Also known as: quasi-in-rem · quasi in rem jurisdiction
Written by attorneys · grounded in primary & secondary sources — see below
A form of jurisdiction in which a court adjudicates a personal claim against a nonresident defendant by seizing property of the defendant located in the forum. The judgment is limited to the value of the seized property and does not bind the defendant personally.
Lena attaches PixelForge's shares in a Delaware corporation to sue for unpaid coding work performed entirely in California. PixelForge contests jurisdiction. The court grants the motion because the shares bear no relation to the claim and supply no minimum contacts with Delaware.
Central Hanover Bank seizes trust assets located in New York to adjudicate a claim against nonresident beneficiaries. The bank publishes notice of the quasi in rem proceeding in a local newspaper. The court holds that publication alone fails to satisfy due process when better methods are available.
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A plaintiff seizes an insurer's Alabama bank account to enforce a claim for policy benefits. The insurer contests the quasi in rem proceeding seeking punitive damages. The reviewing court examines whether the procedures afforded adequate notice and an opportunity to contest the amount.
An insurer seizes policy proceeds held in one state to resolve a coverage dispute with a nonresident insured. The court exercises quasi in rem jurisdiction over the res. The analysis turns on the contacts each state has with the parties and the transaction.
A Florida court seizes trust assets to adjudicate claims against nonresident beneficiaries. The trustee seeks a declaratory judgment construing the trust terms under quasi in rem jurisdiction. The court requires that the trustee have purposefully directed activities toward the forum before exercising jurisdiction over absent beneficiaries.
A plaintiff garnishes an insurance policy issued to a Texas resident to collect on a Mexican accident claim via quasi in rem jurisdiction. The Texas court refuses to apply its own law because the policy and the accident lack any connection to Texas.
No. The minimum contacts standard applies to every exercise of state-court jurisdiction, including quasi in rem actions. When the claim is unrelated to the property, its mere presence does not create the required contacts.
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Quasi in rem jurisdiction begins with seizure of the defendant's property in the forum and limits any judgment to the value of that property. In personam jurisdiction reaches the defendant's person and permits enforcement against all assets.
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Notice by publication is insufficient when the defendant's identity and address are known or reasonably ascertainable. Due process requires a method reasonably calculated to inform interested parties of the proceeding.
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No. The judgment binds only the seized property and cannot be sued upon elsewhere as a personal obligation of the defendant.
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…The Delaware courts’ assertion of jurisdiction over appellants in this case cannot be sustained on the basis of the quasi in rem jurisdiction theory that the suit was based on a claim against the stock in the corporation. Pp. 200-217. (a) The quasi in rem jurisdiction theory, under which the stock in the…