Personal Jurisdiction: City of New York v. A-1 Jewelry & Pawn Inc. et al

U.S. Court of Appeals for the Second Circuit

Personal Jurisdiction

Default Judgment

City of New York v. A-1 Jewelry & Pawn Inc. et al
08-4804-cv; 09-1345-cv
Judges Sack, Wesley and Eaton

Background: The defendant-appellants are retail firearms dealers located in South Carolina and Georgia. The City of New York brought suit against them and other firearms dealers for public nuisance on the theory that they intentionally or negligently sell firearms in a manner susceptible to illegal trafficking to New York City. Both the defendants had challenged personal jurisdiction and were denied. Eventually both defendants defaulted and judgment was entered for the city. The defendants appealed on the issue of personal jurisdiction, arguing that the default judgment should not have been entered.

Ruling: The issue before the court was whether a defendant who repeatedly moves to dismiss for lack of personal jurisdiction, but then withdraws from the litigation after those motions are denied, is permitted to attack an ensuing default judgment on the grounds that it is void for lack of personal jurisdiction. The court held that by appearing before the district court to litigate matters is an appearance and a waiver of the jurisdictional defense.

Frederick A. Brodie of Pillsbury Winthrop Shaw & Pittman LLP, and Eric Proshansky, assistant corporation counsel for the City of New York for the plaintiff-appellee; Justin S. Kahn of the Kahn Law Firm and John F. Renzulli of the Renzulli Law Firm LLP for the defendant-appellants