Friday, December 27, 2013

Bank of Montreal v. Olafsson case brief

Bank of Montreal v. Olafsson case brief summary
648 F.2d 1078 (1981)

CASE SYNOPSIS
Plaintiff appealed a default judgment entered by the United States District Court for the Eastern District of Michigan in favor of defendant under Fed. R. Civ. P. 60 (b)because the judgment was entered in excess of the power of the trial court where plaintiff sought recovery of note due.

CASE FACTS
Plaintiff filed suit to recover money due through promissory notes and an overdraft. A default judgment was entered against defendant. Defendant moved to set aside the judgment because he was never properly served a copy of the complaint and defendant had filed for bankruptcy prior to plaintiff's pursuit of the action. Defendant alleged that the trial court had no subject matter jurisdiction because the requisite diversity of citizenship was lacking.

DISCUSSION

  • The court held that default judgment was properly vacated under Fed. R. Civ. P. 60 (b)(6) because the judgment was in excess of the power of the court. 
  • There was a lack of federal jurisdiction and the dispute could have been more fairly and completely adjudicated in the country where the loan was made. 
  • The court affirmed the judgment of the district court.
CONCLUSION
Affirmed the judgment of the district court that granted defendant's request to set aside a default judgment and dismissed the plaintiff's case for lack of subject matter jurisdiction because of the lack of federal jurisdiction and the equities of the case under the civil rules.

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