United Bank of Skyline, National Ass'n v. Fales

405 N.W.2d 416, 1987 Minn. LEXIS 756
CourtSupreme Court of Minnesota
DecidedMay 8, 1987
DocketC8-86-549
StatusPublished
Cited by6 cases

This text of 405 N.W.2d 416 (United Bank of Skyline, National Ass'n v. Fales) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Bank of Skyline, National Ass'n v. Fales, 405 N.W.2d 416, 1987 Minn. LEXIS 756 (Mich. 1987).

Opinion

YETKA, Justice.

This appeal comes from a court of appeals’ decision affirming a lower court’s denial of appellant’s motion for relief from a summary judgment entered in Denver, Colorado, and docketed in Blue Earth County, Minnesota. We affirm.

This litigation began when respondent United Bank of Skyline filed a civil suit in Colorado to collect on loans made to appellant Arthur J. Petrie, a resident of Minnesota, and his partner, David Fales. Petrie and Fales had used the money to develop real estate located in Colorado. A chronology of the ensuing procedural events is adapted from the findings of the Blue Earth County District Court, which heard this matter.

October 19,1983 — Arthur J. Petrie is served with a summons and complaint in the main action venued in Denver County, Colorado.

December 2,1983 — Petrie enters an appearance by his attorney, Russell E. Vigil.

December 13,1983 — Clerk's default entered against Petrie for his failure to plead or otherwise defend.

February 8, 1984 — Court judgment entered against Petrie with notice to Vigil and successor attorney, the Powers firm.

February 10,1984 — Vigil withdraws as counsel for Petrie and Powers firm appears for Petrie with permission of the court.

February 10,1984 — Petrie moves to set aside clerk’s default judgment and court judgment and extend time to answer.

March 22,1984 — Court orders clerk’s default and court judgment set aside, granting Petrie time to answer.

April 9,1984 — Petrie files answer.

*417 May 8,1984 — Order setting trial for July 10 and 11, 1985.

January 17,1985 — Petrie moves to substitute Vigil for Powers as his attorney.

January 25,1985 — Court order authorizes substitution of attorneys.

July 8, 1985 — Vigil files ex parte motion to continue trial because of his need for medical treatment.

July 8,1985 — Court enters ex parte order continuing trial and ordering Vigil to reset case for trial when counsel ready.

July 26,1985 — United Bank moves for summary judgment on attached affidavits, documents and briefs and serves same on Vigil by mail on July 26,1985, addressed to his last known address as set out in the pleadings and other documents in the file.

July 81,1985 — Motion and accompanying documents mailed on July 26,1985, returned to United Bank by Post Office Department marked “Forwarding Order Expired.” United Bank checks Supreme Court Registrar of Attorneys, discovers new address for Vigil and makes service by mail on July 81, 1985.

November 15,1985 — Court order sets hearing on United Bank's motion for summary judgment for December 10,1985, serving notice on Vigil by mail to his old address.

December 10,1985 — Hearing on summary judgment held; neither Petrie nor his counsel appears. Pe-trie’s counsel claimed later that he did not receive notice of the hearing, that he had been misled by a telephone inquiry to the clerk of court as to whether or not the matter was to be submitted on affidavits or by hearing, and that he had been advised that it would be by hearing. He claims he-did not file affidavits at that time because he expected to file them at the time of the hearing. The court granted the motion and ordered judgment entered.

December 10,1985 — United Bank serves order, judgment and decree on Vigil by mailing the same to both his new and old addresses.

December 11,1985 — Judgment entered.

December 15,1985 _Petrie moves for vacation of summary judgment and hearing on motion.

December 27,1985 — Notice of hearing date of January 22, 1986, served by Petrie on United Bank.

January 28,1986 — Court enters order denying motion for relief from judgment.

February 7,1986 — United Bank registers Colorado judgment in Blue Earth County, Fifth Judicial District, and the same is docketed against Petrie in the amount of $75,056.

March 10,1986 — Petrie serves notice and motion for relief from judgment entered in Blue Earth County. Hearing on Petrie's motion held in Windom, Minnesota, on March 20,1986.

Petrie did not appeal the judgment entered in Colorado or seek review of the Colorado court’s order denying his motion for relief from the judgment. The District Court of Blue Earth County found that Petrie had a reasonable excuse for not appearing at the summary judgment hearing and might have a substantial defense on the merits of the underlying action. However, the court denied Petrie’s motion for relief from the judgment, stating that Pe-trie’s remedy was to appeal the Colorado trial court’s refusal to vacate the judgment in Colorado. The court of appeals affirmed. United Bank of Skyline v. Fales, 395 N.W.2d 131 (Minn.App.1986).

The sole question of this case is whether Minnesota should enforce the judgment entered in Colorado against Petrie. In connection with its judgment, the Colorado trial court entered two distinct decisions: one granting summary judgment against Petrie for the amount of the debt, the second denying Petrie’s motion to vacate the judgment because of his attorney’s failure to receive notice of the summary judgment hearing. Petrie would have us independently determine whether the summary judgment was proper under the circumstances. However, we find the more salient issue to be what weight this court must give to the Colorado court’s decision not to vacate its own judgment.

Enforcement of foreign decisions in Minnesota’s courts is guided by article IV, section 1 of the United States Constitution, which states: “Full faith and credit shall be given in each state to the public acts, records and judicial proceedings of every other state.” In addressing the issue of collateral attacks on foreign judgments for alleged jurisdictional defects, the United States Supreme Court held that “a judgment is entitled to full faith and credit— even as to questions of jurisdiction — when the second court’s inquiry discloses that those questions [of jurisdiction] have been fully and fairly litigated and finally decided in the court which rendered the original judgment.” Durfee v. Duke, 375 U.S. 106, 111, 84 S.Ct. 242, 245, 11 L.Ed.2d 186 (1963). In other words, a court need not accept the judgment of a foreign court if that court lacked the jurisdiction to render the judgment. However, if that same foreign court already fully and fairly addressed the contention that it lacked jurisdiction, then its decision on that point must be given effect. See also Restatement (Second) of Judgments § 10(2) (1982) (“A determination of an objection to notice or territorial jurisdiction precludes the party *418 who asserted it from litigating either contention in subsequent litigation”).

In previous cases, this court’s analysis of attacks on foreign judgments has followed the principles enunciated in Durfee. In Imperial Skyliner Auto-Wash Sales Corp. v. Whinnery, 301 Minn.

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Bluebook (online)
405 N.W.2d 416, 1987 Minn. LEXIS 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-bank-of-skyline-national-assn-v-fales-minn-1987.