Pennoyer v. Neff

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Pennoyer v. Neff, 95 U.S. 714 (1878).

Facts: A default judgment was won against Neff in Oregon state court. Neff had not been personally served, but notice was made via publication. Neff's property in Oregon was levied in order to satisfy the judgment. The land was later assigned to Pennoyer.

Procedural History: Neff sued Pennoyer in federal court to recover his land. Neff won. Pennoyer appealed to the United States Supreme Court.

Issue: Does a state court have personal jurisdiction over a non-resident who owns property in the state in a suit not related to the property if the individual is not present in the state and cannot be personally served within the state?

Holding: No, for the court to have jurisdiction over a person that does not live in the state, that person, or an agent of that person, must be personally served within the state. For the court to have jurisdiction over the property, the property needed to be attached before the start of litigation (which then forms quasi in rem jurisdiction).

Judgment: Affirmed.

Rule: A court must have personal jurisdiction to create a binding judgment. The court has no personal jurisdiction, and any judgment is invalid, in a case where:

  • the defendant doesn't live there;
  • the defendant is not present within the state; or
  • a property in that state is not in controversy.

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