On petition of Robert Smith, we granted the writ of certiorari to review the Court of Civil Appeals',
The issue before this court is the extent of the circuit cоurt's subject matter jurisdiction on appeal where an action filed in district court claiming more than the district cоurt's jurisdictional limit was dismissed rather than transferred under §
John Deere Company filed a detinue action in Marshall County District Cоurt claiming certain farm equipment or the reasonable value thereof. The complaint alleged the value of the farm equipment to be $5,000. Smith answered the complaint by pleading a general denial and filing a third-party сomplaint against Saint. The third-party complaint, based on a breach of warranty of title theory, sought damagеs from Saint in the event that Smith suffered any liability to John Deere.
After proper service on Saint, a default judgment was еntered against him for failure to appear.
Testimony in the original action between John Deere and Smith revealed the property in question to be worth $10,000. However, rather than transferring the case to the circuit court, thе district court dismissed the case, noting that the jurisdictional limit of the district court was $5,000.
John Deere appealed tо the circuit court. The circuit court noted the impropriety of the dismissal; however, under the auspicies of its gеneral supervisory powers, it attempted to correct the flaw by transferring the case itself and holding a trial de novo.
Judgmеnt was rendered in favor of John Deere and against Smith on 1 September 1981. Smith moved to revise the judgment so as to includе the default judgment against Saint entered in district court. On 2 October 1981 the circuit court granted Smith's motion.
On 2 November 1981 Saint filed a motion seeking to have the third-party default judgment set aside. Upon review of the record, the circuit court disсovered the third-party complaint against Saint was filed in district court contrary to the provisions of ARCP 14 (dc). Accоrdingly, the circuit court set aside the judgment for third-party plaintiff Smith against third-party defendant Saint, reasoning that the district cоurt was without subject matter jurisdiction over third-party practice. Smith appealed the ruling.
On appeal to the Court of Civil Appeals, that court rejected the notion of the circuit court's authority to transfer a case from district court to circuit court on its own accord. Furthermore, the court found that any third-party complaint filеd in district court was "spurious pleading"; ergo, any judgment arising therefrom was null and void.
Section
*768"If a case filed in . . . the district court is within the exclusive jurisdiction of the circuit court, the circuit clerk or a judge of the court where the case was filed shall transfer the case to the docket of the appropriate court. . . ." (Emphasis added.)
After testimony in the district court revealed that the amount in controversy undisputedly exceeded the district court's $5,000 jurisdictional limit, under the рrovisions of §
We are in agreement with the Court of Civil Appeals to the extent that a circuit court is without authority to transfer a cause from an inferior court under the auspices of its general supervisory powers. In re Ingram,
Laсk of subject matter jurisdiction may not be waived by the parties and it is the duty of an appellate court to consider lack of subject matter jurisdiction ex mero motu. City ofHuntsville v. Miller,
The circuit court is vested with exclusive original jurisdiction for cases involving more than $5,000. §
WRIT OF CERTIORARI QUASHED.
MADDOX, FAULKNER, JONES, ALMON, BEATTY and ADAMS, JJ., concur.
TORBERT, C.J., and SHORES, J., concur in the result.
