Global Oceanic Enterprises, Inc. v. Wayne Hynum

Mississippi Supreme Court·Decided January 15, 2002·No. 2002-CA-00471-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2002-CA-00471-SCT

GLOBAL OCEANIC ENTERPRISES, INC. AND RICHARD COPPOLA

v. WAYNE HYNUM

DATE OF JUDGMENT: 1/15/2002 TRIAL JUDGE: HON. LAMAR PICKARD COURT FROM WHICH APPEALED: FORREST COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANTS: O. STEPHEN MONTAGNET, III ATTORNEYS FOR APPELLEE: WAYNE HYNUM ALLEN LAMAR BURRELL

NATURE OF THE CASE: CIVIL - OTHER DISPOSITION: REVERSED AND REMANDED - 08/14/2003 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

COBB, JUSTICE, FOR THE COURT:

¶1. On June 3, 1999, Global Oceanic Enterprises, Inc. and Richard Coppola (collectively Global) enrolled a Pennsylvania judgment against attorney Wayne Hynum (Hynum) with the Forrest County Circuit Clerk. The Pennsylvania judgment was the result of a fee dispute between Hynum and Global. Hynum objected to the enrollment, claiming Pennsylvania did not have jurisdiction over him. Global filed a response and moved for summary judgment; Hynum also filed a motion for summary judgment. Both parties’ motions for summary judgment were heard before Special Judge Lamar Pickard, and on

September 5, 2001, he entered an order finding in favor of Hynum. Subsequently, Global’s motion to reconsider was denied, and Global timely appealed.

FACTS

¶2. Global is a Pennsylvania corporation. Hynum is an attorney in Hattiesburg, Mississippi. In 1992, Richard Coppola, the president and sole owner of Global, hired Hynum to represent Global in a lawsuit that was pending in the Forrest County Chancery Court. After the litigation ended in 1994, a fee dispute arose between Global and Hynum. On July 15, 1996, Global filed a complaint for breach of contract against Hynum in the Bucks County, Pennsylvania, Court of Common Pleas, alleging that Hynum improperly retained a substantial portion of settlement proceeds that should have been returned to Global.

¶3. Hynum obtained Pennsylvania counsel and entered a special appearance by filing a preliminary objection to Global’s complaint, in the nature of objection to the jurisdiction of the Pennsylvania court on August 5, 1996. Global filed its response to Hynum’s objection on August 14, 1996. Hynum allowed his deposition to be taken on February 5, 1997, and produced documents in response to discovery requests concerning the issue of jurisdiction. On April 22, 1997, Hynum’s counsel filed a response to Global’s memorandum in opposition, in which he asserted that Hynum did not have sufficient minimum contacts with Pennsylvania to make him subject to the jurisdiction of Pennsylvania courts. Following the formal briefing of the jurisdictional arguments, the Pennsylvania judge heard oral argument in her chambers on July 1, 1997. Hynum’s attorney was present appearing on Hynum’s behalf, and during the course of the proceedings, the judge invited the parties to supplement their previous memoranda. That same day, Global’s counsel submitted a letter to the judge supplementing its argument, stating that Hynum had sufficient minimal contacts to meet jurisdictional requirements and also stating that because Hynum made

no showing of compelling circumstances which would render the exercise of jurisdiction unreasonable, Global had met its burden of proof. Hynum responded by submitting a letter to the judge on September 3, 1997, contesting: the accuracy of Global’s letter regarding the locus of execution of a fee agreement; the locus of payments made; the allegation that Hynum traveled to Pennsylvania to meet with Global; and the allegation that he traveled to Pennsylvania in order to enter into a contract with Pennsylvania citizens.

¶4. After considering the parties’ jurisdictional arguments, the Pennsylvania judge entered an order on October 14, 1997, denying and dismissing Hynum’s objection to jurisdiction. The order also stated Hynum had twenty days to answer Global’s complaint. Hynum declined to further defend the Pennsylvania action and also failed to perfect any appeal of the court’s ruling within the Pennsylvania court system. Consequently, a default judgment was entered in favor of Global on July 16, 1998.

