Lead Opinion
This action is based upon a promissory note executed by the defendant Vigen in favor of the defendant Rustad. The note represented a portion of the purchase price of a certain tract of land in Cass County, and, concurrently with the execution of the note, Rustad executed a contract for the sale of said land to the defendant Vigen. It is alleged in the complaint that Rustad sold and transferred the note to plaintiff, and Rustad was made party defendant, and as to him a decree is asked confirming in plaintiff all Rustad’s rights under the contract of sale,
We learn from the record that the plaintiff claims the ownership of the note by virtue of a purchase at execution sale in Hennepin County, in the State of Minnesota, which execution was issued upon a judgment entered in the District Court of said county, in an action brought by one McKindly against the defendant Rustad. A duly authenticated transcript of the entire record in that case was offered in evidence by appellant, and, on objection, was excluded. From that record we learn that Rustad was not a resident of the State of Minnesota when sued there, but was a resident of this state. There was no personal service of summons, .but service by publication was made, or, at least, attempted. There was no appearance, and judgment was taken by default. A writ of attachment was issued about the time of the commencement of the action, and a garnishee summons served upon the Washington Bank of Minneapolis. The disclosure of the garnishee showed that the bank held Rustad’s note for over $9,000, on which over $7,000 remained due and unpaid, and that as a collateral to this indebtedness, the bank held notes belonging to defendant Rustad to the amount of about $22,000. Such subsequent proceedings were had in the case that all the collateral notes remaining in the hands'of the garnishee.after the indebtedness of Rustad to the garnishee was satisfied were sold on execution issued upon the judgment in favor of McKindly and against Rustad, and plaintiff herein became the purchaser at the execution sale. His title is assailed upon grounds which go to the jurisdiction of the District Court of Hennepin County, in the State of Minnesota, to enter any judgment against the defendant Rustad. By stipulation in this case the statutes of Minnesota, as published in 1894, are to be treated as in the record. The first attack upon the judgment, and the one chiefly relied upon,
Service of publication is of comparatively recent origin. It was not known at common law. There an absent defendant was compelled to appear by means of the writ of distringas, requiring the sheriff to seize a certain amount of his property, and this was repeated again and again, even to the extent of outlawry, if necessary.' In England, in 1832, by statute, service by publication was authorized in certain cases in chancery. See 1 Dániell, Ch. Prac. p. 449 et seq. Similar statutes existed in New York and perhaps in other states. ' But service by publication in a law action was unknown in New York until the adoption of the Code of Civil Procedure of 1849, containing the provisions under' discussion. It will be instructive to; discover the-construction put upon it at its first appearance. The case of Hulbert v. Insurance
In the light of the above quotation from 18 How. Prac.,we wish to discuss another position maintained by respondent with much confidence. Subdivision 5 of the section of the Minnesota statute, providing cases in which service may be made by publication, reads: ■ “When the subject of the action'is real or personal property in this state, and the defendant has or claims a lien or interest therein,” etc. Here, it is urged, it is ■ clear that the
The case of Pennoyer v. Neff, 95 U. S. 714, furnishes the groundwork for much of the respondents’ contention in this case. But no point was decided in that case that can aid respondents. The facts were that the state court of Oregon had rendered a personal judgment against a nonresident nonappearing defendant, served by publication only. A general execution was issued upon the judgment, and certain lands of the execution defendant were sold, and the purchaser put in possession. Subsequently an action was brought in the Federal Court by the execution defendant against the purchaser to regain possession. The case turned upon the validity of the judgment in the Oregon state court. In the Federal Supreme Court the case received exhaustive consideration, and it was authoritatively announced that no state court had the power to enter a personal judgment against a nonappearing nonresident defendant, served by publication only. These principles, there announced, and which are now universally accepted as sound, rest upon the broad grounds that every sovereign state possesses exclusive jurisdiction over persons and property within its territory, and may properly determine for itself the status and capacity of its inhabitants, and may prescribe all rules for the acquirement and transfer of property, and for the execution and enfoixement of contracts, within such territory; but that the writs and processes of a state court can. have no extraterrorial force or binding effect. They cannot reach beyond the territorial lines of the state where issued, and directly affect persons or property in another state. It being certain, then, that no valid judgment in personam could be rendered in the case, it followed that no valid judgment whatever could be rendered, unless it was in the nature of a judgment in rem. But, to authorize a judgment in rem, some process of the court must have
