First Wyoming Bank, N. A. Rawlins v. Trans Mountain Sales & Leasing, Inc.

602 P.2d 1219, 1979 Wyo. LEXIS 484
CourtWyoming Supreme Court
DecidedNovember 19, 1979
Docket5140
StatusPublished
Cited by22 cases

This text of 602 P.2d 1219 (First Wyoming Bank, N. A. Rawlins v. Trans Mountain Sales & Leasing, Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Wyoming Bank, N. A. Rawlins v. Trans Mountain Sales & Leasing, Inc., 602 P.2d 1219, 1979 Wyo. LEXIS 484 (Wyo. 1979).

Opinion

ROSE, Justice.

This appeal concerns itself with these three related issues having to do with Wyoming’s long-arm statute: (1) May a Wyoming court exercise in personam jurisdiction over an out-of-state guarantor of a loan made by a Wyoming bank? (2) Does out-of-state personal service require an affidavit under Rule 4(f), W.R.C.P.? and (3) Does out-of-state personal service by a sheriff require appointment of the foreign sheriff under Rule 4(c)(2), W.R.C.P.?

We shall answer the first question affirmatively and the second and third questions negatively.

This appeal also involves two issues of appellate procedure: (4) Is the order voiding judgment with respect to the appellees an appealable order under the facts of this case? and (5) Assuming that the order is appealable, then, under the procedural development of this case, is the first-listed issue properly before this court? We shall answer both of these questions in the affirmative.

Plaintiff-appellant, a Wyoming bank, brought suit in a Wyoming district court on a promissory note executed by Trans Mountain Sales & Leasing, Inc., a Colorado corporation, and on a personal guarantee executed by appellees, Neal E. Ford and Judy K. Ford, both residents of Colorado. Plaintiff obtained a default judgment against all three defendants.

The Fords then moved the district court to void the judgment with respect to themselves. They urged that they lacked sufficient contacts with Wyoming to justify the exercise by a Wyoming court of in person-am jurisdiction over them. In addition, they argued that the Wyoming procedural requirements for serving out-of-state defendants had not been satisfied. The relevant facts relating to these contentions will hereinafter be discussed in detail.

In granting the Fords’ motion, the court held: (1) Wyoming’s long-arm statute, § 5-1-107, W.S.1977, allows for in personam jurisdiction over an out-of-state guarantor of a loan from a Wyoming bank, (2) but personal service outside of Wyoming is a substituted form of publication and the requirements of service by publication must be observed. The district court judge went on to hold that failure to file an affidavit under Rule 4(f), supra, rendered his judgment void with respect to the Fords. The judge further held that the plaintiff should have secured the appointment by the district court clerk of the Colorado officer who served the Fords.

We shall reverse the court’s order voiding the default judgment with respect to the Fords and remand for further proceedings consistent with this opinion.

THE SUBSTANTIVE JURISDICTIONAL ISSUE: ARE THE APPELLEES SUBJECT TO IN PERSONAM JURISDICTION BY A WYOMING COURT?

In its findings of fact, the trial court found that Neal Ford was president of the defendant Colorado corporation and had business dealings within the State of Wyoming in his capacity as president. The court also found that Judy Ford was not an officer, shareholder or employee of the defendant corporation and that she had never *1221 been physically present in Wyoming except once when she passed through the state on unrelated business. The court found that both Fords were residents of Colorado and that the loan guarantee had been executed in Colorado.

In a commendably able and detailed memorandum decision, the district court judge concluded that both Fords were subject to in personam jurisdiction by a Wyoming court. Section 5-1-107, W.S.1977, Wyoming’s long-arm statute, provides in subsection (a):

“(a) A Wyoming court may exercise jurisdiction on any basis not inconsistent with the Wyoming or United States constitution.”

The judge observed and we have said that it was the intention of the legislature to extend state court jurisdiction to the constitutional limit. See, Olmstead v. American Granby Co., Wyo., 565 P.2d 108, 114 (1977). The trial judge further observed that Olm-stead “can hardly be said [to have] exhausted the frontier” and then went on to discuss cases from other jurisdictions in which the exercise of in personam jurisdiction had been expanded considerably.

A Colorado case is very much in point. The opinion of the Colorado Court of Appeals in Vista Financial Corp. v. Tucker, 36 Colo.App. 412, 544 P.2d 643 (1975), although reversed in part, was affirmed with respect to the issue here under discu'ssion. Tucker v. Vista Financial Corp., Colo., 560 P.2d 453 (1977). Judith Tucker, a resident of Colorado, cosigned in Colorado a note with her husband, Herbert Tucker. Judith also signed a disbursal authorization allowing the loan proceeds to be credited to Herbert’s account in a California bank. The loan was made by a California bank and Herbert was apparently in California when the loan was made. Judith was sued in California on the note but chose not to appear. When the plaintiff sought to enforce the judgment in Colorado, Judith tested the validity of the judgment in the Colorado courts on the ground that California lacked in personam jurisdiction over her.

The Colorado Supreme Court held that the California court did have jurisdiction over Judith with respect to the note that she had cosigned. Previously, the Colorado Supreme Court, in Van Schaack & Co. v. District Court, Eighteenth J.D., 189 Colo. 145, 538 P.2d 425, 426 (1975), had adopted the following summary of controlling United States Supreme Court case law from a prominent Oregon Supreme Court decision:

“ ‘ . . . [T]hree criteria can be said to define the present outer limits of in personam jurisdiction based on a single act: First, the defendant must purposefully avail himself of the privilege of acting in the forum state or of causing important consequences in that state. Second, the cause of action must arise from the consequences in the forum state of the defendant’s activities. Finally, the activities of the defendant or the consequences of those activities must have a substantial enough connection with the forum state to make the exercise of jurisdiction over the defendant reasonable.’ ” (Quoting from State ex rel. White Lumber Sales, Inc. v. Sulmonetti, 252 Or. 121, 448 P.2d 571, 574 (1968)).

