Reiner, Reiner & Bendett, P.C. v. Cadle Co.Reiner, Reiner & Bendett, P.C. v. Cadle Co.
Opinion
The plaintiff, Reiner, Reiner and Bendett, P.C., a law firm, rendered legal services to the named defendant, The Cadle Company (defendant), an Ohio corporation, for which the plaintiff allegedly was not paid. This joint appeal arises out of two actions brought by the plaintiff seeking payment for those services. In both actions, the plaintiff obtained default judgments against the defendant. In the first action, brought in 2000, the plaintiff sought and obtained judgment for the amount of the unpaid fees (collection action). The plaintiff thereafter filed a judgment hen against real property in Connecticut owned by the defendant. The plaintiff then brought the second action in 2004, to foreclose the judgment hen (foreclosure action), and obtained a judgment of foreclosure by sale.
1
In this joint appeal,
2
the defendant challenges the default judgment in the collection action, claiming that the trial court lacked personal jurisdiction over the defendant in that action.
3
The defendant also challenges the default judgment in the foreclosure action, contending that the trial court in the foreclosure action improperly failed to observe the statutory continuance for a nonresident, nonappearing defendant as mandated by
The record reveals the following undisputed procedural history and facts that are relevant to our disposition of this appeal. On March 31, 2000, the plaintiff filed the collection action, alleging that the defendant had obtained the plaintiffs legal services pursuant to a written “Retainer Agreement” and that the defendant had failed to pay for those services as required by the agreement. The complaint was served on the defendant by certified mail pursuant to the corporate long arm statute,
The plaintiff thereafter recorded a judgment lien against certain Connecticut property owned by the defendant, and, on January 29, 2004, brought the foreclosure action. The plaintiff again served the complaint by certified mail pursuant to the corporate long arm statute,
Within three weeks after the foreclosure judgment was entered, the defendant filed a motion to open the default and the judgment claiming, in part, that the
judgment was void because the trial court had failed to order the mandated continuance pursuant to
I
The defendant first claims that the trial court improperly concluded that the forum selection clause in the retainer agreement did not deprive the trial court of personal jurisdiction over the defendant in the collection action. The defendant contends that the forum selection clause, which required litigation arising from the contract to be resolved in Ohio courts, deprived the trial court of the power to exercise personal jurisdiction over the defendant. Because of this lack of personal jurisdiction, the defendant argues, the judgment against the defendant in the collection action was void and, accordingly, the judgment in the foreclosure action should have been vacated because it was premised on the validity of the judgment in the collection action.
The plaintiff responds that, although forum selection clauses may be enforceable generally, a specific clause will not deprive a court of jurisdiction unless one of the parties actually seeks to enforce it and the trial court determines, based on several factors, that the clause should be enforced. Because the defendant failed to appear in the collection action and seek enforcement of the clause, the plaintiff argues, the clause did not deprive the court of personal jurisdiction of the defendant. 7 We agree with the plaintiff.
We begin with the applicable standard of review. The question before the trial court, i.e., whether, in a contract action, a forum selection clause will divest a court not designated in the clause of personal jurisdiction over a defendant that had not sought to enforce the clause in that action, is a question of law, over which our review is plenary. See
McBurney
v.
Cirillo,
Historically, courts viewed forum selection clauses as improper attempts by the parties to oust jurisdiction from a court that otherwise had the authority to hear
an action. Annot.,
In more recent years, however, courts have concluded that forum selection clauses do not oust courts of their jurisdiction, but they have been willing to enforce such contract clauses as long as they were reasonable by declining to exercise jurisdiction over an action in certain circumstances. Annot.,
Moreover, the claim that a forum selection clause will strip a court of its jurisdiction over the parties, while not yet expressly considered by this court,
9
has been solidly rejected by the great weight of courts and authorities considering the question after the Supreme Court’s decision in
Bremen.
See, e.g.,
Lambert v. Kysar,
In the present case, the defendant fails to offer any legal authority in support of its contention that the Ohio forum selection clause agreed to by the parties deprived the trial court of personal jurisdiction over the defendant. We are persuaded by the reasoning of the United States Supreme Court in
Bremen,
and conclude that the Ohio forum selection clause did not divest the trial court of personal jurisdiction over the defendant. The existence of such a clause does not deprive the trial court of personal jurisdiction over the parties, but presents the question whether it is reasonable for the court to exercise its jurisdiction in the particular circumstances of the case. See
Bremen
v.
