Milliken v. Meyer, No. 66

• Court: United States Supreme Court
• Writing for the Court: DOUGLAS
• Citation: 311 U.S. 457,61 S.Ct. 339,85 L.Ed. 278,132 A.L.R. 1357
• Decision Date: 23 December 1940
• Docket Number: No. 66
• Parties: MILLIKEN et al. v. MEYER

311 U.S. 457 61 S.Ct. 339 85 L.Ed. 278 MILLIKEN et al.

v.

MEYER.

No. 66. Argued Dec. 13, 1940. Decided Dec. 23, 1940. Rehearing Denied Jan. 20, 1941.

See 312 U.S. 712, 61 S.Ct. 548, 85 L.Ed. —-.

Mandate Conformed to March 3, 1941. See 111 P.2d 232.

Page 458

Messrs. Jean S. Breitenstein, of Denver, Colo., and Edward M. Freeman, of New York City, for petitioners.

Mr. Fred S. Caldwell, of Denver, Colo., for respondent.

Mr. Justice DOUGLAS delivered the opinion of the Court.

The Colorado Supreme Court held null and void a judgment of the Wyoming court against the claim of Milliken that that judgment was entitled to full faith and credit under the Federal Constitution. 101 Colo. 564, 76 P.2d 420; 105 Colo. 532, 100 P.2d 151. The case is here on a petition for certiorari which we granted, 310 U.S. 622, 60 S.Ct. 1099, 84 L.Ed. 1395, because of the substantial character of the federal question which is raised.

The controversy is over a 1/64th interest in profits from operation of certain Colorado oil properties. Transcontinental¹ on August 31, 1922, contracted to pay Meyer

Page 459

4/64ths of those profits. Milliken asserted a claim to a two-thirds interest in that 4/64ths share. As a settlement of that dispute Transcontinental on May 3, 1924, contracted to pay Milliken a 2/64ths interest and Milliken assigned² to Transcontinental all his claims against Meyer pertaining to the lands in question and to Meyer's 4/64ths interest in the profits.

Later Milliken instituted suit in the Wyoming court alleging a joint adventure with Transcontinental and Meyer and charging a conspiracy on their part to defraud him of his rights. He sought a cancellation of the contracts of May 3, 1924, and an accounting from Transcontinental and Meyer. Meyer, who was asserted to be a resident of Wyoming, was personally served with process in Colorado pursuant to the Wyoming statutes;³ but he made no appearance in the Wyoming cause.⁴ Transcontinental appeared and answered. The court found that there was no joint venture between Milliken and

Page 460

Transcontinental; that the contracts of May 3, 1924, were valid; and that the action against Transcontinental should be dismissed with prejudice. It found, however, that there was a joint venture between Milliken and Meyer; that they were entitled to share equally in 6/64ths of the net profits; and that, while Meyer had regularly received 4/64ths, he had refused to account to Milliken for his 1/64th part. The court did not purport to decree the 1/64th interest to Milliken or anyone else but entered an in personam judgment against Meyer for the profits which Meyer had withheld from Milliken, together with interest thereon; and enjoined Transcontinental from paying, and Meyer from receiving, more than 3/64ths of the net profits. This was on July 11, 1931. Thereafter the 1/64th share was withheld from Meyer and paid over to Milliken.⁵ In 1935 respondent instituted this suit⁶ in the Colorado court praying, inter alia, for a judgment against Milliken for the sums withheld under the Wyoming judgment and paid to Milliken, for an injunction against Milliken attempting to enforce the Wyoming judgment, and for a decree that the Wyoming judgment was a nullity for want of jurisdiction over Meyer or his property. The bill alleged, inter alia, that Meyer at the time of service in the Wyoming court had long ceased to be a resident of Wyoming and was a resident of Colorado; that the service obtained on him did

Page 461

not give the Wyoming court jurisdiction of his person or property; and that such judgment was violative of the due process clause of the Fourteenth Amendment. Milliken's answer alleged, inter alia, that Meyer was a resident of Wyoming at the time of the Wyoming action and that the Wyoming judgment was entitled to full faith and credit in Colorado under the Federal Constitution. Article 4, § 1. The Colorado court, on issues joined, found that Meyer was domiciled in Wyoming when the Wyoming suit was commenced, that the Wyoming statutes for substituted service were constitutional, that the affidavit for constructive service⁷ on Meyer was filed in good faith, substantially conformed to the Wyoming statute and stated the truth, that Wyoming had jurisdiction over the person of Meyer, that the Wyoming decree⁸ was not void, and that the bill should be dismissed.

That judgment was reversed by the Supreme Court of Colorado. It did not pass on the question of whether or not the Wyoming court had jurisdiction of the parties and subject matter. It held that the Wyoming decree was void on its face because of an irreconcilable contradiction between the findings and the decree. In its view the finding of the Wyoming court that Milliken's assignment of May 3, 1924, to Transcontinental of his claims against Meyer was valid, deprived the court of any ground upon which it could predicate a judgment against Meyer, since

Page 462

the only basis for an action by Milliken against Meyer rested upon the claim before its assignment.

Where a judgment rendered in one state is challenged in another, a want of jurisdiction over either the person or the subject matter is of course open to inquiry. Grover & Baker Sewing Machine Co. v. Radcliffe, 137 U.S. 287, 11 S.Ct. 92, 34...