Glumina Bank v. D.C. Diamond Corporation

527 S.E.2d 775, 259 Va. 312, 2000 Va. LEXIS 55
CourtSupreme Court of Virginia
DecidedMarch 3, 2000
DocketRecord 991042
StatusPublished
Cited by21 cases

This text of 527 S.E.2d 775 (Glumina Bank v. D.C. Diamond Corporation) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glumina Bank v. D.C. Diamond Corporation, 527 S.E.2d 775, 259 Va. 312, 2000 Va. LEXIS 55 (Va. 2000).

Opinion

JUSTICE COMPTON

delivered the opinion of the Court.

In this appeal of a default judgment in a contract action against a nonresident defendant, we must determine whether the trial court properly entered the judgment.

On October 7, 1998, appellees D. C. Diamond Corporation and Karlo Milic filed in the clerk’s office of the court below a motion for judgment against appellant Glumina Bank d.d., for breach of contract. The plaintiffs sought recovery of $460,000 plus attorney’s fees and interest.

The plaintiffs alleged that Diamond is a Virginia corporation engaged in the business of real estate development and that Milic is an alien resident of the Commonwealth but a citizen of Croatia. The plaintiff further alleged that defendant is a bank located in Zagreb, Croatia.

The plaintiffs also alleged that on two occasions in June 1998, acting through Milic, they contracted with defendant “to transfer, deliver, and supply” to the corporation’s bank account in Manassas a total of $460,000 from cash funds delivered in American dollars to defendant from the sale of real estate. The plaintiffs further alleged that defendant “failed to transfer, deliver, and supply the funds as promised.”

The plaintiffs also alleged that on “several occasions prior to” June 1998, “pursuant to contracts” between the plaintiffs and defen *315 dant, the defendant “had transferred, delivered, and supplied” to the corporation’s Manassas bank account funds received in Croatia from Milic.

Additionally, plaintiffs alleged that when the contracts were entered into on June 19 and 29, 1998, Milic and defendant “clearly and definitely intended” that the corporation be “a direct beneficiary of those contracts,” and that the corporation “was and is both a direct beneficiary and a third party beneficiary of those contracts.”

Also, plaintiffs alleged that they had made demand upon defendant “to honor its contractual obligations to supply the funds” to the corporation in Virginia but defendant “has failed to do so and has refused to refund the funds to Milic.”

Finally, plaintiffs alleged that the trial court could exercise personal jurisdiction over defendant pursuant to Code § 8.01-328.1 (A)(2) (“court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action arising from the person’s . . . [contracting to supply services or things in this Commonwealth . . . .”).

The plaintiffs filed with the motion for judgment an affidavit for service of process on the Secretary of the Commonwealth as statutory agent for the nonresident defendant, as authorized by Code § 8.01-329(B). As required, the affidavit set forth the last known address of the defendant in Croatia.

In a Certificate of Compliance, the Secretary of the Commonwealth reported to the trial court that service of the notice of motion for judgment was made on her on October 13, 1998, and that the suit papers were forwarded by registered mail to defendant at the Croatian address on November 2, 1998. Service was effective on November 10, 1998, when the Certificate of Compliance was filed in the circuit court. Code § 8.01-329(C).

The defendant failed to file a pleading in response within 21 days after service of process; therefore, it was in default. Rule 3:5; Rule 3:17.

On December 14, 1998, a paper labeled “Pleading on Motion for Judgement” was lodged with the clerk of the trial court. It was signed “Glumina Bank by Attorney . . . Mladen Simundic,” giving a Croatian address. Defendant’s counsel of record on appeal correctly admits that this “responsive pleading” was not filed by an attorney authorized to practice law in Virginia and, as such, is a “nullity and should be stricken.”

*316 On December 22, 1998, another Certificate of Compliance was filed in the trial court by the Secretary of the Commonwealth dated five days earlier. That document included another affidavit executed by plaintiffs’ attorney to support service of process of a “Praecipe” upon the nonresident defendant. The Certificate reported: “On Dec 17 1998, papers described in the Affidavit were forwarded by Fed Ex mail, return receipt requested, to the party designated to be served with process in the Affidavit.” The praecipe served on defendant through the Secretary of the Commonwealth was a notice and motion filed in the clerk’s office below on December 7, 1998, returnable December 18, 1998, for entry of a default judgment.

The hearing on the motion for default judgment was continued to February 19, 1999. On that day, counsel for the plaintiffs appeared in support of the motion. There was no appearance by or on behalf of the defendant. After a brief hearing, at which only an interpreter testified, the court entered a default judgment against the defendant in the amount of $460,000 plus interest and attorney’s fees.

