Ex Parte Trinity Automotive Services, Ltd., 2040984.

• Citation: 974 So.2d 1005
• Decision Date: 29 December 2006
• Docket Number: 2041020.,2040984.
• Parties: Ex parte TRINITY AUTOMOTIVE SERVICES, LTD. (In re Trinity Automotive Services, Ltd. v. Medical Supplies, L.L.C., and Robert Lewis). Trinity Automotive Services, Ltd. v. Medical Supplies, L.L.C.
• Court: Alabama Court of Civil Appeals

974 So.2d 1005

Ex parte TRINITY AUTOMOTIVE SERVICES, LTD.

(In re Trinity Automotive Services, Ltd. v. Medical Supplies, L.L.C., and Robert Lewis).

Trinity Automotive Services, Ltd. v. Medical Supplies, L.L.C.

2040984.

2041020.

Court of Civil Appeals of Alabama.

December 29, 2006.

Rehearing Applications Denied February 16, 2007.

Certiorari Denied June 15, 2007 Alabama Supreme Court 1060816.

Dayna R. Burnett and Charles N. Parnell III of Parnell & Crum, P.A., Montgomery, for petitioner/appellant Trinity Automotive Services, Ltd.

Jason R. Eubanks, Slocumb, for respondent/appellee Medical Supplies, L.L.C.

MURDOCK, Judge.

Trinity Automotive Services, Ltd. ("Trinity Automotive"), appeals from the judgment of the Geneva Circuit Court vacating the domesticated judgment it obtained in the Supreme Court of the State of New York, Nassau County, against Medical Supplies, L.L.C. ("Medical Supplies"). Trinity Automotive also petitions for a writ of mandamus directed to the Geneva Circuit Court, ordering that court to give full faith and credit to the New York judgment. We deny the petition and reverse and remand.

On November 9, 2001, Medical Supplies entered into an agreement with Shari Lyn Leasing Corp. for the lease of a 2002 Toyota Avalon. The lease was assigned to Sovereign Bank, which subsequently assigned it to Trinity Automotive. Paragraph 14 of the lease agreement provides in pertinent part:

"14. Legal Matters: This lease shall be interpreted in accordance with the State of New York and regardless of the order in which the signatures of the parties are affixed, it shall be deemed executed at lessor's place of business designated herein and in the county thereof, in the State of New York; Lessee and any guarantor hereof consent to the jurisdictions of any state or federal court located within the State of New York and agree that all actions or proceedings arising, directly or indirectly, from this lease shall be mitigated only in courts having such situs...."

(Capitalized in original.)

Medical Supplies defaulted on the lease agreement. Trinity Automotive brought suit against Medical Supplies and Robert Lewis¹ in the Supreme Court of New York, Nassau County, to recover $29,530.06, which it alleged was due and owing on the lease, along with interest and costs. On November 19, 2004, after Medical Supplies and Lewis failed to answer Trinity Automotive's complaint or otherwise appear in the action, the New York court entered a default judgment in Trinity Automotive's favor in the amount of $31,124.11.

On May 29, 2005, pursuant to the Uniform Enforcement of Foreign Judgments Act, Ala.Code 1975, § 6-9-230 et seq., Trinity Automotive filed the New York judgment in the Geneva Circuit Court for the purpose of domesticating the judgment and enforcing it in Alabama against Medical Supplies and Lewis. On March 31, 2005, the Geneva Circuit Court entered an order domesticating the New York judgment.

On April 27, 2005, Medical Supplies filed a "Motion to Set Aside and/or Vacate the Judgment," pursuant to Rules 55 and 59, Ala. R. Civ. P. Medical Supplies argued that the New York court lacked in personam jurisdiction over it, and that the judgment the New York court entered was therefore "improperly obtained." Medical Supplies filed a brief in support of its motion, as well as the affidavit of James Anthony Eubanks, who was, at that time, Medical Supplies's sole member.² In his affidavit, Eubanks stated:

"Medical Supplies is a limited liability company organized and existing in Geneva County, Alabama with its principal place of business in Geneva County, Alabama. It is a small company with only the one office in Geneva County, Alabama, and is limited to serving primarily the local area with durable medical equipment. The company has no office, employees, telephone numbers, assets, bank accounts or any other contacts with the State of New York."

Trinity Automotive filed a response to the motion on June 1, 2005. The trial court held a hearing on the motion on June 2, 2005.

On July 7, 2005, the trial court entered a judgment granting Medical Supplies' motion and vacating the domesticated judgment. The trial court found that Medical Supplies did not have contacts with the State of New York sufficient from a due process standpoint, to vest the New York Supreme Court in Nassau County with personal jurisdiction over Medical Supplies and that the forum-selection clause in the lease agreement was unenforceable.

On August 15, 2005, Trinity Automotive filed a petition for a writ of mandamus with this court, seeking an order directing the trial court to enforce the New York judgment. On August 18, 2005, Trinity Automotive filed a notice of appeal. On August 26, 2005, this court consolidated Trinity Automotive's petition and appeal ex mero motu.

