Not what you're
looking for? Try an advanced search.
Buy This Entire Record For
UNITED SERVICES AUTO. ASS'N v. CREGOR
September 30, 1985
UNITED SERVICES AUTOMOBILE ASSOCIATION, PLAINTIFF,
JOHN M. CREGOR, JR. AND HEIDI CREGOR, WILLIAM MCNALLY AND LORRAINE MCNALLY, DEFENDANTS.
The opinion of the court was delivered by: Bua, District Judge.
Before the Court is defendants' motion to dismiss for lack of
personal jurisdiction and proper notice or, in the alternative,
to transfer this case to the United States District Court for the
District of Hawaii. For the reasons stated herein, defendants'
motions to dismiss and to transfer are denied.
The plaintiff United Services Automobile Association (USAA) is
a citizen of the State of Texas while the defendants in this
action, Heidi and John Cregor, are citizens of the State of
Hawaii. The plaintiff seeks a declaratory judgment by this court
removing any responsibility on the plaintiff's part for defending
and indemnifying the Cregors in an underlying action brought by
William and Lorraine McNally. The McNallys, citizens of Illinois,
previously brought an action against the Cregors in the Illinois
courts claiming that the Cregors committed fraud and breach of
contract when the Cregors sold their Wilmette, Illinois home to
the McNallys in April of 1983. USAA had issued three homeowners'
insurance policies to the Cregors between 1980, when the Cregors
Wilmette, and October of 1983, after they had moved to Hawaii.
After they were served in the McNally lawsuit, the Cregors
tendered the defense of that lawsuit to USAA. USAA subsequently
filed this declaratory judgment action.
The Cregors move to dismiss this declaratory judgment action on
grounds of improper notice and lack of personal jurisdiction. In
the alternative, the Cregors seek transfer of this action to the
United States District Court for the District of Hawaii.
Rule 4(c)(2)(C)(ii) of the Federal Rules of Civil Procedure
provides the requirements for proper notice by mail. The above
section states that a return envelope with prepaid postage must
be enclosed with the summons and the complaint. In the present
case, plaintiff apparently failed to submit the return envelope
with prepaid postage. However, plaintiff's technical error was an
oversight which did not greatly prejudice the defendant, if at
all. Adequate notice was given and therefore this technical
failure creates no basis for dismissal of the action. SCM
Corporation v. Brotherhood International Corp., 316 F. Supp. 1328,
1335 (S.D.N.Y. 1970).
Chapter 110, Section 2-209 of the Illinois Revised Statutes
governs personal jurisdiction under the Illinois Long-Arm
Statute. It provides the following grounds for assertion of
personal jurisdiction over a nonresident:
(1) The transaction of any business within this
(2) The commission of a tortious act within this
(3) The ownership, use, or possession of any real
Buy This Entire Record For