Zapata Off-Shore Co.,
supra,
The defendant’s second claim is that the trial court abused its discretion when it declined to open the judgment in the foreclosure action on the basis of the defendant’s claim that the court had failed to order the statutory continuance required by § 52-87 (b)
11
for nonresident, nonappearing defendants. Specifically, the defendant argues that the plaintiff failed to present the trial court with sufficient evidence that the defendant had received actual notice of the action, which, under the statute, would have permitted the trial court to proceed without observing the statutory continuance. See
The plaintiff responds that sufficient evidence was presented to establish that the defendant had received actual notice of the foreclosure action. The plaintiff further claims that the defendant has failed to provide an adequate record for review because it did not seek an articulation with regard to Judge Freed’s basis for concluding that the defendant had received actual notice of the foreclosure action. Finally, the plaintiff argues that the defendant failed to satisfy the prerequisites to opening a judgment as set forth in
The following additional facts are relevant to the resolution of this appeal. On March 8, 2004, the plaintiff appeared before Judge Satter in support of his motion for default for failure to appear and his motion for judgment of foreclosure by sale. During the hearing, the plaintiff offered to submit to the court for its inspection a supplemental marshal’s return attached to which was the signed green return receipt card from the post office. The return and the signed card together indicated that service of the complaint had been made on the defendant at its address in Ohio by certified mail addressed to the care of the “Secretary” and that “B. Puleo” had signed for delivery of the documents on January 29, 2004. Judge Satter then made a finding concerning the debt and ordered the entry of judgment of foreclosure by sale. At the end of the hearing, the plaintiff asked the trial court to return to it the supplemental return documents, “unless the court needs them for its file.” Judge Satter replied, “No, I don’t need them. I thought I gave them — here they are.”
Thereafter, on March 26, 2004, the defendant filed its motion to open the default and the judgment. The defendant also filed a supplemental brief in support of its motion to open, to which it attached a second affidavit of Barta, the defendant’s assistant vice president, dated May 27, 2004. In that affidavit, Barta admitted that the defendant had received a copy of the plaintiffs motion for default in the foreclosure action on or about February 19, 2004.
We begin with the standard of review for the denial of a motion to open. “The principles that govern motions to open or set aside a civil judgment are well established. A motion to open and vacate a judgment ... is addressed to the [trial] court’s discretion, and the action of the trial court will not be disturbed on appeal unless it acted unreasonably and in clear abuse of its discretion. ... In determining whether the trial court abused its discretion, this court must make every reasonable presumption in favor of its action. . . . The manner in which [this] discretion is exercised will not be disturbed so long as the court could reasonably conclude as it did.” (Internal quotation marks omitted.)
State
v.
New England Health Care Employees Union, District 1199, AFL-CIO,
We note also the standard of review for issues of fact because the defendant’s claims on appeal involve, in part, a challenge to factual determinations made by the trial court. “Questions of fact are subject to the clearly erroneous standard of review. ... A finding of fact is clearly erroneous when there is no evidence in the record to support it ... or when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed. . . . Because it is the trial court’s function to weigh the evidence . . . we give great deference to its findings.” (Citation omitted; internal quotation marks omitted.)
McBurney
v.
Cirillo,
supra,
The continuance statute,
We must decide whether Judge Freed’s finding that the defendant received actual notice of the pendency of the foreclosure action is clearly erroneous. His decision to deny the defendant’s motion to open was based upon that finding and, in addition, his conclusion that Judge Satter, who entered the default and rendered the foreclosure judgment, also implicitly had found such actual notice.
15
The defendant argues that Judge Freed
improperly based his finding of actual notice upon the signed return receipt card. The defendant contends that the plaintiff bore the burden of proving all facts necessary to establish the trial court’s jurisdiction, including the fact of actual notice. Thus, the defendant argues, the plaintiff was required to present extrinsic evidence of the identity of the person who had signed the return receipt card and that, without such evidence, the plaintiff failed to carry its burden of proving actual notice. In support of this position, the defendant cites to a trial court decision,
Walker
v.
Syms,
Superior Court, judicial district of Hartford-New Britain at Hartford, Docket No. CV 98 0581210 (June 22, 1999)
(Mulcahy,
J.), in which the court relied upon a decision of this court,
Standard Tallow Corp.
v.
