National Homes Corp. v. Totem Mobile Home Sales, Inc.

682 P.2d 439, 140 Ariz. 434, 1984 Ariz. App. LEXIS 532
CourtCourt of Appeals of Arizona
DecidedFebruary 21, 1984
Docket1 CA-CIV 6223
StatusPublished
Cited by18 cases

This text of 682 P.2d 439 (National Homes Corp. v. Totem Mobile Home Sales, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Homes Corp. v. Totem Mobile Home Sales, Inc., 682 P.2d 439, 140 Ariz. 434, 1984 Ariz. App. LEXIS 532 (Ark. Ct. App. 1984).

Opinion

OPINION

JACOBSON, Chief Judge.

This appeal presents the issue of whether a defendant who obtains a dismissal with prejudice of plaintiffs’ complaint thereby waives the defense of insufficiency of process in connection with a cross claim arising out of the same transaction.

This action was originated on August 16, 1979 by purchasers of an allegedly defective mobile home. Joined as defendants in that action were appellee, Totem Mobile Home Sales, Inc. (Totem), as the seller of the mobile home and “National Mobile Homes” as manufacturer of the mobile home. In fact, “National Mobile Homes” is the business name of Sportscraft Homes, Inc., a Florida corporation which is a wholly-owned subsidiary of National Homes Corporation. 1 Although service was ostensibly only made upon “National Mobile Homes”, National Homes filed an answer to the complaint defending both on the *436 merits of plaintiffs’ complaint and specifically alleging that in personam jurisdiction was lacking because of lack of service of process, defective service of process, and insufficient return of service of process. Subsequently, the plaintiffs amended their complaint to name “Sportscraft dba National Mobile Homes.” Service of the amended complaint and alias summons directed against Sportscraft was mailed to the attorney who had appeared for National Homes.

Sportscraft filed an answer clarifying its corporate name, denying liability and again raised the same defenses of insufficiency of service of process as raised by National Homes.

Subsequently, Totem filed a cross-claim against Sportscraft and pursuant to Rule 5(c), Arizona Rules of Civil Procedure, effected service of its cross-claim on the attorney who had appeared for Sportscraft in the action. Totem’s cross-claim was later amended to include National Homes. The cross-defendants answered the cross-claim on the merits, but again raised the affirmative defense of insufficiency of service of process.

The cross-defendants’ affirmative defenses of insufficiency of process were not ruled on prior to the trial on plaintiffs’ complaint. In the meantime, discovery was conducted by the parties, with both cross-defendants seeking and receiving affirmative relief from the trial court in connection with their discovery efforts.

The matter was set for trial on February 25, 1981. On the eve of trial, the cross-defendants settled their dispute with the plaintiffs by paying them a sum of money. The settlement took the form of a stipulation to dismiss “with prejudice” plaintiffs’ action against these two cross-defendants. The attorney for cross-defendants presented the stipulation of the trial court, which entered an order dismissing plaintiffs’ claim against the cross-defendants with prejudice. At this time, cross-defendants’ jurisdictional defenses had not been ruled upon.

Since the plaintiffs did not appear on the day of trial, the only remaining issue for disposition by the trial court was Totem’s cross-claim against the cross-defendants. The cross-defendants orally moved to dismiss the cross-claim on the basis of insufficiency of service of process and therefore lack of’in personam jurisdiction over them. The trial court denied the motion on two bases: (1) that service of process was legally sufficient, and (2) that the cross-defendants “were estopped to deny the [cjourt’s jurisdiction by virtue of the fact that they had obtained a judgment in their favor in connection with the claim by [the original plaintiffs].”

Subsequently, the trial court entered judgment in favor of Totem on its cross-claims against both cross-defendants and they have timely appealed. The sole issue raised on appeal is whether the trial court obtained in personam jurisdiction over the cross-defendants.

As a preliminary matter, Totem has raised the issue that the cross-defendants failed to provide a transcript on appeal and therefore that transcript must be presumed to contain evidence in support of the trial court’s judgment. We need not reach this issue as the record on appeal is sufficient for this court to determine the matter upon the issue we feel is dispositive.

We prefer to dispose of this appeal on the question of whether the actions of cross-defendants in the course of defending plaintiffs’ action in the trial court waived any defect in service. Or more directly put, in spite of defective service, did the cross-defendants subject themselves to the jurisdiction of the trial court?

The cross-defendants argue that under the provisions of Rule 12, Arizona Rules of Civil Procedure, they are not precluded from defending on the merits and at the same time attacking in personam jurisdiction on the basis of insufficiency of service of process. In particular, they point to the provision in Rule 12(b), which provides:

No defense or objection is waived by being joined with one or more defenses or objections in a responsive pleading or motion.

*437 and, the provisions of Rule 12(i), which provide:

A party waives all defenses and objections which he does not present either by motion as hereinbefore provided, or, if he has made no motion in his answer or reply, except
(1) A defense of ... insufficiency of process ... is waived (A) if omitted from a motion in the circumstances described in subdivision (h), or (B) if it is neither made by motion under this rule nor included in a responsive pleading____

Since the defense of insufficiency of process was raised by the cross-defendants’ answer to both the plaintiffs’ complaint and the cross-claim, it is urged that this defense cannot be waived. As a matter of pleading, the cross-defendants are absolutely correct. As stated in Kadota v. Hosogai, 125 Ariz. 131, 139, 608 P.2d 68, 76 (App. 1980):

The adoption of Rule 12, Arizona Rules of Civil Procedure, established that the distinction between general appearances and special appearances was to be abolished.

However, the Rules of Civil Procedure do not address the issue of, aside from waiver by pleading or lack thereof, what action or inaction in the litigation itself may subject a party to jurisdiction of the trial court even in the face of a defect in process. 2 To answer this problem, we must inquire whether a party, by its actions in the conduct of the litigation, has manifested an intent to be subject to the jurisdiction of the court, even though it has raised jurisdictional defects. The general principle is stated in Austin v. State ex rel. Herman, supra, 10 Ariz.App. at 477, 459 P.2d at 756:

[A]n appearance is always a matter of intention and is not to be inferred, except as the result of acts from which an intent may be properly inferred, [citations omitted]. Broadly stated, any action on the part of defendant, except to object to the jurisdiction over his person, which recognizes the case as in court, will constitute a general appearance.

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Cite This Page — Counsel Stack

Bluebook (online)
682 P.2d 439, 140 Ariz. 434, 1984 Ariz. App. LEXIS 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-homes-corp-v-totem-mobile-home-sales-inc-arizctapp-1984.