O'Hare International Bank, a National Banking Association, Formerly Known as First National Bank of Park Ridge v. William E. Lambert

459 F.2d 328, 1972 U.S. App. LEXIS 9841
CourtCourt of Appeals for the First Circuit
DecidedMay 1, 1972
Docket71-1510
StatusPublished
Cited by34 cases

This text of 459 F.2d 328 (O'Hare International Bank, a National Banking Association, Formerly Known as First National Bank of Park Ridge v. William E. Lambert) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Hare International Bank, a National Banking Association, Formerly Known as First National Bank of Park Ridge v. William E. Lambert, 459 F.2d 328, 1972 U.S. App. LEXIS 9841 (1st Cir. 1972).

Opinion

BARRETT, Circuit Judge.

O’Hare International Bank of Chicago, Illinois, (Bank), appeals from a summary judgment granted by the United States District Court, Western District of Oklahoma, upon motion of the defendants-appellees (Guarantors). The Bank’s suit was brought for damages on an alleged breach of a guarantee agreement which the Bank contends inures to its benefit as a result of default in payments under an Aircraft Lease. Each of the Guarantors here are residents of the State of Oklahoma.

The Bank instituted an identical suit initially against the Guarantors on September 8, 1968, in the United States District Court for the Northern District of Illinois. That Court dismissed the Bank’s complaint for want of personal jurisdiction over the Guarantors, none *330 of whom were residents of Illinois. The Bank appealed. On February 9, 1971, the United States Court of Appeals, 7th Circuit, reversed and remanded, O’Hare International Bank v. Hampton, 437 F. 2d 1173. The 7th Circuit Court held that the Bank had made a prima facie ease that the Illinois long arm statute applied. Ill.Rev.Stat., Ch. 110, §§ 16,17 (1969). Noting that the guaranty was an integral part of the entire transaction because it was delivered in Illinois and contained a specific provision that “it shall be construed according to the law of the State of Illinois, in which State it shall be performed . . . ,” the Court held that while the plaintiff Bank must prove jurisdictional facts at trial, the guaranty document does have a substantial connection with the State of Illinois sufficient to satisfy the “minimum contacts” tests enunciated in Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958), McGee v. International Life Insurance Co., 355 U. S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957), and International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

During the pendency of its appeal from the dismissal order entered by the Illinois Federal District Court, the Bank commenced identical actions in the court below and in federal district courts in Arkansas and Texas. Personal service was obtained over each of the Guarantors in the states of their residence. The Bank undertook the proceedings in order to toll application of state statutes of limitations against its claims and cause of action, in the event that it should be finally determined that in per-sonam jurisdiction did not vest in Illinois.

Following pleadings, a pre-trial conference was held which included interrogatories which the Bank refused to answer. A motion to abate was filed by one of the Guarantors based upon the Illinois proceeding. The Bank on February 19, 1971, filed a motion to stay further proceedings “until a final determination is made of the personal jurisdiction over the defendants” in the United States District Court in Illinois to which remand -had been made by the United States Court of Appeals, 7th Circuit. Thereafter the Bank filed a motion to dismiss without prejudice. The lower court denied both of the Bank’s motions and proceeded to hear and grant Guarantor’s motion for summary judgment on April 30,1971.

At the April 30, 1971, hearing on the motion for summary judgment it was. brought to the Court’s attention that on April 23, 1971, the United States District Court for the Northern District of Illinois had issued an order restraining the Bank and the Guarantors from proceeding further in the instant cause. The trial judge recognized that the parties were confronted with conflicting court orders claiming jurisdiction over the parties and the identical cause of action. He observed, however, that instead of inviting a multiplicity of suits, his disposition of the motion for summary judgment would serve to resolve the entire litigation between the parties before him because there was no dispute in the suit before him relating to in per-sonam jurisdiction. The Court noted that the Bank did not appear on the merits relating to the motion for summary judgment. The Judge reasoned that if he had granted the Bank’s motion to stay proceedings that any determination by the Illinois Federal District Court on the issue of jurisdiction would likely be again appealed to the Court of Appeals. He did not interpret the opinion of February 4, 1971, as definitive on the “minimal contracts” required to satisfy jurisdiction under the Illinois long arm statute. We do not share the Trial Court’s concern in this regard. We interpret the opinion as holding that in personam jurisdiction vested in the Illinois Federal District Court subject only to proof of authenticity, execution, delivery, relevancy and materiality of jurisdictional documents involving the alleged transactions in support of the cause of action.

*331 It is well established in this Circuit that where the jurisdiction of a federal district court has first attached, that right cannot be arrested or taken away by proceedings in another federal district court. Cessna Aircraft Company v. Brown, 348 F.2d 689 (10th Cir. 1965); Chicago Pneumatic Tool Co. v. Hughes Tool Co., 180 F.2d 97 (10th Cir. 1950), cert. denied, 340 U.S. 816, 71 S. Ct. 46, 95 L.Ed. 600 (1950). Judge Breitenstein, speaking for this court in Cessna, supra, said:

“The rule is that the first federal district court which obtains jurisdiction of parties and issues should have priority and the second court should decline consideration of the action until the proceedings before the first court are terminated.” 348 F.2d at 692.

The fact that an injunction issues only to the parties before the court, and not to the court, is no evasion of the difficulties that result from an attempt to exercise that power over a party who is a litigant in another forum where the judgment sought is in personam. Donovan v. City of Dallas, 377 U.S. 408, 84 S.Ct. 1579, 12 L.Ed.2d 409 (1964); Baltimore & Ohio Railroad Co. v. Kepner, 314 U.S. 44, 62 S.Ct. 6, 86 L.Ed. 288 (1941); Peck v. Jenness, 7 How. 612, 12 L.Ed. 841 (1849). An exception has been made in proceedings in rem or quasi in rem. The rule is that in such cases the state or federal court having custody of the property has exclusive jurisdiction to proceed. Princess Lida of Thurn and Taxis v. Thompson, Trustees, 305 U.S. 456, 59 S.Ct. 275, 83 L.Ed. 285 (1939).

Except for the self-imposed rule of comity announced in Cessna, supra, the general rule is that where the judgment sought is strictly in personam, courts having concurrent jurisdiction may proceed with the litigation at least until judgment is obtained in one of them which may be set up as res judicata in the other. Princess Lida of Thurn and Taxis v. Thompson, supra.

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Bluebook (online)
459 F.2d 328, 1972 U.S. App. LEXIS 9841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohare-international-bank-a-national-banking-association-formerly-known-ca1-1972.