Jowdy,
In
Jowdy,
this court considered whether the trial court properly dismissed an action because of the plaintiffs failure to prove that the defendant had minimum contacts with Connecticut for purposes of satisfying due process, stating that “[w]hen a motion to dismiss for lack of personal jurisdiction raises a factual question which is not determinable from the face of the record, the burden of proof is on the plaintiff to present evidence which will establish jurisdiction.” Id., 54. This court further quoted approvingly a declaration in Professor Edward L. Stephenson’s treatise
A close reading of
Jowdy
and the treatise indicates that, in both, the jurisdictional facts at issue were the facts necessary to establish that the defendant possessed minimum contacts with the state to justify the court’s exercise of jurisdiction consistent with due process requirements.
Standard Tallow Corp.
v.
Jowdy,
supra,
These authorities rely upon the fact that when service is made constructively, the nature of the defendant’s relationship to the forum generally cannot be discerned from the marshal’s return and accompanying documentation. When the marshal makes abode or personal service in this state, the return indicates that the defendant either lives in the state or at least was present in it when service was made. When the defendant is not a resident of this state and is not present in this state for service, proof that exercise of jurisdiction over the defendant satisfies due process requires evidence beyond the marshal’s assertion that process was mailed and received.
Thus, the extent of the defendant’s contacts with this state for purposes of due process, when challenged, must be proved with evidence extrinsic to the return. Proof that the defendant received actual notice of suit, however, does not require such extrinsic evidence. Whether the defendant received actual notice is a ques tion more akin to the question whether service was made properly than the question whether a defendant’s contacts with the state are sufficient to satisfy the long arm statute and due process. We have found no case, and the defendant has not cited one, in which this court has required the use of evidence extrinsic to the marshal’s return to prove actual receipt of service of process.
In the present case, we first note that the plaintiff did not rely solely upon the marshal’s representations concerning service of process to establish actual notice. In addition to the marshal’s initial return of service showing service by certified mail properly addressed to the secretary of the corporation pursuant to the corporate long arm statute, the plaintiff presented a supplemental return of service that contained the signed receipt card indicating that process had been delivered by the United States Postal Service to the defendant’s proper address, and that an individual at that address acknowledged having received service by signing the return receipt card. Given this evidence, Judge Freed’s finding that the defendant had received actual notice of the foreclosure action was not clearly erroneous.
Moreover, the defendant does not contend that it failed to receive notice of the foreclosure action but, rather, argues solely that the plaintiff failed, as a matter of law, to carry its burden of proving that the defendant had received actual notice. The defendant is uniquely situated to know whether the complaint actually failed to reach the defendant. If the defendant were to contest the evidence, alleging that, despite the signed return receipt, it did not in fact receive the papers, then the plaintiff might be required to produce additional evidence to meet its burden of proving actual notice. Such additional evidence was offered to prove the plaintiffs case in a similar case,
Phoenix State Bank & Trust Co.
v.
Whitcomb,
When the evidence gives rise to a reasonable presumption of receipt, as it does in the present case, the fact finder may rely upon that presumption to establish receipt unless the defendant gives the fact finder a reasonable basis to question its truthfulness. See
Pitts
v.
Hartford Life & Annuity Ins. Co.,
supra,
The judgments are affirmed.
In this opinion the other justices concurred.
Notes
Two additional defendants in the foreclosure action, Sky Bank and FirstMerit Bank, N.A., both mortgagees, are not parties to this appeal. In this opinion, references to the defendant are to The Cadle Company only.
The defendant filed a joint appeal to the Appellate Court from the judgment in the collection action and from the trial court’s denial of its motion to open the judgment of foreclosure. The Appellate Court granted in part the plaintiffs motion to dismiss the appeal from the collection action, and we transferred the joint appeal to this court pursuant to
Although the defendant also attacked the judgment in the collection action on other grounds, the Appellate Court granted the plaintiffs motion to dismiss those portions of the appeal, permitting the defendant to challenge the collection action only with regard to its claim that the trial court lacked personal jurisdiction over the defendant in that action. We also decline to consider the defendant’s other attacks on that judgment contained in its reply brief. See
Grimm
v.
Grimm,
“(d) A continuance or postponement under this section shall not be granted or, if granted, shall terminate if actual notice is shown in accordance with section 52-88. . . .”
“(d) Service is effective under subsection (b) of this section at the earliest of: (1) The date the foreign corporation receives the mail; (2) the date shown on the return receipt, if signed on behalf of the foreign corporation; and (3) five days after its deposit in the United States mail, as evidenced by the postmark, if mailed postage prepaid and correctly addressed. . . .
“(f) Every foreign corporation shall be subject to suit, in this state, by a resident of this state or by a person having a usual place of business in this state, whether or not such foreign corporation is transacting or has transacted business in this state and whether or not it is engaged exclusively in interstate or foreign commerce, on any cause of action arising as follows: (1) Out of any contract made in this state or to be performed in this state ....
