ALAN B McPHERON, INC v. KONING

336 N.W.2d 474, 125 Mich. App. 325
CourtMichigan Court of Appeals
DecidedMay 3, 1983
DocketDocket 59811
StatusPublished
Cited by6 cases

This text of 336 N.W.2d 474 (ALAN B McPHERON, INC v. KONING) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ALAN B McPHERON, INC v. KONING, 336 N.W.2d 474, 125 Mich. App. 325 (Mich. Ct. App. 1983).

Opinion

M. B. Breighner, J.

The issue in this case is *327 whether an Oklahoma judgment should be enforced in a Michigan court where jurisdiction over defendant is dependent upon Oklahoma’s long-arm statute. Under the facts of this case, we hold that Oklahoma obtained limited in personam jurisdiction over the defendant; that the Oklahoma judgment was entitled to be honored by the Michigan courts; and that this case must be remanded to the district court for enforcement.

Facts

Defendant, a Michigan resident, advertised in a national magazine, offering to trade or sell his aircraft. An Oklahoma resident responded to this advertisement. Telephone negotiations between the Michigan and Oklahoma residents resulted in an agreement to exchange one airplane for another and two helicopters. Defendant sent a Michigan agent to Oklahoma to assist and to participate in consummating the transaction. Difficulties arose and the agreement was not completed. The agent was arrested when, at defendant’s instructions, he attempted to return defendant’s airplane to Michigan. He was charged with a felony and jailed.

At defendant’s request, his Michigan lawyer solicited plaintiff, an Oklahoma lawyer, to provide defendant’s agent with legal services. Defendant sent plaintiff a $1,000 retainer. Plaintiff eventually resolved the Oklahoma difficulties and sent a bill to defendant for an additional $2,000, which defendant did not pay.

After serving defendant by certified mail pursuant to Oklahoma’s long-arm statute, plaintiff obtained a default judgment for $2,000 plus fees and costs. Plaintiff then brought suit in Michigan in the 61st District Court to enforce the Oklahoma judgment. Because defendant ignored process from *328 this court, a default judgment was entered against him. The default judgment was later set aside. On motion for summary judgment, the Michigan court dismissed the complaint, holding that the Oklahoma court did not have in personam jurisdiction over defendant. Plaintiff appealed to Kent Circuit Court, which affirmed the decision of the district court.

The Oklahoma resident appeals this decision. The plaintiff contends that the relationship between the parties provides sufficient contacts to justify the exercise of jurisdiction under the Oklahoma long-arm statute. Plaintiff also contends that due process requirements have been met.

Jurisdiction of the Oklahoma Court

A Michigan court has the power to consider whether or not the Oklahoma court had jurisdiction to enter its judgment. A Michigan court may not consider a collateral attack against the obligation underlying the judgment since the judgment has replaced and extinguished that obligation. Wulf Oil Corp v Grebe Drilling Co, 93 Mich App 793, 798; 287 NW2d 344 (1979).

To determine the question of whether the Oklahoma long-arm statute provided in personam jurisdiction over defendant we first look to Oklahoma law to interpret the application of its long-arm statute.

The pertinent statute, 12 Okla Stat 1965, § 1701.01 et seq., provides in pertinent part:

"§ 1701.01. 'Person’ defined
"As used in this Article, 'person’ includes an individual, his executor, administrator, or other personal representative, or a corporation, partnership, association, or any other legal or commercial entity, whether or not *329 a citizen or domiciliary of this state and whether or not organized under the laws of this state.
"§ 1701.03. Bases of jurisdiction
"(a) A court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action or claim for relief arising from the person’s:
"(1) transacting any business in this state;
"(7) maintaining any other relation to this state or to persons or property including support for minor children who are residents of this state which affords a basis for the exercise of personal jurisdiction by this state consistently with the Constitution of the United States.
"(b) When jurisdiction is based solely upon this section, the defendant’s appearance does not authorize the exercise of personal jurisdiction except as to a cause of action or claim for relief arising in the circumstances enumerated in this section.”

The Oklahoma court found that defendant, acting through his agent, had contracted for the purchase of an aircraft in Oklahoma and that his agent, while carrying out the contract, was arrested and charged with crimes. The court further found that defendant had engaged the services of plaintiff, who obtained a favorable disposition of the problems brought on by defendant’s dealings in Oklahoma. Based upon these findings, the Oklahoma court found it had limited in personam jurisdiction over defendant pursuant to 12 Okla Stat 1965, § 1701.03(1).

We conclude that the exercise of in personam jurisdiction over defendant by the Oklahoma court, under the facts of this case, was within the court’s statutory authority. The defendant’s activities fall under either subsection (1) or subsection (7) of § 1701.03 of the Oklahoma long-arm statute.

*330 Subsection (7) provides that the courts of Oklahoma may exercise jurisdiction over any person "maintaining any other relation to (Oklahoma) or to persons or property * * * who are residents of (Oklahoma) which afford a basis for the exercise of personal jurisdiction (consistent) with the Constitution of the United States”.

With respect to this clause the Oklahoma Supreme Court has focused its attention upon the constitutional limitations of the exercise of in personam jurisdiction by its courts. See ABC Drilling Co, Inc v Hughes Group, 609 P2d 763, 768-769 (Okla, 1980); Vemco Plating, Inc v Denver Fire Clay Co, 496 P2d 117, 119 (Okla, 1972).

The Oklahoma court has declared its intention to interpret its long-arm statute expansively. In Vemco, supra, p 199, the Supreme Court found:

"In view of the facts which the affidavits, depositions, and exhibits filed in this case tend to show, it cannot be held that defendant did not contract to supply 'things in this state’ nor that it maintained no relation to 'persons or property’ residing in this State under the above quoted statute. As this statute was intended 'to extend the jurisdiction of Oklahoma courts over nonresidents to the outer limits permitted by the’ United States Constitution’s due process requirements (Hines v Clendenning, 465 P2d 460, 426 [Okla, 1970]) and is to be construed 'to widen the constitutional bases upon which the courts of the states may exercise in personam jurisdiction consistent’ with those requirements (Parks v Slaughter, 270 F Supp 524, 525 [Okla, 1967]), defendant’s arguments and authorities dealing with the bases of jurisdiction provided by the earlier enactment (§ 187, supra) are not persuasive.”

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336 N.W.2d 474, 125 Mich. App. 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alan-b-mcpheron-inc-v-koning-michctapp-1983.