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A quasi in rem legal action (Latin, "as if against a thing") is a legal action based on property rights of a person absent from the jurisdiction.In the American legal system the state can assert power over an individual simply based on the fact that this individual has property (bank account, debt, share of stock, land) in the state.
Harris v. Balk, 198 U.S. 215 (1905), was a United States Supreme Court case that exemplified the idiosyncratic types of jurisdiction state courts (and therefore plaintiffs) could assert through quasi in rem actions before International Shoe's (1945) [1] "minimum contacts" test replaced Pennoyer's (1878) [2] principles of "power and notice".
Pennoyer v. Neff, 95 U.S. 714 (1878) was a decision by the Supreme Court of the United States in which the Court held that a state court can only exert personal jurisdiction over a party domiciled out-of-state if that party is served with process while physically present within the state.
In rem jurisdiction ("power about or against 'the thing ' " [1]) is the power a court may exercise over property (either real or personal) or a "status" against a person over whom the court does not have in personam jurisdiction. Jurisdiction in rem assumes the property or status is the primary object of the action, rather than personal ...
Because the need for minimum contacts is a matter of personal jurisdiction (the power of the court to hear the claim with respect to a particular party) instead of subject matter jurisdiction (the power of the court to hear this kind of claim at all), a party can explicitly or implicitly waive their right to object to the court hearing the case.
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In personam is a Latin phrase meaning "against a particular person". In a lawsuit in which the case is against a specific individual, that person must be served with a summons and complaint (in England & Wales known as Particulars of Claim (CPR 1999)) to give the court jurisdiction to try the case, and the judgment applies to that person and is called an "in personam judgment".
Article III of the United States Constitution permits federal courts to hear such cases, so long as the United States Congress passes a statute to that effect. However, when Congress passed the Judiciary Act of 1789, which authorized the newly created federal courts to hear such cases, it initially chose not to allow the lower federal courts to possess federal question jurisdiction for fear ...