| This sounds like a good argument to use a local bank that only operates in your state, rather than a national bank. That way, if someone gets an out of state default judgement from a court that does not have personal jurisdiction over you, they will have to bring that judgement to your state and file it with a court in your state in order to get something enforceable in your state. That should give you an opportunity to challenge the validity of the judgement on jurisdiction grounds. States are required to recognize the judgements of the courts of other states, but only if the court rendering that judgement had jurisdiction. My Civil Procedure recollection is rather hazy. Suppose Chicago sued, in Chicago courts, a small entertainment company that clearly does not have sufficient contacts with Chicago to meet the Constitutional requirements for giving Chicago courts personal jurisdiction. I believe that as part of its pleadings, Chicago would have to tell the Court why it believes that Court is the proper place for the suit, and part of that is explaining to the Court how it has personal jurisdiction. Here's what I do not remember. If the defendant did not appear to dispute that, would the Court simply accept plaintiff's theory of jurisdiction, or does the Court review on its own whether or not it does indeed have jurisdiction? I have a vague recollection that it is the latter, because the issue of whether or not the court has jurisdiction is not an issue between the parties, but rather determines whether the court even has authority to adjudicate the case, but I could easily be confusing this with something else. PS: not a lawyer, yadda yadda |
Judgements of one state's courts are valid in all other states, and can be enforced in other states' courts under the Full Faith and Credit clause of the Constitution, even if the laws in other states are different, unless the judgement is contrary to the public policy of the other state. An example would be trying to enforce an AL non-compete clause in a California court after a non-executive employee has moved from an AL employer to a competitor in CA. Non-competes for non-executives are contrary to public policy in CA on the grounds that they inhibit an employee's rights to earn a living, and so will not be enforced by a CA court.
States are required to recognize the judgements of the courts of other states, but only if the court rendering that judgement had jurisdiction.
No, states are required to enforce the judgements of other state's courts unless the judgement is contrary to the public policy of the state in which enforcement is sought. The defendant is not allowed to challenge the jurisdiction of the original court in an enforcement proceeding--they were supposed to do that in the original trial (or in their appeal to the original ruling). However, if the defendant has challenged jurisdiction (or other issues) in its appeal to the original judgement (in the proper court for making such an appeal), enforcement proceedings (in other states) must be stayed until the appeal is resolved, since the judgment may be overturned.