Pennoyer v. Neff involved a dispute over ownership of land purchased at a sheriff's sale to satisfy a default judgment against Neff, a non-resident of Oregon. The default judgment was issued after Neff failed to respond to a lawsuit against him that was served only by publication in a newspaper, not personal service. The Supreme Court held that (1) judgments against non-residents based solely on constructive service like publication are invalid and (2) a court cannot exercise jurisdiction over a non-resident based on property purchased after the judgment, since the court had no jurisdiction over the non-resident at the time of the original suit.
Pennoyer v. Neff involved a dispute over ownership of land purchased at a sheriff's sale to satisfy a default judgment against Neff, a non-resident of Oregon. The default judgment was issued after Neff failed to respond to a lawsuit against him that was served only by publication in a newspaper, not personal service. The Supreme Court held that (1) judgments against non-residents based solely on constructive service like publication are invalid and (2) a court cannot exercise jurisdiction over a non-resident based on property purchased after the judgment, since the court had no jurisdiction over the non-resident at the time of the original suit.
Pennoyer v. Neff involved a dispute over ownership of land purchased at a sheriff's sale to satisfy a default judgment against Neff, a non-resident of Oregon. The default judgment was issued after Neff failed to respond to a lawsuit against him that was served only by publication in a newspaper, not personal service. The Supreme Court held that (1) judgments against non-residents based solely on constructive service like publication are invalid and (2) a court cannot exercise jurisdiction over a non-resident based on property purchased after the judgment, since the court had no jurisdiction over the non-resident at the time of the original suit.
Title and Citation: Pennoyer v. Neff, 95 U.S. 714 (1877)
Identities of Parties: (P) Pennoyer bought (D) Neff land from Mitchell (his former lawyer).
Procedural History: D sued P to recover his land in the Circuit Court, where it ruled in favor of the D. The P then appealed the decision of the Circuit Court to the US Supreme Court by petition for write of error.
Facts: Mitchell the D formed lawyer, sued him in Oregon state court for unpaid legal fees. The D was not a resident of Oregon at that time, and was not personally served with the process. Mitchell noticed Neff of the suit by publishing the summons in the Pacific Christian Advocate (weekly newspaper) but without actually mailing the summons to the D. The summons was published for 6 straight weeks. The D failed to respond suit/ failed to resist the suit, so the court entered a default judgment against him. After the default judgment the D acquired 300 acres of land in Oregon, the sheriff seized and sold the land in order to satisfy the judgment against the D. Land was bought by P (received a deed of evidence title) however, after the sale the D discovered what happened and bought suit against the P to recover the land. Circuit Court (federal court) ruled in favor of D, and P appealed decision.
Issue(s): (A) Can judgments made against non-residents who fail to appear in court be valid/sustained by default judgments where service of process is accomplished solely through publication (constructive service)? (B) Can seizure of property purchased after the judgment is entered may be bases for a court to exercise personal jurisdiction over the party?
Holding and Rule: (A) No, the personal judgment recovered in state court of Oregon against the P was without legitimacy. When suit is against a person, constructive service through a publication upon a non-resident is ineffective. (B) No, person is subject to jurisdiction of a court unless, he appears in the court, is found within the state, is a resident of the state, or has property in the state at the time the jurisdiction attached.
Courts Reasoning: No state may exercise jurisdiction over a person or their property residing outside its territory. The property was not attached or in any way brought under jurisdiction of the court, because at the time of the original suit D did not own property, so it cant be a basis for the state courts jurisdiction. Also, D was not personally served with the process; constructive process in form of a newspaper publication may be service for resident but not for nonresident. The trial court had no jurisdiction over Neff in the original suit therefore D retains title to property.
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