Trinity Automotive contends that the trial court erred when it found that the forum-selection clause contained in the lease agreement was unenforceable. According to Trinity Automotive, the facts in this case demonstrate that the forum-selection clause, by which Medical Supplies consented to the jurisdiction of New York courts for the resolution of all litigation related to the lease agreement, is fully enforceable and constitutes a waiver of Medical Supplies's due-process rights with regard to personal jurisdiction.

As a threshold matter, we note that, although Medical Supplies filed its motion to set aside or vacate the foreign judgment pursuant to Rules 55 and 59, Ala. R. Civ. P., Medical Supplies did not challenge as flawed the process by which Trinity Automotive domesticated its judgment in the Geneva Circuit Court. Compare Bartlett v. Unistar Leasing, 931 So.2d 717, 720-21 (Ala.Civ.App.2005) (noting similarly that that case was "not a case in which the judgment debtor ... argue[d] that Rule 59(e) is an appropriate vehicle for relief from a domesticated judgment because the domestication process in the Alabama court was, itself, flawed"). Instead, Medical Supplies' challenge was directed at the underlying New York judgment, specifically whether the New York court had jurisdiction over Medical Supplies. Both our Supreme Court and this court have held that the appropriate procedural mechanism by which to collaterally attack a foreign judgment on the basis that the judgment is void for lack of jurisdiction is by a motion filed pursuant to Rule 60(b)(4). See Ex parte Lyon Fin. Servs., Inc., 775 So.2d 181, 183 (Ala.2000); Bartlett, 931 So.2d at 720-21. Accordingly, for purposes of our review of the trial court's action in this case, we assume the trial court treated Medical Supplies's motion as one seeking relief from a void judgment under Rule 60(b)(4). Compare McLendon v. Hepburn, 876 So.2d 479, 483 (Ala.Civ. App.2003) (noting that "if the ... motion had been construed as a Rule 59(e) motion, [it] would have been due to be dismissed on procedural grounds" and that the trial court's actions were consistent with the treatment of the motion as a Rule 60(b) motion).

Turning now to Trinity Automotive's petition for a writ of mandamus, we observe what has often been observed by both this court and our Supreme Court: "Mandamus is an extraordinary remedy. An appellate court will grant a petition for a writ of mandamus only when `... the petitioner has no other adequate remedy'" and the other requirements for the issuance of such a writ are satisfied. See, e.g., Ex parte Amerigas, 855 So.2d 544, 546 (Ala.Civ.App.2003) (quoting Ex parte Flint Constr. Co., 775 So.2d 805, 808 (Ala.2000) (citing Ex parte Mercury Fin. Corp., 715 So.2d 196, 198 (Ala.1997))). Subject to certain exceptions, when an appeal is not considered to be an "adequate remedy," "[i]t is now a well-established general rule in this state that if the matters complained of can ultimately be presented by an appeal, a writ of mandamus will not be issued." Ex parte Spears, 621 So.2d 1255, 1256 (Ala.1993) (citing Ex parte Fowler, 574 So.2d 745 (Ala.1990)). The trial court's order granting Medical Supplies's motion and vacating its November 19, 2004, judgment domesticating the original New York judgment on the ground that the original judgment was void for want of jurisdiction, finally disposed of the Alabama case and therefore was appealable. See, e.g., Littlefield v. Cupps, 371 So.2d 51 (Ala.Civ.App.1979). Thus, because an adequate remedy by appeal was available to Trinity Automotive, we deny Trinity Automotive's petition for a writ of mandamus.

Turning now to Trinity Automotive's appeal, we first note that "[t]he standard of review on appeal from an order granting relief under Rule 60(b)(4), Ala. R. Civ. P. (`the judgment is void'), is not whether the trial court has exceeded its discretion. When the decision to grant or to deny relief turns on the validity of the judgment, discretion has no field of operation." Ex parte Full Circle Distribution, L.L.C., 883 So.2d 638, 641 (Ala.2003). "If the judgment is valid, it must stand; if it is void, it must be set aside." Insurance Mgmt. & Admin., Inc. v. Palomar Ins. Corp., 590 So.2d 209, 212 (Ala.1991). Thus, our standard of review is de novo. Kingvision Pay-Per-View, Ltd. v. Ayers, 886 So.2d 45, 51 (Ala.2003).

"If the court of another state has personal and subject matter jurisdiction over an individual and enters judgment accordingly, that judgment is entitled to full faith and credit in the courts of this state." Century Int'l Mgmt. v. Gonzalez, 601 So.2d 105, 107 (Ala.Civ.App.1992). The validity of a foreign judgment is determined by reference to the law of the state in which the rendering court sits. Stribling Equip., Inc. v. Crager, 891 So.2d 299, 302 (Ala.2004). "The party challenging the foreign judgment on jurisdictional grounds has the burden to produce evidence to overcome the presumption." Century Int'l Mgmt., 601 So.2d at 107.

The exercise of personal jurisdiction by a state court over a nonresident defendant must comport with the due-process clause of the Fourteenth...