In applying this test to Judith Tucker, the Colorado Court of Appeals said:

“ . . . [T]he assumption of jurisdiction over Judith Tucker by the California courts did not violate due process. First, by signing the note payable in California and the authorization for the California bank to disburse funds, Judith Tucker did purposefully avail herself of the privilege of acting in California, and caused important consequences there. Without her signature there could have been no disbursal of the funds in California. Second, the cause of action against her arose from the signing of the note, but even more important had there been no disbursal of funds as authorized by Judith Tucker, there would have been no cause of action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Harold H. Dishman v. First Interstate Bank
2015 WY 154 (Wyoming Supreme Court, 2015)
Meyer v. Hatto
2008 WY 153 (Wyoming Supreme Court, 2008)
Cheyenne Publishing, LLC v. Starostka
2004 WY 88 (Wyoming Supreme Court, 2004)
Campbell County School District v. Catchpole
6 P.3d 1275 (Wyoming Supreme Court, 2000)
Chamberlain v. Ruby Drilling Co., Inc.
986 P.2d 846 (Wyoming Supreme Court, 1999)
Shaw v. Smith
964 P.2d 428 (Wyoming Supreme Court, 1998)
Afflerbach v. Cunard Line, Ltd.
14 F. Supp. 2d 1260 (D. Wyoming, 1998)
Goodwin v. Hall
957 P.2d 1299 (Wyoming Supreme Court, 1998)
Amoco Production Co. v. EM Nominee Partnership Co.
886 P.2d 265 (Wyoming Supreme Court, 1994)
McClelland v. Watling Ladder Co.
729 F. Supp. 1316 (W.D. Oklahoma, 1990)
Nutri-West v. Gibson
764 P.2d 693 (Wyoming Supreme Court, 1988)
Ten Mile Industrial Park, Property Owners Association, Inc., K & H Enterprises, Inc., Wheatland Corporation, Ten Mile Village, Inc., Monkey Ward Land Co., Inc., K & K Land and Development Co., a Partnership, Darrel Hoberg, Gwenn Hoberg, Ronald Koenekamp, Karen Koenekamp, Dale Harrington, Wanda Harrington, William W. Kramer, Janet A. Kramer and Maryon Wilson v. Western Plains Service Corporation, a South Dakota Corporation, John P. Clark, Frank D. Everett, Lloyd K. Pugh, Curtis L. Cameron, E.W. Boyles and Floyd Snyder, Jr., All as Individuals, as Directors of Wpsc, as Members of Wpsc's Executive Committee and as Officers and Employees of Each of Their Respective S & Ls, William R. Simpson, Elmer Koehn, Pat Bohan All as Individuals, as Directors of Wpsc and as Employees and Officers of Their Respective S & Ls, United Federal Savings & Loan, Aberdeen, South Dakota, Mitchell Home Savings & Loan, Mitchell, South Dakota, First Federal Savings & Loan, Rapid City, South Dakota, First Federal Savings & Loan, Watertown, South Dakota, Yankton Savings & Loan, Yankton, South Dakota, as South Dakota S & Ls, as Stockholders of Wpsc, as Employers of the Directors and Members of the Executive Committee of Wpsc, and Principals of Their Agents, and Midwest Federal Savings & Loan Association, a North Dakota Savings and Loan as Principal of Its Agents, Charles Hubbell, Yvonne Hubbell, Lincoln Homes, a Wyoming Corporation, James H. Tolhurst, Carol Tolhurst, David J. Tolhurst, Tolhurst Construction, Inc., a Wyoming Corporation, Tolhurst Construction, Inc., a Utah Corporation, and Edward R. Brandt v. Western Plains Service Corp., a South Dakota Corporation Delbert M. Bjordahl, as an Employee of Wpsc and Agent of S & Ls Ron L. Brown, as an Agent of Wpsc John P. Clark, Edward Meekins, Frank D. Everett, Lloyd K. Pugh, Curtis L. Cameron, E.W. Boyles, Floyd Synder, Jr., All as Individuals, as Directors of Wpsc, as Members of Wpsc Executive Committee and as Officers and Employees of Each of Their Respective S & Ls Elmer Koehn, Pat Bohan, M.O. Broschat, All as Individuals, as Directors of Wpsc and as Employees and Officers of Their Respective S & Ls, United Federal Savings & Loan, Aberdeen, South Dakota First Federal Savings & Loan, Rapid City, South Dakota Home Trust Savings & Loan, Vermillion, South Dakota First Federal Savings & Loan, Watertown, South Dakota Yankton Savings & Loan, Yankton, South Dakota, as South Dakota S & Ls, as Stockholders of Wpsc, as Employers of the Directors and Members of the Executive Committee of Wpsc, and as Principals of Their Agents, Wpsc, Bjordahl and Brown and Midwest Federal Savings & Loan Association, a North Dakota Savings and Loan as Principal of Its Agents
810 F.2d 1518 (First Circuit, 1987)
Broyles v. Broyles
711 P.2d 1119 (Wyoming Supreme Court, 1985)
Panos Investment Co. v. District Court Ex Rel. County of Larimer
662 P.2d 180 (Supreme Court of Colorado, 1983)
Markby v. St. Anthony Hospital Systems
647 P.2d 1068 (Wyoming Supreme Court, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
602 P.2d 1219, 1979 Wyo. LEXIS 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-wyoming-bank-n-a-rawlins-v-trans-mountain-sales-leasing-inc-wyo-1979.