COURT OF APPEALS DECISION DATED AND RELEASED September 12, 1995 |
NOTICE |
A party may file with the
Supreme Court a petition to review an adverse decision by the Court of
Appeals. See § 808.10 and
Rule 809.62, Stats. |
This opinion is subject to
further editing. If published, the
official version will appear in the bound volume of the Official Reports. |
No. 95-1536-FT
STATE
OF WISCONSIN IN COURT OF
APPEALS
DISTRICT I
BANK ONE, MILWAUKEE,
N.A.,
Plaintiff-Appellant,
v.
LINDA L. HARRIS,
Defendant-Respondent.
APPEAL from an order of
the circuit court for Milwaukee County:
JACQUELINE D. SCHELLINGER, Judge.
Reversed and cause remanded with directions.
WEDEMEYER, P.J.[1] Bank One, Milwaukee, N.A., appeals from an
order entered in small claims court in favor of Linda L. Harris, whereby the
trial court granted Harris's motion to vacate a replevin judgment Bank One
previously obtained against her. Bank
One claims that the trial court erred in granting the motion to vacate on the
basis of insufficient service of process.
Because Bank One complied with the appropriate statutory service of
process requirements, this court reverses the order and remands with
directions.
I. BACKGROUND
Bank One initiated a
small claims action seeking a replevin judgment against Harris because she was
in default on her car loan. The action
did not seek a personal judgment against Harris; instead, it sought possession
of the car. Personal and substituted
service attempts were unsuccessful. On
September 19, 1994, Bank One mailed the summons and complaint to Harris's last
known address. The return date listed
in the summons and complaint was September 20, 1994. On September 19, 1994, Bank One also forwarded a publication
summons to The Daily Reporter for publication once in each of three
consecutive weeks. The publication
summons indicated that the adjourned return date was October 18, 1994.
It is undisputed that
Harris received the mailed summons and complaint on September 21, 1994. Harris did not appear for the October 18
hearing. Accordingly, a replevin
judgment for possession of the car was entered in favor of Bank One. Bank One repossessed the car on October 21,
1994.
On October 31, 1994,
Harris filed a motion to vacate the judgment.
The trial court granted this motion on the grounds that the trial court
lacked personal jurisdiction over Harris because of insufficient service of
process. Specifically, the trial court
concluded that in order to accomplish proper service via publication, Bank One
should also have mailed to Harris a summons and complaint that indicated the
adjourned return date. Bank One appeals
from this order.
II. DISCUSSION
The
issue in this case is whether the trial court's analysis of the statutes
regarding service of process was correct.
The trial court concluded that in order to accomplish effective service,
the statutes required not only that the summons be published, but also that a
summons and complaint reflecting the adjourned return date be mailed to
Harris's last known address. It is
undisputed that the actual publication of the summons was accomplished. The only dispute is whether the statutes
also required Bank One to mail to Harris the identical document that was published. This is a question of law that this court
reviews de novo. See Bucyrus-Erie
Co. v. DILHR, 90 Wis.2d 408, 417, 280 N.W.2d 142, 146-47 (1979) (the
construction of a statute and the application of a statute to a particular set
of facts are questions of law). This
court's review of the appropriate statutes, under the facts presented in this
case, demonstrates that the trial court erred in its conclusion.
Small claims actions are
governed by Chapter 799, Stats.
Section 799.12, Stats.,
provides guidelines for service of summonses under this chapter. Section 799.16, Stats., however, provides particular instruction regarding
service by publication in “[a]ctions in rem or quasi in rem.”
Before determining which
statute governs this case, it is necessary to determine whether the instant
action is an action in rem or an action in personam. An action in rem refers to an action
“where the direct object is to reach and dispose of property owned” by an
individual. See Black's Law Dictionary 404 (5th ed.
1983). An action in personam, in
contrast, is an action “seeking judgment against a person ... and based on
jurisdiction of his person, as distinguished from a judgment against his
property.” Id. On this basis, this court concludes that the
instant case is an action in rem.
This particular case constitutes an action in rem because Bank
One sought only possession of Harris's car.[2] Having concluded that this case involved an
action in rem, the only issue remaining is whether the statutes require
Bank One to mail a copy of the publication summons to Harris in addition to
actually publishing it. To resolve this
issue, this court looks to the relevant statutes.
Section 799.16, Stats., provides in pertinent part:
(1) Basis. In proceedings in rem
or quasi in rem no judgment shall be entered against a defendant for an amount
in excess of the value of the property unless based on personal or substituted
service as provided in s. 799.12(1), or unless the defendant appears without
objecting to the jurisdiction of the court over defendant's person.
