Rockwell International Corp. v. KND Corp.

83 F.R.D. 556, 1979 U.S. Dist. LEXIS 10766
CourtDistrict Court, N.D. Texas
DecidedJuly 27, 1979
DocketCiv. A. Nos. CA 3-77-0866-F, CA 3-77-0868-F
StatusPublished
Cited by10 cases

This text of 83 F.R.D. 556 (Rockwell International Corp. v. KND Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rockwell International Corp. v. KND Corp., 83 F.R.D. 556, 1979 U.S. Dist. LEXIS 10766 (N.D. Tex. 1979).

Opinion

ORDER AND MEMORANDUM OPINION

ROBERT W. PORTER, District Judge.

After hearing on April 21, 1978, this Court awarded default judgment in favor of Plaintiff Rockwell International Corporation (“Rockwell”) against KND Corporation, Defendant in Civil Action No. 3-77— 0866-F. Judgment by default was awarded the same day as to the defendants in Civil Action No. 3—77-0868-F: Windham Broadcasting Group, Kenneth N. Dawson, Randall Mayer, and XLS Broadcasting Corporation.

All defendants subsequently filed motions for relief from judgment pursuant to Rule 60(b), Federal Rules of Civil Procedure. As the sole basis for their motions, the Defendants claim that the judgments entered against them are void because the Court lacked jurisdiction over their persons. The Court held a hearing on the jurisdictional issue; based on the facts adduced at this hearing and on the affidavits and relevant [559]*559memoranda filed by the parties, I find that the Defendants’ conduct in both cases display sufficient minimum contacts with the State of Texas to fairly permit the exercise of in personam jurisdiction by this Court. Consequently, I deny Defendants’ motions for relief from judgment.

I Rule 60(b)

Rockwell has attacked the propriety of Defendants’ challenge to the jurisdiction over their persons. It urges that the Court find that the prior defaults by Defendants created a bar to their later asserting a Rule 60(b) claim of no personal jurisdiction, and reasons that failure to file a timely Rule 12(b) motion renders any resulting default judgment inviolate against later challenge on this ground.

Rule 60(b)(4) provides the procedural rule granting relief from void judgments. Within this rule a prior judgment may be labeled void where the court granted it without jurisdiction over the parties. In re Four Seasons Securities Laws Litigation, 502 F.2d 834 (9th Cir. 1974). In determining whether relief should be granted, the court is without discretion;1 its sole function is to decide whether the earlier judgment is void because the court lacked jurisdiction over the parties. Jones v. Watts, 142 F.2d 575 (5th Cir. 1974). Rockwell’s argument of waiver does not require much discussion in the face of the rule’s language permitting relief from void judgments.2 It is well established that, in situations where the defendants have failed to answer and thus made no challenge to personal jurisdiction prior to default judgment being entered against them, they may move through Rule 60 to challenge the validity of a judgment. See 11 Wright & Miller, Federal Practice & Procedure § 2862 (Supp. 1979). See also, Misco Leasing, Inc. v. Vaughn, 450 F.2d 257 (10th Cir. 1971).3

[560]*560Having concluded that the Defendants’ motions may be raised by this proceeding, I consider the merits of their challenge.

II. In Personam Jurisdiction

Rockwell sold certain radio and broadcasting equipment for use in the Defendants’ radio stations. A dispute later arose over the agreements, whereupon Rockwell invoked the diversity jurisdiction of this Court to sue the Defendants for non-payment of amounts allegedly due.

Collins Radio Group (“Collins”) is a division of Rockwell, a Delaware corporation. Collins has its headquarters in Dallas County, Texas. Each Defendant is a nonresident of or corporation foreign to the State of Texas. None maintains a place of business in this state or has designated any other as its agent for purposes of service of process.

All defendants were served pursuant to the Texas long-arm statute, article 2031b, Tex.Rev.Civ.Stat.Ann. (Vernon 1964). That provision sets forth the rules governing amenability to and method of service of process on foreign corporations and on nonresidents. The Texas statute is made applicable to service in federal courts by Rules 4(d)(7) and 4(e) of the Federal Rules of Civil Procedure. It is to the aspect of amenability to service of process that the Defendants’ challenges are directed. They claim that service of process was unauthorized because each lacked required contacts with the State of Texas. The manner of service of process is not here attacked.4

A. Facts

Rockwell points to numerous contacts between the State of Texas and these Defendants to permit suit against them in this forum. The jurisdictional facts as to each group of defendants are set forth separately.

1. The Windham Defendants—CA 3-77-0868-F Windham is a partnership organized and existing in the State of Connecticut. Defendants Dawson and Mayers are partners of Windham, and each is a resident of Connecticut. The first contract forming the basis for this action against them was solicited in early 1975 by Collins through its New York salesman, Mr. Art Silver. The proposal was embodied in a form prepared by Collins. The form was signed by Dawson in his capacity as general partner of Windham. By affidavit, Dawson declared that all dealings with Mr. Silver took place in Connecticut and that any agreements between any of the Defendants and Collins occurred with Mr. Silver exclusively, all taking place in the State of Connecticut.

The first agreement, accompanied by a check representing a 25% down payment on the purchase price of the equipment, was given to Mr. Silver, who returned both to Collins’ Dallas office. Like procedures were utilized in March 1975 for the execution of a security agreement and subsequent amendment: through its salesman, Collins [561]*561prepared and delivered the documents to Windham and, after their execution by Dawson as partner, forwarded them to the Dallas office. In addition, some correspondence from Collins’ Dallas office was directed to the Defendants during this period, and it appears that a Windham employee made several telephone calls regarding the agreement.

The terms of the agreement included a schedule of remaining payments, and a provision that payments were to be made to Collins Radio Company at its Dallas, Texas office.5 Subsequent statements and invoices from Rockwell addressed to Windham, however, directed that payments were to be made to it at P.O. Box 93078, Chicago, Illinois 60670.

A second contractual provision asserted that delivery of the equipment purchased by the Defendants would be f. o. b. the place of location of the Collins factory making the shipment. The contract did not indicate that delivery would take place in Texas, but rather left the election of place of shipment to Collins. Some equipment under the proposal, produced and assembled by Collins in Texas, was shipped to the Defendants f. o. b. Richardson, Texas.

The contract did not specifically note that manufacture or assembly would occur in Texas.

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Cite This Page — Counsel Stack

Bluebook (online)
83 F.R.D. 556, 1979 U.S. Dist. LEXIS 10766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockwell-international-corp-v-knd-corp-txnd-1979.