Opinion ID: 1913934
Heading Depth: 2
Heading Rank: 2

Heading: In Rem and Quasi In Rem Jurisdiction

Text: Plaintiffs with claims based on admiralty or maritime law sometimes encounter a problem when attempting to effect service of process on the prospective or intended defendant. In the maritime context, the shipowner, often in a foreign land, was usually not subject to the court's jurisdiction. Geoffrey A. Hoffman, The Sudden Demise of the No Res, No Case Rule in Rule B Maritime Attachment Proceedings: Stevedoring Services of America v. Ancora Transport, 20 Tul. Mar. L.R. note 15 at, 175, 176 (1995). Quasi in rem jurisdiction rectifies this scenario. Pursuant to quasi in rem, if a defendant cannot be served within the territory, the court derives its authority to adjudicate personal claims against the defendant through attachment of defendant's property located in the territory. Hoffman, supra note 23, at 176. Moreover, attachment of property to obtain quasi in rem jurisdiction is used to obtain personal jurisdiction of the defendant, and may be unrelated to the underlying maritime claim. Hoffman, supra note 47, at 178. In Pennoyer v. Neff , 95 U.S. 714, 24 L.Ed. 565 (1877), the United States Supreme Court first articulated the territorial principal underlying quasi in rem jurisdiction and stated that every State possesses exclusive jurisdiction and sovereignty over persons and property within its territory. Hoffman, supra note 21, at 176. Quasi in rem jurisdiction is to be distinguished from in rem jurisdiction. In rem jurisdiction allows plaintiffs who are injured by a ship to seek redress directly against the ship. See Hoffman, supra note 16, at 176. Comparatively, with quasi in rem jurisdiction, recovery is limited to the value of the seized property, unless the defendant is personally served with process. Hoffman, supra note 29, at 177. The development of land-based quasi in rem jurisdiction can be traced back to our nation's beginnings, to a time when it was extremely difficult to locate defendants and to prosecute claims in distant forums. Kalo, supra notes 47-48, at 32. During those early times, even when personal jurisdiction could be acquired, judgments rendered in one colony were not readily enforced in another. Kalo, supra note 49, at 32. In that historical setting, one practical solution to the difficulties facing a plaintiff was to allow him to seize property of the defendant located within the forum. Kalo, supra at 33. The seized property provided the basis for a limited form of jurisdiction over the defendant quasi in rem and furnished a source from which any judgment could be satisfied. Kalo, supra note 50, at 33. This form of jurisdiction continued to be necessary after the Constitution was adopted and the nation came into existence. Kalo, supra at 33. The strict notions of territoriality that existed throughout the nineteenth century, coupled with problems related to communication and transportation, continued to make it difficult for many plaintiffs with valid claims to acquire personal jurisdiction over defendants. Kalo, supra note 53, at 33. Admiralty, however, still has a legitimate need for limited forms of jurisdiction such as in rem and quasi in rem. The admiralty court's primary concern is maritime commerce, which is conducted on both a national and international scale. Those involved in maritime activities are often thinly financed, on narrow margins, highly mobile, and potentially difficult and expensive to locate. Moreover, even if personal jurisdiction can be asserted, when the defendant is a foreign national the judgment may not be enforceable at the place where the defendant's assets are located. Thus, in cases involving foreign parties, an inability to assert in rem and quasi in rem jurisdiction may mean the effective loss of the claim. Furthermore, regarding in rem actions, if the vessel is not seized as soon as possible, the lien claimant's priority may be lost by the creation of a subsequent maritime lien as the vessel moves from port to port. Permitting the quasi in rem action also provides additional assurance to local suppliers and others providing services on credit to transient vessels that they may be able to enforce their claims locally. Such assurances can only operate to the overall benefit of maritime commerce. While it is true that not all of these considerations apply to domestic maritime commerce or our own citizens, the need for such jurisdictional bases when dealing with foreign nationals is not diminished. Kalo, supra at 34-35.