In 1866, Mitchell, attorney from OR, sued Neff, resident of CA, in OR state court to recover unpaid legal fees.
Mitchell published notice of the commencement of the action in an OR newspaper, pursuant to state statute about giving notice to out of state defendants. Neff was not personally served.
When Neff failed to appear, Mitchell obtained a default judgment against him.
Court attached a tract of land that Neff had purchased in OR. Land was sold to Pennoyer at auction and proceeds awarded to Mitchell.
Nine years later, Neff sued Pennoyer in OR federal court to recover the land.
Procedural History:
Neff won in lower court (on basis of technical problems with 2 affidavits, not on jurisdictional issues)
Neff won in SCOTUS
Issues:
Can a state court exercise personal jurisdiction over a non-resident who has not been personally served while within the state and whose property within the state was not attached before the onset of litigation?
Holding/Rule:
A court may enter a judgment against a non-resident only if the party…
Is personally served with process while within the state, or
Has property within the state, and that property is attached before litigation begins (as in quasi in rem jurisdiction)
Reasoning:
"Field theory" of state-court jurisdiction
Every state possesses exclusive jurisdiction and sovereignty over persons and property within its territory
No state can exercise direct jurisdiction and authority over persons or property outside its territory
These principles follow because the states resemble independent nations
Principles are rooted in the Due Process clause of the 14th Amendment. Courts have to give other judgments "full faith and credit".
"Full faith and credit" is not valid if the court did not have jurisdiction.
Dissent:
None given.
Notes:
Courts have to give other judgments "full faith and credit".
SCOTUS doesn't say anything bad about the notice.
State has power over people who are there and the land in its boundaries.
The claim doesn't have to have anything to do with the property in the jurisdiction
In personam - suit against a person
In rem - suit against property
Quasi in rem - suit against someone out of state through property in the state
Oregon has a real interest in making its courts available to its citizens
Since the adoption of DP, the validity of judgments like this may be directly questioned and their enforcement in the state resisted on the ground that proceedings in a court of justice to determine the personal rights and obligations of parties over whom that court has no jurisdiction do not constitute due process of law.
Special appearance means you can enter a jurisdiction in order to dispute jurisdiction issues in a case.
Theology of Pennoyer
States have power over their people
States have power over their property
All assertions of jurisdictional power must be justified consistent with One and Two
Problem - Underinclusive, need a way to protect citizens
How to mitigate
Create quasi-in-rem jurisdiction to permit assertion of claims against non-residents by grabbing property
Physical presence - if you can find them, grab them