But, lastly, upon this point, it is urged — and there is reasoning arguendo in Pennoyer v. Neff, that suggests this line of argument —that the law assumes that property is in the possession of the owner, either va. personam or by agent, and that, hence, he will have actual notice of its seizure, and can rush to its defense; but that a statute that requires only that property should be seized before judgment would be satisfied with a seizure one hour before judgment, and thus property would be taken without giving the owner any opportunity to be heard, or, in other words, “without due process of law.” We think this reasoning places undue stress upon the fact of seizure, and loses sight of the effect of substituted service. Such service the law authorizes and recognizes. It will sustain no personal judgment, — can serve as the basis of no personal liability; but for all other purposes it is effective. The law is careful to conserve the rights of nonresident defendants. It provides that notice shall be published for a specified time, usually six weeks, and in the newspaper in the proper jurisdiction most likely to give defendant notice. It requires a copy of the summons and complaint to be sent to him when his address is known. All this is not mere idle form. It serves a .substantial purpose. It is the theory of the law that notice of the pendency of the action ■ is thus brought to the defendant, and only by the grace of permissive .statutes is he permitted to deny it. And, when notice is thus received, he may be justified in disregarding it, so -far as incurring any personal liability is concerned; but he is not justified in treating it as an entirely unwarranted, assumption of- power by a foreign court. He is bound to know the law, and he is bound to know that, if he have property in the jurisdiction, it can and will be seized in the action, unless he appears and incurs the liability of a personal judgment. It is, in effect, a modified form of the
One more point is presented in the brief. It is this: Granting the sufficiency of the affidavit for publication, it is contended that the record offered in evidence shows that no property of the defendant was in fact seized before the entry of judgment. The basis of the claim is the fact that the attachment was by garnishment, the garnishee summons being served upon a bank. The disclosure of the garnishee, made before judgment, showed that it held a large amount of notes belonging to the defendant, and which had been transferred to it by the defendant as collateral to his indebtedness to the bank, which at that time amounted to about one-third of the face value of the collateral notes. Section 53x2 of the Minnesota statute reads: “No person or corporation
It follows that the record of the judgment of the District Court of Hennepin County, Minn., when offered in evidence, was not vulnerable to the objections urged. Its rejection was error, which necessitates a new trial in the case, and it is so ordered.
Reversed.
Dissenting Opinion
I am compelled to dissent from the opinion of this court in this case. The contest before us relates to plaintiff’s title to the note sued on. It was executed by defendant Vigen to defendant Rustad, and plaintiff claims the ownership of it under certain judicial proceedings, ■ had in the District Court of the State of Minnesota against the
This conclusion results inevitably from settled principles of private international law. The defendant, in the case supposed, cannot be personally subjected to the jurisdiction of the court, so as to be bound in any other jurisdiction by a personal judgment rendered in the action; and, since the decision of the Federal Supreme Court in Pennoyer v. Neff, 95 U. S. 714, he cannot in this country be so bound even in the very state in which the judgment was rendered. Before that decision was promulgated, the doctrine enunciated in that case was unquestionably the sound doctrine; but some courts, confounding the general jurisdiction of each sovereignty over all property within its borders with the jurisdiction of a particular court over specific property proceeded against, had frequently held before that decision that the property which was in fact within the state when the suit was commenced might be seized after judgment rendered upon service by publication. This position was not tenable on principle. A proceeding must be in rem or in personam. When personal service is not made, an action can be sustained only as an action in rem. It is only on the theory that such an action is in rem that the court has power to take a single step. Jurisdiction must attach at the inception of the case. There can be no action without jurisdiction. As it cannot, in the case supposed, ever extend to the person, it must be a jurisdiction over property, and this jurisdiction must be coeval with the action. But there cannot be jurisdiction in rem — jurisdiction over property — unless it is proceeded against; and, when the property is proceeded against on the theory that it has been brought within the control of the court by seizure, and not because the suit itself relates to it, or some interest in or lien upon it, the only way in which it can be brought within the jurisdiction of the court is by seizure thereof in some form. Such seizure is indispensable to jurisdiction. Until seizure has taken place, no jurisdiction whatever is vested
In construing the act in question, we find ourselves necessarily dealing with general principles of private international law, and not with the extent of the power of the states to modify such ■principles by legislation. It is obvious that, if that feature of the proceeding which alone gives it vitality — the seizure of property —may lawfully be absent from it at the time of the service of process, it may likewise be absent until the moment before the entry of judgment, and thus the defendant receive no. notice whatever tha,t the court is assuming to exercise jurisdiction over his property until it is too late for him to protect his .interest in it. Up to the moment of the seizure,, which may be immediately before judgment, the defendant, if he happens to know of the action at all, knows of it only as an unwarranted attempt to to exercise jurisdiction over his person. When the suit relates to to specific property (as in actions to foreclose liens on property, or to partition the same, or to remove a cloud from the title to real property, or to reform an instrument relating to the title,) the defendant, from the very first step in the case, has notice,— what the law regards as notice, and, usually, it is sufficient to apprise.him of the action, — has notice that his property is being proceeded against. But, when the, action is to recover money, and property-is affected only as it is attached in the case, it is not until an actual. seizure that the defendant can receive any information- that such property forms the real subject of the action. Prior to that time, the suit has the appearance of an unjustifiable proceeding in personam.. As in actions relating directly to property the defendant is from the-beginning informed that property forms the subject of the action, so, where it is made the real subject of the action by seizure for a claim, he must likewise be given this notice from the inception of the case, or, at least, a reasonable time before the entry of judgment. .The only