¶5. After the Pennsylvania judgment was enrolled in Forrest County, Hynum filed a motion objecting to the judgment and asking that it be stricken from the judgment roll, making the same arguments as he previously made in objection to the jurisdiction of Pennsylvania. Both Global and Hynum filed motions for summary judgment. Following the trial court’s granting of Hynum’s motion and denial of Global’s motion to reconsider, Global now appeals citing the following two issues for this Court’s consideration:

ISSUES

I. WHETHER THE TRIAL COURT ERRED IN PERMITTING RELITIGATION OF JURISDICTIONAL FACTS FULLY LITIGATED IN A COURT OF FOREIGN JURISDICTION.

II. WHETHER THE TRIAL COURT ERRED IN REFUSING TO AFFORD “FULL FAITH AND CREDIT” TO A FOREIGN JUDGMENT.

¶6. Because we conclude that the Forrest County Circuit Court erred in its grant of summary judgment in favor of Hynum, we reverse and remand to that court for re-enrollment of the Pennsylvania judgment.

STANDARD OF REVIEW

¶7. This Court employs a de novo standard of review on appeal from a summary judgment. Jenkins v. Ohio Cas. Ins. Co., 794 So.2d 228, 232 (Miss. 2001); Russell v. Orr, 700 So.2d 619, 622 (Miss. 1997).

¶8. The circuit court’s decision to decline application of the doctrine of res judicata is a legal rather than a factual determination. For questions of law, this Court’s standard of review is de novo. Saliba v. Saliba, 753 So.2d 1095, 1098 (Miss. 2000).

DISCUSSION

¶9. The question of whether the Pennsylvania court had jurisdiction over Hynum is crucial to the circuit court’s ability to enforce the judgment. Hynum challenged the Pennsylvania court’s jurisdiction by entering a special appearance, through Pennsylvania counsel, for the limited purpose of challenging personal jurisdiction. However, after hearing arguments on the jurisdictional issue, the Pennsylvania judge denied and dismissed Hynum’s challenge and ordered him to answer Global’s complaint within twenty days, which he did not do.

¶10. Global first argues that the Pennsylvania court’s decision on jurisdiction is binding and bars Hynum’s collateral attack of the judgment in Forrest County. Global contends that the doctrine of res judicata should be applied since the issue of whether Pennsylvania had in personam jurisdiction over Hynum

has already been decided. Hynum counters that Global misrepresented facts to the Pennsylvania judge in order to obtain jurisdiction.

¶11. Res judicata reflects the refusal of the law to tolerate a multiplicity of litigation. Little v. V&G Welding Supply, Inc., 704 So.2d 1336, 1337 (Miss. 1997). Res judicata bars all issues that might have been (or could have been) raised and decided in the initial suit, plus all issues that were actually decided in the first cause of action. Id. “The principles of res judicata apply to questions of jurisdiction as well as to other issues whether the questions relate to jurisdiction of the subject matter or jurisdiction of the parties.” Dep’t of Human Servs. v. Shelnut, 772 So.2d 1041, 1045 (Miss. 2000) (citing Insurance Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 102 S.Ct. 2099,72 L.Ed.2d 492 (1982)). In determining “whether the judgment amounts to res judicata on the question of the jurisdiction of the court which rendered it over the person of the respondent, [i]t is of no moment that the appearance was a special one expressly saving any submission to such jurisdiction. That fact would be important upon appeal from the judgment....” Baldwin v. Iowa State Traveling Men’s Ass’n, 283 U.S. 522, 524-25, 51 S. Ct. 517, 75 L. Ed. 1244 (1931).

¶12. To apply res judicata to jurisdictional issues, a prior challenge to the jurisdictional claim is required. A defendant has three options available:

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