“(g) In any action brought, under subsection (e) or (f) of this section, or in any foreclosure or other action involving real property located in this state in which a foreign corporation, although not transacting business in this state, owns or claims to own an interest, service of process on such corporation may be made as provided in subsection (b) of this section, except that the service shall be addressed to the corporation at its principal office or, if it has no such office or the address of such office is not known, to such corporation’s last office as shown in the official registry of the state or country of its incorporation, which address shall be set forth in the writ or other process.
“(h) This section does not prescribe the only means, or necessarily the required means, of serving a foreign corporation.”
The plaintiff also argues that the defendant’s attempt to challenge the collection action through the foreclosure action is an improper collateral attack. The parties agree that the defendant’s challenge to the judgment in the collection action constitutes a collateral attack. The defendant brings the challenge by way of a motion to open the judgment in the foreclosure action, rather than in the collection action itself, and does so nearly three years after the date of the judgment in the collection action, well beyond the four months within which a judgment may be opened. See
The plaintiff specifically argues that the defendant may not attack collaterally the judgment in the collection action because the alleged defect in the judgment is not apparent from the record. The plaintiff relies on
Jensen
v.
Nationwide Mutual Ins. Co.,
The
Bremen
court held that the correct approach for federal courts sitting in admiralty is that “such clauses are prima facie valid and should be enforced unless enforcement is shown by the resisting party to be ‘unreasonable’ under the circumstances.”
Bremen
v.
Zapata Off-Shore Co.,
supra,
This court has recognized the enforceability of forum selection clauses in
United States Trust Co.
v.
Bohart,
The defendant also alleges that the trial court was not aware of its obligation to consider the enforceability of the clause because the plaintiff fraudulently failed to submit to the court the “Terms of Representation” memorandum, which contained the forum selection clause. The defendant offers no evidence or finding of fact by the trial court, however, concerning this allegation of fraud. See
The defendant also argues that the exercise of jurisdiction over it in the collection action despite the existence of the forum selection clause violated its constitutional due process rights because it did not have a reasonable anticipation of being sued in Connecticut. Once again, this claim does not implicate the trial court’s personal jurisdiction, only the propriety of its exercise of that jurisdiction, and the defendant’s authority to challenge the collection action in this appeal is limited to claims of lack of personal jurisdiction. See footnote 3 of this opinion. Moreover, we note that the defendant failed to raise this claim before the trial court in the foreclosure action and did not seek in this court to prevail on the claim pursuant to
State
v.
Golding,
Finally, although the defendant’s brief refers to the lack of “appropriate service” and “[a]n improperly executed writ,” the brief read in its entirety makes clear that the defendant’s claim is solely that the forum selection clause rendered the trial court’s exercise of jurisdiction over it improper. At no point does the defendant allege insufficient service of process in the collection action. Moreover, the defendant acknowledges in its brief that it did, in fact, receive the writ and complaint in that action.
See footnote 4 of this opinion.
See footnote 4 of this opinion.
The defendant challenges both Judge Freed’s finding of actual notice and his finding that Judge Satter had found actual notice before rendering the foreclosure judgment. Our conclusion that the denial of the motion to open was not an abuse of discretion is based primarily on our determination that the court’s finding of actual notice was not clearly erroneous and, thus, we need not analyze in-depth the defendant’s claim that the record does not support the trial court’s finding that the prior court had made a finding of actual notice. We note, however, that the record does not support the defendant’s claims. The transcript of the hearing establishes that the court handed the supplemental return with the signed return receipt back to the plaintiffs attorney at the end of the hearing and, thus, that the document was in the possession of the court dining the hearing. Moreover, “we are entitled to assume, unless it appears to the contrary, that the trial court . . . acted properly .... The general rule that a judgment, rendered by a court with jurisdiction, is presumed to be valid and not clearly erroneous until so demonstrated raises a presumption that the rendering court acted only after due consideration, in conformity with the law and in accordance with its duty.” (Citations omitted; internal quotation marks omitted.)
Rosenblit
v.
Danaher,
The latest revision of Stephenson’s treatise similarly provides: “[WJhere constructive service is resorted to, jurisdiction can be established only on a showing of facts which do not appear in the return and hence the return alone cannot raise a presumption of jurisdiction.” 1 E. Stephenson, Connecticut Civil Procedure (3d Ed. 1997) § 14, p. 26.