The reasoning of the Federal Supreme Court in Pennoyer v. Neff, 95 U. S. 714, seems to lead inevitably to the view that, in cases where property is proceeded against merely by attachment, ‘ the seizure must' be. made at the commencement of the suit, or a reasonable time before' judgment. It is, at least, certain that such was and is the practice in analogous cases in, admiralty, and it is also true that, to require seizure to precede service by publication, or, at least, to be made a reasonable time before judgment, is in the interests of justice to the owner of the propetty and of orderly practice. Moreover, it is móre rational to pro.vide for seizure in advance, for, until seizure, the question of ultimate jurisdiction is unsettled. Jurisdiction may never attach. It is in
There are, doubtless, decisions which appear to militate against our view, but they were rendered before the mists had lifted from this department of jurisprudence. They ignore, or at least attach but little importance to, the peculiar functions of an attachment in actions against nonresidents. In actions in which a personal judgment can be rendered, an attachment has for its sole object the creating of a lien on property as security for the claim sued on. But where a personal judgment cannot be rendered in an action for money, the attachment of property is an indispensable jurisdictional step. By it, and by it alone, jurisdiction over the res is obtained. The question is no longer merely one of lien, but of jurisdiction. Where the plaintiff has obtained jurisdiction over the person, he may postpone the seizure till just before the entry of judgment, for all he is after is
When the words “subject of the action” are found in statutes
The argument advanced by counsel for plaintiff has a double edge. If the object was to provide that the plaintiff was to state in his affidavit that the court had jurisdiction of the claim sued upon, why was not the phrase “subject matter” employed? Then no uncertainty could have existed. This phrase was not employed; but, on the contrary, another phrase was used, which, in courts of equity, had been long understood to refer to the property which formed the real subject of the controversy. In a proceeding in rem to foreclose a mortgage the foreclosure in one sense constitutes the subject of the action. But courts of equity had come to speak of the property itself as the real subject of the action. And so, when the legislature, under our blended systems of procedure, embracing both legal and equitable actions, assimilated the procedure in legal and equitable actions, in the matter of reaching the property of nonresidents as well as with regards to other matters, it naturally used the words “subject of the action” to express, with respect to legal actions, the same meaning which it had in equitable causes. In both classes of cases, the statute, contemplating that there can be no personal judgment, refers by the use of the words “subject of the action” to the only thing which constitutes the real subject of the action, i. e. the property proceeded against. In an action to foreclose a mortgage against a nonresident, the subject of the action might, as we before stated, be regarded, in one sense, as the foreclosure of the lien. So, in an action at law against a nonresident upon contract, the enforcement of the contract might in the same sense be considered the subject of the action. But courts of equity have long regarded the property in such a foreclosure action as constituting the real subject of the action, for it is all that can be reached in the proceeding. Why should not the same court, which administers equitable relief, regard, in a legal action of which it also has jurisdiction, the property attached as the
It is said that, if these words, “subject of the action,” mean seizure of property, why was the plaintiff required to state, also, that the defendant had property in the state? Proof that property had been seized in the state would be proof that the defendant had property therein. But there is no incongruity in the use of these two phrases. The provision, as we construe it, in effect reads as follows: “That the defendant has property within the state which has been attached.” Certainly it would not be claimed that such a provision was open to serious criticism for redundancy, although it would be strictly true that the same idea might have been expressed by a declaration that the plaintiff should state, in his affidavit, that property of the defendant had been attached. Over against these arguments of counsel for plaintiff, which are by no means destitute of force, are set the following arguments, which in my judgment are controlling: First. On their view of the meaning of those words, such words require the plaintiff to state that which the court knows from the mere fact that it is in a civil action that the plaintiff desires to serve a summons by publication, — to state, not an extrinsic fact, or, indeed, a fact at all, but a mere proposition of law, which must invariably be true in all such cases. Second. Considering the essential nature of the proceedings, the anologies of the law, and the meaning given to these words by courts of equity, they are in this statute more susceptible of the construction we place upon them than the one for which plaintiff’s counsel contends. Third. It is only through this interpretation of these words that any provision can be found in the statutes which makes it necessary for the plaintiff to attach a reasonable time before judgment, Or at any time until the moment before judgment is entered; and to hold that the statutes authorize such a belated attachment, in a proceeding which can have no force
I fully agree with my associates in the disposition of the other point in the case.