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Courts generally require personal or quasi in rem jurisdiction over the defendant; (14) however, for quasi in rem purposes, the Fourth and Ninth Circuits currently disagree as to whether the property must bear a connection to the dispute before it can serve as a basis for jurisdiction in enforcement actions.
(26) In other words, "to determine the existence of the debt as an original matter," courts require minimum contacts to give rise to personal jurisdiction, or property that is related to the cause of the action to give rise to quasi in rem jurisdiction.
(14.) See, e.g., Frontera, 582 F.3d at 396 ("[T]he numerous other courts to have addressed the issue have each required personal or quasi in rem jurisdiction.") (collecting cases).
is not required to establish a basis for exercise of personal jurisdiction over the judgment debtor," with no simultaneous mention of a need for a quasi in rem, property-based alternative.
Upholding the reasoning of the circuit court of Cook County, foreclosure proceedings under the Illinois Mortgage Foreclosure Law (735 ILCS 5/15-1101 et seq) are not in rem, but quasi in rem actions, the Illinois Supreme Court has held.
In McQueen, the circuit court issued a detailed decision dismissing the complaint, holding that foreclosure proceedings are quasi in rem proceedings and are not exempt from the general rule that lawsuits against deceased persons are nullities.
The court then explained the difference between "in rem" and "quasi in rem" actions.
Quasi in rem actions, on the other hand, are brought against people, not the subject property.
The factors then to be considered under the China Trade test are the following: '(1) frustration of a policy in the enjoining forum; (2) the foreign action would be vexatious; (3) a threat to the issuing court's in rem or quasi in rem jurisdiction; (4) the proceedings in the other forum prejudice other equitable considerations; or (5) adjudication of the same issues in separate actions would result in delay, inconvenience, expense, inconsistency, or a race to judgment.' China Trade, above at 35." [Slip op.
The Illinois Supreme Court in June upheld decisions of the Circuit Court of Cook County, finding that mortgage foreclosure actions are quasi in rem proceedings.
Normally, courts would look to the general rules of civil procedure to determine this question, but the question in this instance is dependent upon whether a foreclosure proceeding is characterized as in rem or quasi in rem.
To answer this question, the court distinguished in rem and quasi in rem proceedings.