Graciette v. Star Guidance, Inc.

66 F.R.D. 424, 19 Fed. R. Serv. 2d 1429, 1975 U.S. Dist. LEXIS 13829
CourtDistrict Court, S.D. New York
DecidedFebruary 14, 1975
DocketNo. M-18-302 (Judgment #74,677)
StatusPublished
Cited by14 cases

This text of 66 F.R.D. 424 (Graciette v. Star Guidance, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graciette v. Star Guidance, Inc., 66 F.R.D. 424, 19 Fed. R. Serv. 2d 1429, 1975 U.S. Dist. LEXIS 13829 (S.D.N.Y. 1975).

Opinion

OPINION

TYLER, District Judge.

Plaintiff brought an action against defendant Carlson Wade in 1971 in the United States District Court for the Central District of California, Los Angeles Division, on the grounds of copyright infringement, unfair competition, conversion, and quantum meruit. Although served with process in mid-1972, Wade did not appear in the California action, and plaintiff secured a default judgment against him in or about March, 1973. In November, 1974, plaintiff registered that judgment with the Clerk of this court and caused a writ of execution to issue thereon. In response, Wade moved, pursuant to Rule 60(b)(4), F.R.Civ.P., for an order vacating the California judgment as void and setting aside any proceedings or actions taken under said judgment. Two issues are thus presented for resolution: has this court power to grant a Rule 60(b)(4) motion for relief from a default judg[426]*426ment registered in this district, and if so, did the District Court in California have in personam jurisdiction of Wade?

I. Jurisdiction to Grant Rule 60(b) Motion

As a void judgment is a legal nullity, it may be challenged not only directly but also by collateral attack in a proceeding in any court where that judgment’s validity comes in issue.1 Where a default judgment was attacked as void for lack of jurisdiction, the Court of Appeals for this circuit has permitted it to be challenged through a separate habeas corpus proceeding, United States ex rel. Stabler v. Watkins, 2 Cir., 168 F.2d 883 (1948), though one year later a similar collateral attack was held impermissible where the original court had jurisdiction, United States ex rel. Aigner et al. v. Shaughnessy, 2 Cir., 175 F.2d 211 (1949). The occasion of filing an Ohio judgment by confession on cognovit notes with the United States District Court for the Western District of New York was held to give that court personal jurisdiction of the judgment creditor to entertain an independent action to challenge the Ohio judgment on the grounds of fraud in procuring the notes. Hadden v. Rumsey Products, 196 F.2d 92, 95, 96 (2d Cir. 1952). Although the Court of Appeals did not decide whether the Ohio judgment could be attacked by a motion under Rule 60(b) in the federal court sitting in New York, it would appear reasonable that an event sufficient to confer personal jurisdiction for an independent action should be sufficient to confer such jurisdiction for a 60(b) motion raising the same issues.2 Here and in Hadden, the original court was not presented with and hence did not rule upon the issue asserted collaterally. Alleged lack of jurisdiction, like a fraud upon the court, renders the original judgment void and should equally be a sufficient basis for such jurisdiction.

II. Personal Jurisdiction of the California Court over Wade

It is clear and undisputed that the jurisdictional issues must be resolved according to 28 U.S.C. § 1400(a);3 the Federal Rules of Civil Procedure, Pizzano v. Knowles & Co., 37 F.Supp. 118 (D.Mass.1941); and the California “long-arm” statute (Code of Civ.Proc. § 410.-10), see Droke House Publishers, Inc. v. Aladdin Distributing Corp., 352 F.Supp. 1062 (N.D.Ga.1972). § 410.10 of the California Code provides that:

“A court of this state may exercise jurisdiction on any basis not inconsistent with the Constitution of this state or of the United States.”

The Comment by the Judicial Council of California which accompanies this section discusses eleven possible bases of jurisdiction of individuals, two of which bases—doing business in the state, and [427]*427causing an effect in the state by an act or omission elsewhere—plaintiff argues are applicable here. Behind all of these technical tests of jurisdiction, of course, lies the due process requirement of reasonableness is the nature of defendant’s acts and their effects and of his relationship to the state such that the exercise of jurisdiction over him is reasonable? See Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958); International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

The uncontested facts relevant to the jurisdictional issue are these: Plaintiff is a resident of California and there wrote Astrology and Your Sex Life, the copyrighted book upon which she bases this action. Wade is a freelance writer who resides in New York City and conducts all of his business activity in the State of New York, although his books, and periodicals containing articles written by him, are sold in many states, including California. For the lump sum of $45, Wade sold outright the article upon which the California action was based, without reservation of copyright or other interest, to Star Guidance, Inc. (“Star”), a New York-based corporation, in New York City. Subsequently, Star had the article copyrighted and published it in Star’s magazine, Your Personal Astrology, copies of which were sold in California. Neither party argues that Star acted as an agent for Wade in publishing and selling the magazine, a theory which appears meritless in any event in light of the unconditional nature of Wade’s sale to Star and Wade’s status as a free-lance writer. This court, therefore, need not consider whether the magazine sales or other activities of Star were sufficient to give the California court in personam jurisdiction over Star, for such jurisdiction would not, by itself, give the court jurisdiction over Wade.

Plaintiff argues, first, that the California District Court had in personam jurisdiction of Wade through the quantum meruit claim, because “ . . .by appropriating plaintiff’s services which were performed in California [i.e. plaintiff's work in writing the book which was allegedly plagiarized by Wade], Wade at that time impliedly agreed to pay plaintiff the reasonable value for the work, and such implied agreement . constituted doing business in the State of California.” Concededly a quantum meruit claim may be considered a claim “on the contract” for purposes of jurisdiction, but even plaintiff does not contend that Wade made the “contract” in California. In Hanson v. Denckla, supra, the Supreme Court stated:

“The unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact with the forum State. The application of that rule will vary with the quality and nature of the defendant’s activity, but it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” 357 U.S. at 253, 78 S.Ct. at 1239.

In Belmont Industries, Inc. v. Superior Ct. of Stanislaus Cty., 31 Cal.App.3d 281, 107 Cal.Rptr.

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Bluebook (online)
66 F.R.D. 424, 19 Fed. R. Serv. 2d 1429, 1975 U.S. Dist. LEXIS 13829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graciette-v-star-guidance-inc-nysd-1975.