisdiction and authority over persons or property without its territory(Old World concept).
.- each state is a sovereign entity that possesses exclusive jurisdiction over persons and property within its borders.
– ‘Due Process’- 14th Amendment – used as dicta – but makes it a jurisdictional standard – proceedings of a court over whom the court has not jurisdiction, is a violation of due process.
b) Full Faith and Credit Clause (Article 4)
i) Provides that all states must recognize the judgments of other states, provided that the ruling court properly established personal jurisdiction over the defendant.
ii) Full Faith and Credit Statute: extends this notion so that Federal courts must recognize the judgments of state courts.
c) Fourteenth Amendment “Due Process” clause (1868)
i) often used as basis for challenges to state jurisdiction
ii) if state enters judgment without jurisdiction, it violates due process and is not
entitle to full faith and credit.
d) In Rem Jurisdiction – court’s jurisdiction extends only to the property attached, not the person
i) true in rem – adjudicate ownership to property as to the whole world (condemnation)
ii) quasi in rem type 1 – adjudicate ownership between specific parties
i)quasi in rem type 2- adjudicates matter in which the property has nothing to do with the law suit, but is attached to establish jurisdiction at the beginning of the suit. The state has jurisdiction only over the property, so is limited to this amount to cover the amount in dispute. This is based on a legal assumption that property is always in the possession of its owner, thus attachment will give the owner proper notice of service.
2. Interim Developments
a) Corporations
i) legal fiction – a “person”- considered separate entity from it’s shareholders and officers – this creates a problem for jurisdiction b/c a corporation is intangible – does not physically exist anywhere.
ii) Privileges and Immunities Clause – provides that one state cannot exclude the citizens of another state from the privileges and protection granted to its own citizens – corporations not protected – can only transact business with the state’s consent, express or implied. Consent statutes for jurisdictional purposes.
ii) Commerce Clause – only Federal G’ment can regulate interstate commerce – prohibits the states from burdening interstate commerce, therefore states cannot create a greater burden on non-resident corporations. Court begins to look at a corporation’s “presence” as an indicator for jurisdiction.
b) Individuals: increased mobility of people puts pressure on jurisdictional doctrine
Solutions:
i) expand quasi-in-rem to include intangible property, such as debt
ii) Domicile: a person is subject to personal jurisdiction in his/her domicile, regardless of where process is served
iii) Consent Statutes (similar to corporations)
*Hess v. Pawloski (S. Ct. 1927) – Justice Butler
Issue: Is a Mass Statute holding that driving on Mass public roads implies consent to appoint an agent for jurisdiction purposes in actions relating to any accidents that may occur on those roads.
Rule: A legal fiction, for the purposes of regulation, can be enacted by statute on a situational basis.
Assumption: A state has the right to regulate dangerous and risky activities occurring with in its borders, specifically driving on its highways.
Reasoning: The court creates a “legal fiction” to work around the framework of the Privileges and Immunities clause, outlawing discrimination against nonresidents, and Pennoyer framework – requiring in-state service, but allowing consent as an alternative. The court shifts focus from authority over person or property, to authority over the underlying transaction that occurs within its borders.
1) Implied Consent.
2. The Modern Era
a) Extension of “presence”
-in dealing with corporations, the court moves away from Pennoyer scope of presence and consent, and focuses on whether a corporation was “doing business” in the state.
b) New Scope: “Minimum Contacts” requirement
i) International Shoe Co. v. Washington (S. Ct. 1945) – Justice Stone
(shoe company that had no office in state, but employed 13 salesmen there to sell products under the direct supervision of the company)
Issue: What constitutes “presence” for purposes of jurisdiction?
Rule: Jurisdiction over a non-present non-resident is just if
1) a person’s activities within the forum state are continuous and systematic, so that the party enjoys the benefits and protection of the laws of the state and establishes sufficient contacts and ties within the state to make the exercise of jurisdiction reasonable.

2) a party has minimum contacts with the forum state so that the quality and nature of the action arise out of the party’s link to the state.
Affects: The court shifts the scope from the idea of “presence” to the idea of “traditional notions of fair play and substantial justice” – an examination of the fairness of a state to exercise authority over an individual. Within this scope a defendant must have minimum contacts within the state, either through the quality and nature of the action or contact or through the defendant’s link to the state as being continuous and systematic.
*this new scope applies to corporate defendants and individuals
*there is not a bright line rule judging the quality and nature of a contact
ii) Intl. Shoe presupposes 2 types of personal jurisdiction:
1)General Jurisdiction – contacts to state are continuous and systematic but are unrelated to the cause of action
2) Specific Jurisdiction – the contacts to the state are related to the claim (minimum contacts)
iii) McGee v. International Life Insurance Co (S. Ct. 1957)