Pennoyer v. Neff
Citation: 95 U.S. 714 (U.S. Supreme Court, 1878)
Facts
Mitchell obtained a default judgment against Neff in Oregon state court for attorney’s fees. Service was made by publication, but Neff was not personally served and had no property in Oregon at the time. After the judgment, Neff acquired Oregon land, which was sold to satisfy the debt. Pennoyer purchased the land at the sheriff’s sale. Neff then sued Pennoyer to recover the land, arguing the underlying judgment was void.
Issue
Whether an Oregon court had personal jurisdiction over Neff when he was not present in Oregon, not personally served there, and had no property in the state at the time of the suit.
Holding
The Supreme Court held that the original judgment against Neff was void for lack of personal jurisdiction, and therefore the sale to Pennoyer was invalid and Neff retained title to the land.
Rule
Under the territorial power theory, a state court’s jurisdiction over persons depends on physical power: (1) in personam jurisdiction requires the defendant be served with process while physically present in the state; (2) in rem jurisdiction over property requires the property be located in the state at the time the action is commenced.
Significance
Pennoyer established the classical territorial theory of personal jurisdiction that dominated for nearly seventy years, until it was replaced by the minimum contacts analysis of International Shoe. It is taught primarily as the historical baseline against which International Shoe’s constitutional revolution is measured.