Three days later, on February 22, 1999, defendant, through a Virginia attorney, filed a “Special Appearance, Motion to Quash Service and Objection to Jurisdiction,” as well as a “Notice and Motion to Set Aside Default Judgment.” Following a March 5, 1999 hearing on the several motions, at which counsel for the plaintiffs and counsel for the defendant appeared, the court denied the motions.

The defendant appeals and contends the trial court erred in entering the default judgment. It argues that the trial court lacked personal jurisdiction over defendant, and that the service of process of the notice of motion for judgment and the praecipe through the Secretary of the Commonwealth was improper because none of the bases for personal jurisdiction under Code § 8.01-328.1 “have been alleged or proven.” These contentions are meritless.

Of course, any money judgment rendered without personal jurisdiction over the defendant is void. Finkel Outdoor Prods., Inc. v. Bell, 205 Va. 927, 931, 140 S.E.2d 695, 698 (1965). But as we already have said, Code § 8.01-328.1(A)(2), a part of Virginia’s long-arm statute dealing with the exercise of in personam jurisdiction over nonresidents, permits courts of the Commonwealth to “exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action arising from the person’s . . . [contracting to supply services or things in this Commonwealth.”

A “person,” as used in the foregoing statute, includes a “commercial entity, whether or not a citizen or domiciliary of this *317 Commonwealth and whether or not organized under the laws of this Commonwealth.” Code § 8.01-328. Thus, nonresident defendant Glumina Bank qualifies as a “person” under the statute.

“The function of our long-arm statute is to assert jurisdiction over nonresidents who engage in some purposeful activity in Virginia, to the extent permissible under the Due Process Clause of the Constitution of the United States.” Nan Ya Plastics Corp. U.S.A. v. DeSantis, 237 Va. 255, 259, 377 S.E.2d 388, 391, cert. denied, 492 U.S. 921 (1989). Accord Peninsula Cruise, Inc. v. New River Yacht Sales, Inc., 257 Va.

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

Related

McCulley v. Brooks & Co. General Contractors, Inc.
816 S.E.2d 270 (Supreme Court of Virginia, 2018)
Reed v. Beverly Hills Porsche
307 F. Supp. 3d 494 (W.D. Virginia, 2018)
Lucido v. Maxwell
93 Va. Cir. 415 (Fairfax County Circuit Court, 2016)
Roy M. Carrithers v. Kimberly A. Harrah
762 S.E.2d 402 (Court of Appeals of Virginia, 2014)
TalentHunter, L.L.C. v. Southern Co. Services
87 Va. Cir. 363 (Fairfax County Circuit Court, 2014)
D. W. Boyd Corp. v. Coon
86 Va. Cir. 509 (Norfolk County Circuit Court, 2013)
Modular Wood Systems, Inc. v. World Trade Group, L.L.P.
77 Va. Cir. 403 (Henrico County Circuit Court, 2009)
Cassen v. Slater
75 Va. Cir. 327 (Chesapeake County Circuit Court, 2008)
Azzure Denim, L.L.C. v. E & J Lawrence Corp.
69 Va. Cir. 485 (Norfolk County Circuit Court, 2006)
Davey Tree Expert Co. v. Jackson
69 Va. Cir. 350 (Fairfax County Circuit Court, 2005)
Massey Energy Co. v. United Mine Workers of Am.
69 Va. Cir. 118 (Fairfax County Circuit Court, 2005)
Cordova v. Alper
64 Va. Cir. 87 (Fairfax County Circuit Court, 2004)
Ronsdorf v. Raiffeisenbank Dornbirn
63 Va. Cir. 499 (Roanoke County Circuit Court, 2003)
Malcolm v. Esposito
63 Va. Cir. 440 (Fairfax County Circuit Court, 2003)
Turnbull v. Desrosier
61 Va. Cir. 375 (Virginia Circuit Court, 2003)
Ash-Will Farms, L.L.C. v. Leachman Cattle Co.
61 Va. Cir. 165 (Virginia Circuit Court, 2003)
Yu v. Signet Bank/Virginia
126 Cal. Rptr. 2d 516 (California Court of Appeal, 2002)
Virginia Property & Casualty Insurance Guaranty Ass'n v. Renick
59 Va. Cir. 315 (Virginia Circuit Court, 2002)
iDefense, Inc. v. Dick Tracy Group
58 Va. Cir. 138 (Virginia Circuit Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
527 S.E.2d 775, 259 Va. 312, 2000 Va. LEXIS 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glumina-bank-v-dc-diamond-corporation-va-2000.