Fries v. Carpenter
Fries v. Carpenter
Opinion of the Court
The plaintiffs, William Fries, II, and John Lippitt, appeal from a judgment of the Superior Court (Cumberland County, Alexander, J.) granting the motions of the defendants (several corporations and their directors and officers) to dismiss the plaintiffs’ complaint for insufficiency of service of process under M.R.Civ.P. 12(b). Because Dalot v. Smith, 551 A.2d 448 (Me. 1988), is dispositive of the propriety of the dismissal, the sole issue presented on this appeal is whether the dismissal was with prejudice. We hold that it was not and affirm the judgment.
The record of the hearing of the defendants’ motions to dismiss the plaintiffs’ complaint discloses the following facts: In 1985, the defendant MAXXAM Group, Inc. through a tender offer acquired substantially all of the stock of a Maine corporation and later merged it into the defendant Pacific Lumber Company, a Delaware corporation. In November 1985, the plaintiffs, who were shareholders in the Maine corporation, brought an action in the Superior Court, Humboldt County, California, seeking to block the tender offer. On October 2, 1987, the California court stayed the California case to permit the plaintiffs, inter alia, to bring proceedings in Maine.
On August 19, 1986, the plaintiff Fries had filed a class action complaint against the defendants in the Superior Court, Cumberland County, seeking relief pursuant to 13-A M.R.S.A. § 909 (1981).
In Dalot, however, we did not address the effect of an involuntary dismissal for insufficiency of service of process. We now hold that the effect of such an involuntary dismissal is governed by M.R. Civ.P. 41(b)(3), which provides:
(3) Effect. Unless the court in its order for dismissal otherwise specifies, a dismissal under this subdivision (b) and any dismissal not provided for in this rule, other than a dismissal for lack of jurisdiction, for improper venue, or for failure to join a party under Rule 19, operates as an adjudication upon the merits.
It is clear from the language of Rule 41(b)(3) that if the court, as here, does not otherwise specify the effect of an involuntary dismissal of a cause of action the dismissal operates as an adjudication on the merits. Accordingly, the dismissal would be with prejudice unless the ground for dismissal falls within the rule’s stated exceptions. Nothing in the rule distinguishes between a lack of subject matter jurisdiction and a lack of personal jurisdiction. We have previously stated that jurisdiction consists of three essential elements: “First, the court must have cognizance of the class of cases to which the one to be adjudged belongs; Second, the proper parties must be present; Third, the point decided must be in substance and effect, within the issue.” City of Rockland v. Inhabitants of Hurricane Isle, 106 Me. 169, 173, 76 A. 286, 287 (1909). See also Vanasse v. Labrecque, 381 A.2d 269, 279 (Me. 1977); Dillon v. Johnson, 322 A.2d 332, 335 (Me. 1974). Thus, the issue in the instant case is whether there is a lack of personal jurisdiction of the defendants within the purview of the exception set forth in Rule 41(b)(3) when the complaint has been involuntarily dismissed for insufficiency of service of process under Rule 12(b)(5). We hold that because the plaintiffs failed to make a timely service of process on the defendants personal jurisdiction of the defendants was never secured. Jackson v. Hayakawa, 682 F.2d 1344, 1347 (9th Cir. 1982) (only proper service will subject defendants to personal jurisdiction of court); F.T.C. v. Compagnie de Saint-Gobain-Pont-a-Mousson, 636 F.2d 1300, 1319 (D.C.Cir. 1980) (if properly accomplished, service of process confers personal jurisdiction upon court to adjudicate rights of a party); Peterson v. Sheran, 635 F.2d 1335, 1337 (8th Cir. 1980) (district court had no personal jurisdiction over parties not served); Attwell v. LaSalle Nat’l Bank, 607 F.2d 1157, 1159 (5th Cir. 1979) (in order for there to be in personam jurisdiction, there must be valid service of process); 2 J. Moore & J. Lucas, Moore’s Federal Practice 114.03, at 4-78 (2d ed. 1989). Accordingly, the dismissal of the plaintiffs’ complaint did not operate as an adjudication upon the merits of this case.
The entry is:
Judgment of dismissal affirmed and declared to be without prejudice.
. 13-A M.R.S.A. § 909 provides for the right of dissenting shareholders to the fair value of their shares and the procedures to be followed to secure that right.
. We have previously determined whether a dismissal is with or without prejudice when that issue has been presented for the first time by an appeal to this court. See Chute v. Lajoie, 383 A.2d 653 (Me. 1978). To do so promotes judicial economy.
. At the time of our decision in Dalot v. Smith, 551 A.2d 448 (Me. 1988), and the decision by the Superior Court in the instant case, M.R.Civ.P. 3 was silent as to the time within which service must be effected after the commencement of an action by filing a complaint. Effective February 15, 1989, M.R.Civ.P. 3 was amended to provide that on proper motion and notice the complaint may be dismissed if the return of service is not filed with the court within 90 days after the filing of the complaint.
Concurring Opinion
concurring.
I concur in affirming the dismissal. In my judgment, however, the Court’s consideration of the effect of that dismissal is advisory. Such a determination should not be made until a subsequent action has been filed. Only then is a live controversy presented.
Reference
- Full Case Name
- William FRIES, II, Et Al. v. Edward CARPENTER Et Al.
- Cited By
- 20 cases
- Status
- Published