Filing Va. Lawsuit Leads to Personal Jurisdiction

In plaintiff George Mason University Foundation’s suit to enforce a $100,000 judgment it won in Virginia state court during litigation with decedent’s two children, the Richmond U.S. District Court has personal jurisdiction over both the Alabama resident son and the Maryland resident daughter, as their own Virginia state court action was not nonsuited, as they claim, but tried and appealed unsuccessfully.

Defendants argue the basis of GMUFs lawsuit involves events that took place almost exclusively in Alabama relating to defendants’ mother who resided in Alabama from May 1, 2007, until her passing on March 25, 2011. Defendants contend that while they initially filed a petition in Virginia they immediately “legally and properly” nonsuited it and filed a petition in Alabama, where decedent chose to live out the remainder of her life. GMUF intervened in the action in the Montgomery County Probate Court in Alabama under a general appearance seeking a dismissal or stay so the parties could continue proceedings in Virginia. The Alabama court probated the mother’s estate in April 2011, and defendants sought to be the sole beneficiaries of the estate. Defendants alleged GMUF proffered no challenge to the will nor made any claims against defendants for the alleged judgment. Defendants contend GMUF was required under Alabama law to file a claim within six months of when Letters of Testamentary were issued to defendant son as executor, and GMUF’s failure to do so renders any future claims null and void. Defendants argue this court has no personal jurisdiction over them.

Under the Virginia long-arm statute, a single act in Virginia is sufficient to confer jurisdiction on Virginia courts. Courts have found personal jurisdiction where a nonresident party has previously filed litigation in the forum state involving the same transaction at issue.

Here, GMUF’s lawsuit to enforce the judgment clearly arises directly from the action filed by defendants in Virginia Beach Circuit Court. Defendants’ contention that they legally and properly nonsuited their case fails, as the circuit court denied their nonsuit, tried the case, and defendants unsuccessfully appealed the court’s order. Also, the exercise of personal jurisdiction is constitutionally reasonable as it was defendant’s original choice to sue in Virginia and there is no conceivable unfairness in finding that they consented to personal jurisdiction by filing the original suit.

Defendants’ claim that GMUF is attempting to relitigate enforcement of the judgment in the Virginia court after failing to domesticate the judgment in Alabama courts is simply incorrect. The case defendants rely upon is one initiated in May 2011 by the Trust Company of Virginia, not GMUF, for enforcement of the judgment in favor of decedent. That case was dismissed by the Alabama court upon her death on June 23, 2011. The court denies defendants’ motion to dismiss on the basis of res judicata and collateral estoppel.

The court also denies defendants’ motion to transfer venue to an Alabama federal court. The claim at issue involves enforcement of a judgment of Virginia Beach Circuit Court arising from litigation initiated by defendants in that court. Venue is therefore proper in the Eastern District of Virginia.

Defendants’ motions denied.

George Mason University Foundation Inc. v. Morris (Spencer) No. 3:11cv848, April 11, 2012; USDC at Richmond, Va. VLW 012-3-148, 16 pp.