Bearden v. Byerly

494 So. 2d 59, 1986 Ala. LEXIS 3865
CourtSupreme Court of Alabama
DecidedJuly 25, 1986
Docket85-493
StatusPublished
Cited by5 cases

This text of 494 So. 2d 59 (Bearden v. Byerly) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bearden v. Byerly, 494 So. 2d 59, 1986 Ala. LEXIS 3865 (Ala. 1986).

Opinion

TORBERT, Chief Justice.

The plaintiff, Carol Bearden, appeals from the circuit court’s dismissal of her action for a declaratory judgment. The dismissal was based upon a finding by the circuit court that it lacked personal jurisdiction over the defendants.

In June or July of 1983, W. Charles McMinn III, a resident of Pennsylvania, purchased a Cadillac automobile in that state. At that time, the plaintiff, a resident of Alabama, was present in Pennsylvania for the purpose of visiting her mother; and she acquired possession of the automobile from McMinn. The plaintiff later drove the automobile back to her residence in Jefferson County, Alabama, where she has been in continuous possession of it since.

In October 1984, Mr. McMinn died in Pennsylvania. Proceedings were begun in Pennsylvania to probate his estate. Sometime thereafter, counsel for McMinn’s estate demanded that the plaintiff return the automobile to the estate. However, the plaintiff refused, contending that the automobile had been given to her in 1983 by Mr. McMinn as an absolute gift. The es-. tate contends that Mr. McMinn never relinquished title of the automobile, and, therefore, that the automobile is the property of the estate. ■

On August 16, 1985, the plaintiff filed this declaratory judgment action in Jefferson County Circuit Court against the estate of W. Charles McMinn III, and against certain fictitious parties, those being the executors of McMinn’s estate and any persons claiming an interest in the automobile. (Subsequently, the names of the three co-executors were substituted for the fictitious parties.) The complaint sought a declaration of the ownership rights of the respective parties in regard to the automobile, and also sought an injunction to prevent the defendants from taking possession of the automobile.

On September 17, 1985, the defendants filed a motion to dismiss the complaint pursuant to Rule 12(b)(2), A.R.Civ.P. The motion alleged that neither Mr. McMinn, his estate, nor the executors of his estate had “sufficient minimal contacts with the State of Alabama” to give an Alabama court jurisdiction over them. An affidavit of Jeffery G. Sweigart, who was a personal friend and a business associate of McMinn, was also filed in circuit court to support the defendants’ allegations in their motion to dismiss.

On January 24,1986, the defendants’ motion to dismiss was granted because the circuit court found that it lacked jurisdiction over the defendants. The plaintiff appeals from the judgment of dismissal.

The plaintiff contends that Code 1975, § 12-11-33, vests the circuit court with jurisdiction over this case. This statute reads:

“Circuit courts, when exercising equitable jurisdiction, must take cognizance of the following cases:
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“(2) Against nonresidents, when the object of the action concerns ... any interest in, title to, or incumbrance on personal property within this state_”

The plaintiff argues that this statute conclusively grants in rem jurisdiction to a circuit court over a case which involves a chattel located within the boundaries of the [61]*61State of Alabama, even though the defendants are not personally subject to the jurisdiction of the court. The plaintiff concedes in her brief that “[t]he Defendants never transacted any business in Alabama, never committed any tort within Alabama, never owned or possessed any real property within Alabama, and never lived in Alabama.” The dispositive issue is whether the circuit court obtained jurisdiction over the defendants solely because he may have or claims to have an ownership interest in some item of personal property that is located within the boundaries of this state. We must answer this question in the negative, and we affirm the trial court’s judgment.

Historically, personal jurisdiction of state courts was governed by the principle of “territoriality”; so that state courts were deemed to have jurisdiction over all persons or property within the territorial limits of the state. See, Pennoyer v. Neff, 95 U.S. (5 Otto) 714, 24 L.Ed. 565 (1877). However, in 1945, the United States Supreme Court replaced the “territoriality” principle with a “minimum contacts” standard. See, International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945). International Shoe Co. held that in order to subject a nonresident defendant to the jurisdiction of the forum state court, the nonresident defendant must be shown to have “certain minimum contacts with it such that the maintenance of the suit does not offend 'traditional notions of fair play and substantial justice.’ ” International Shoe Co., 326 U.S. at 316, 66 S.Ct. at 158.

Nevertheless, because International Shoe Co. involved in personam jurisdiction, the minimum contacts standard was not applied to cases involving in rem or quasi in rem jurisdiction until the case of Shaffer v. Heitner, 433 U.S. 186, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977). In Shaffer, the Supreme Court expressly extended the minimum contacts standard of International Shoe Co. to in rem and quasi in rem actions. See, Knowles, New Test for State In Rem and Quasi In Rem Jurisdiction, 38 Ala. Lawyer 483 (1977).

Shaffer involved a quasi in rem action in which a Delaware state court had assumed jurisdiction over the defendant on the sole basis that some shares of the defendant’s corporate stock were located within the state. The United States Supreme Court reversed, holding that jurisdiction over nonresident defendants is absent unless sufficient minimum contacts are present, whether the action is in per-sonam, in rem, or quasi in rem. As to in rem jurisdiction, the Court explained as follows:

“The case for applying to jurisdiction in rem the same test of ‘fair play and substantial justice’ as governs assertions of jurisdiction in personam is simple and straightforward. It is premised on recognition that ‘[t]he phrase, “judicial jurisdiction over a thing,” is a customary elliptical way of referring to jurisdiction over the interests of persons in a thing.’ [Citation omitted.] This recognition leads to the conclusion that in order to justify an exercise of jurisdiction in rem, the basis for jurisdiction must be sufficient to justify exercising ‘jurisdiction over the interests of persons in a thing.’ The standard for determining whether an exercise of jurisdiction over the interests of persons is consistent with the Due Process Clause is the minimum-contacts standard elucidated in International Shoe.”

Shaffer, 433 U.S. at 207, 97 S.Ct. at 2581. The Court concluded that “all assertions of state-court jurisdiction must be evaluated according to the standards set forth in International Shoe and its progeny.” Shaffer, 433 U.S. at 212, 97 S.Ct. at 2583.

The effect of Shaffer is best explained as follows:

“Accordingly, it is no longer a sufficient basis for the assertion of jurisdiction merely that the property is located within the state and is thereby physically subject to the power of the court. To the extent that the landmark case of Pennoyer v. Neff [95 U.S.

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Bluebook (online)
494 So. 2d 59, 1986 Ala. LEXIS 3865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bearden-v-byerly-ala-1986.