Peoples Bank v. Frazee

318 S.W.3d 121 (Mo. banc 2010) · Supreme Court of Missouri · August 31, 2010 · No. SC 90536

Summary

The Supreme Court of Missouri held that, in a proceeding to register a foreign judgment, the party challenging the judgment bears the burden of overcoming the strong presumption that the rendering court had jurisdiction and entered a valid judgment. The court further held that an Oklahoma court had personal jurisdiction over a Missouri resident who actively participated in executing a guaranty for an Oklahoma bank and thereby established sufficient minimum contacts with Oklahoma. The circuit court’s judgment quashing registration of the foreign judgment was reversed and the case was remanded.

Holdings

  1. When a foreign judgment is regular on its face, it is entitled to a strong presumption of validity and jurisdiction, and the party asserting the judgment's invalidity bears the burden of overcoming that presumption with the clearest and most satisfactory evidence.
  2. Oklahoma could exercise specific personal jurisdiction over H.L. Frazee because his active, voluntary execution and delivery of a guaranty to an Oklahoma bank, which induced renewal of an Oklahoma loan, established sufficient minimum contacts and purposeful availment.
  3. Exercising personal jurisdiction over Frazee was reasonable because he should have foreseen litigation in Oklahoma, Oklahoma had an interest in enforcing guaranties used to extend credit, and Peoples Bank had an interest in obtaining relief after relying on the guaranty.

Questions Presented

  1. In a Missouri proceeding to register a foreign judgment, which party bears the burden of overcoming the presumption that a foreign judgment regular on its face is valid and that the rendering court had personal jurisdiction?
  2. Whether the Oklahoma court had personal jurisdiction over Missouri resident H.L. Frazee based on his execution and delivery of a guaranty to an Oklahoma bank.
  3. Whether exercising personal jurisdiction over H.L. Frazee was consistent with Oklahoma's long-arm statute, the Due Process Clause of the Fourteenth Amendment, and traditional notions of fair play and substantial justice.

Disposition

reversed_and_remanded

Cases Cited (25)

  • State ex rel. Ranni Assocs., Inc. v. Hartenbach, 742 S.W.2d 134 (Mo. banc 1987)(followed and distinguished)
  • Phillips v. Fallen, 6 S.W.3d 862 (Mo. banc 1999)(followed)
  • Miller v. Dean, 289 S.W.3d 620 (Mo. App. 2009)(followed)
  • Big Tex Trailer Mfg., Inc. v. Duff Motor Co., 275 S.W.3d 384 (Mo. App. 2009)(followed)
  • Bryant v. Smith Interior Design Group, Inc., 310 S.W.3d 227 (Mo. banc 2010)(followed)
  • Pettit v. Am. Nat'l Bank of Austin, 649 P.2d 525 (Okla. 1982)(followed)
  • Gletzer v. Harris, 159 S.W.3d 462 (Mo. App. 2005)(followed)
  • Whipple v. JSZ Fin. Co., 885 So. 2d 933 (Fla. Dist. Ct. App. 2004)(followed)
  • Kilbourn v. Kilbourn, 354 Mo. 17, 190 S.W.2d 206 (1945)(followed)
  • Chromalloy Am. Corp. v. Elyria Foundry Co., 955 S.W.2d 1 (Mo. banc 1997)(followed)

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