Quasi in rem
Encyclopedia
Quasi in rem is a legal term referring to a legal action based on property rights of a person absent from the jurisdiction
. In the American
legal system the state can assert power over an individual simply based on the fact that this individual has property (bank account
, debt
, share of stock, land
) in the state. Quasi in rem jurisdiction does not have much function in the United States any longer. However, in very specific cases, quasi in rem jurisdiction can still be effective.
A quasi in rem action is commonly used when jurisdiction over the defendant is unobtainable due to his/her absence from the state
. Any judgment will affect only the property
seized, as in personam
jurisdiction is unobtainable.
Of note, in a quasi in rem case the court may lack personal jurisdiction
over the defendant
, but it has jurisdiction over the defendant's property. The property could be seized
to obtain a claim against the defendant. A judgment based on quasi in rem jurisdiction generally affects rights to the property only between the persons involved and does not "bind the entire world" as does a judgment based on "jurisdiction in rem".
The claim does not have to be related to the property seized, but the person must have minimum contacts with the forum state in order for jurisdiction to be proper.
On June 24, 1977, in the case of Shaffer v. Heitner
, 433 U.S. 186, the Supreme Court decided that the requirement that the circumstances giving rise to jurisdiction comply with the notion of "fair play and substantial justice" should apply to the quasi in rem jurisdiction questions. The Supreme Court of the United States significantly diminished the utility of the quasi in rem jurisdiction because if the case meets the minimum contacts, fair play and substantial justice tests, the action can be brought under the in personam
jurisdiction. Quasi in rem jurisdiction, however, can still be an effective option to bring the lawsuit to a particular court because quasi in rem jurisdiction allows to overcome limitations of the long arm statute of a particular state.
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
. In the American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
legal system the state can assert power over an individual simply based on the fact that this individual has property (bank account
Bank account
A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank .-Account types:...
, debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
, share of stock, land
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
) in the state. Quasi in rem jurisdiction does not have much function in the United States any longer. However, in very specific cases, quasi in rem jurisdiction can still be effective.
A quasi in rem action is commonly used when jurisdiction over the defendant is unobtainable due to his/her absence from the state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
. Any judgment will affect only the property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
seized, as in personam
In personam
In personam is a Latin phrase meaning "directed toward a particular person". In a lawsuit in which the case is against a specific individual, that person must be served with a summons and complaint to give the court jurisdiction to try the case, and the judgment applies to that person and is called...
jurisdiction is unobtainable.
Of note, in a quasi in rem case the court may lack personal jurisdiction
Personal jurisdiction (United States)
Personal jurisdiction, in the law of civil procedure in the United States, refers to a court's jurisdiction over the parties to a law suit, as opposed to subject matter jurisdiction...
over the defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
, but it has jurisdiction over the defendant's property. The property could be seized
Search and seizure
Search and seizure is a legal procedure used in many civil law and common law legal systems whereby police or other authorities and their agents, who suspect that a crime has been committed, do a search of a person's property and confiscate any relevant evidence to the crime.Some countries have...
to obtain a claim against the defendant. A judgment based on quasi in rem jurisdiction generally affects rights to the property only between the persons involved and does not "bind the entire world" as does a judgment based on "jurisdiction in rem".
The claim does not have to be related to the property seized, but the person must have minimum contacts with the forum state in order for jurisdiction to be proper.
On June 24, 1977, in the case of Shaffer v. Heitner
Shaffer v. Heitner
Shaffer v. Heitner, 433 U.S. 186 , was a case in which the Supreme Court of the United States established that in order for an American state to assert personal jurisdiction, due process under the Fourteenth Amendment requires minimum contacts over and above the mere ownership of stocks...
, 433 U.S. 186, the Supreme Court decided that the requirement that the circumstances giving rise to jurisdiction comply with the notion of "fair play and substantial justice" should apply to the quasi in rem jurisdiction questions. The Supreme Court of the United States significantly diminished the utility of the quasi in rem jurisdiction because if the case meets the minimum contacts, fair play and substantial justice tests, the action can be brought under the in personam
In personam
In personam is a Latin phrase meaning "directed toward a particular person". In a lawsuit in which the case is against a specific individual, that person must be served with a summons and complaint to give the court jurisdiction to try the case, and the judgment applies to that person and is called...
jurisdiction. Quasi in rem jurisdiction, however, can still be an effective option to bring the lawsuit to a particular court because quasi in rem jurisdiction allows to overcome limitations of the long arm statute of a particular state.