(2) Adjournment and publication. When the defendant has not been served with
personal or substituted service pursuant to s. 799.12(1) and does not
waive the defense of lack of jurisdiction over the person under
s. 802.06(3) and the court has jurisdiction over the property, service may
be made on the defendant by publication.
If service is to be made by publication, the proceeding shall be
adjourned to a day certain by the court, and a notice in substantial conformity
with sub. (4) shall be published as a class 3 notice, under ch. 985.
These statutes are not
ambiguous and, therefore, this court's interpretation is limited to the
language contained within the statutes.
In re Jamie L., 172 Wis.2d 218, 225, 493 N.W.2d 56, 59
(1992). Subsection (1) requires service
in accord with § 799.12(1), Stats.,
only if a judgment is entered in excess of the value of the
property. Bank One did not seek a
judgment in excess of the value of Harris's car. Therefore, subsection (1), which requires service in compliance
with § 799.12(1), does not apply to this case.
This case is governed by
§ 799.16(2), Stats., which
indicates that where service is by publication in an in rem action, a
party may accomplish service by publication without also mailing a copy
of the publication summons to the defendant.[3] Accordingly, this court concludes that
proper service, via publication, pursuant to § 799.16(2), Stats., was accomplished by Bank
One. As a result, the trial court had
jurisdiction to grant the replevin judgment and this judgment should not have
been vacated on the grounds that service of process was insufficient.
This court is not
persuaded by Harris's argument that § 799.12(1), Stats., governs service of process in all small claims
cases and because this section requires mailing, a mailing requirement must
also be read into § 799.16(2), Stats. Where a general statute conflicts with a
specific statute, the specific statute prevails. Fred Rueping Leather Co. v. City of Fond du Lac,
99 Wis.2d 1, 5, 298 N.W.2d 227, 230 (Ct. App. 1980). Section 799.16, Stats.,
is the more specific statute when the action is in rem and when service
is by publication. Under the rules
governing statutory construction, this court applies § 799.16(2), rather
than the more general § 799.12(1) and, therefore, must reject Harris's
contention.
This result is also
supported by another rule of statutory construction—expressio unius est
exclusio alterius—the expression of one thing is the exclusion of
another. See Gottlieb v.
City of Milwaukee, 90 Wis.2d 86, 95, 279 N.W.2d 479, 483 (Ct. App.
1979). By specifically stating that a
party in an in rem action (where the mode of service is by publication)
can accomplish service solely by publishing the summons, and by failing to
include within that statute that the summons must also be mailed, the
legislature's intent not to require a mailing under these circumstances may be
presumed. See Fred Rueping,
99 Wis.2d at 5, 298 N.W.2d at 230.
III. CONCLUSION
Thus, this court
reverses the order entered by the trial court.
This court's review of the record, however, revealed that Harris also
claimed that the judgment should be vacated because: (1) Bank One did not
comply with § 425.104, Stats.,
which requires a plaintiff to send a notice of right to cure default to a
defendant; and (2) additional violations of Wisconsin's Consumer Act
justify vacating the replevin judgment.
Because the trial court decided the motion to vacate on service of
process grounds, these other issues were not addressed. It is the duty of the trial court to
determine whether other grounds exist that demand that the replevin judgment be
vacated. Accordingly, this court
remands this case to the trial court with directions to conduct a hearing to
determine whether the additional grounds alleged in Harris's original motion
justify vacating the replevin judgment.
If the trial court determines that the additional grounds are
insufficient to vacate the replevin judgment, the trial court should reinstate
the original replevin judgment. If the
trial court determines that the additional grounds justify vacating the
replevin judgment, the trial court should enter a new order vacating the replevin
judgment.
By the Court.—Order
reversed and cause remanded with directions.
This opinion will not be
published. See Rule 809.23(1)(b)4, Stats.
[2] Harris argues that
the $125 sought in costs transforms this into an in personam
action. This court disagrees. Section 799.16(4)(b), Stats., specifically contemplates a
recovery of costs.
This court also rejects Harris's claim that because the suit papers named Harris as the defendant rather than naming the car as the defendant, this action has to be classified as one in personam. Naming the individual owner of the object to be repossessed does not make the action one in personam. The determinative factor is whether the complaint demands specific recovery for the chattel (an in rem action) or for damages from the person (an in personam action). Accordingly, this court rejects both of Harris's contentions.