LARKIN, Judge.
Appellant challenges the district court's denial of its motion to dismiss for lack of jurisdiction, arguing that the district court erred in failing to determine whether its exercise of in rem jurisdiction offends traditional notions of fair play and substantial justice. Because all assertions of in rem jurisdiction must satisfy the fairness standard set forth in International Shoe, the district court erred in denying the motion to dismiss without considering whether the exercise of jurisdiction comports with fair play and substantial justice. We therefore reverse and remand.
This appeal stems from a dispute regarding ownership of a 1775 John Ward Gilman
On August 13, Lea commenced a declaratory-judgment action in district court, seeking a declaration that he is the exclusive owner of the plate. New Hampshire moved to dismiss the action for lack of jurisdiction, arguing, in part, that New Hampshire does not have sufficient minimum contacts with Minnesota to satisfy the requirements of due process. The district court denied New Hampshire's motion, reasoning that jurisdiction was authorized under Minn. R. Civ. P. 4.04(a)(4), which provides for jurisdiction "[w]hen the subject of the action is real or personal property within the state in or upon which the defendant has or claims a lien or interest, or the relief demanded consists wholly or partly in excluding the defendant from any such interest." The district court concluded that the underlying declaratory-judgment action is a "pure" in rem action and that "it is not necessary to establish whether personal jurisdiction comports with due process in a pure in rem action." New Hampshire requested permission to file a motion for reconsideration,
Did the district court err by determining that it was not required to apply the fairness standard set forth in International Shoe to this in rem action?
The existence of "jurisdiction is a question of law that we review de novo." In re Comm'r of Pub. Safety, 735 N.W.2d 706, 710 (Minn.2007) (quotation omitted). An order denying a motion to dismiss for lack of jurisdiction is appealable as of right. See Stanek v. A.P.I., Inc., 474 N.W.2d 829, 831 (Minn.App.1991) (stating this principle in a personal-jurisdiction context), review denied (Minn. Oct. 31, 1991).
In International Shoe, the United States Supreme Court held that "due process requires ... that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice." 326 U.S. at 316, 66 S.Ct. at 158 (quotation omitted). The United States Supreme Court stated that
Id. at 319, 66 S.Ct. at 160.
Later, in Shaffer, the United States Supreme Court stated that "the time [was] ripe to consider whether the standard of fairness and substantial justice set forth in International Shoe should be held to govern actions in rem as well as in personam." 433 U.S. at 206, 97 S.Ct. at 2581. The Court explained the reason for applying the International Shoe standard to exercises of in rem jurisdiction as follows:
Id. at 207, 97 S.Ct. at 2581 (quotation and footnotes omitted).
The Court considered the long history of jurisdiction based solely on the presence of property in a state and said, "[t]his history must be considered as supporting the proposition that jurisdiction based solely on the presence of property satisfies the demands of due process, but it is not decisive." Id. at 211-12, 97 S.Ct. at 2583-84 (citation omitted). The Court reasoned that "`traditional notions of fair play and
In arriving at this conclusion, the Court recognized that in rem jurisdiction is of three types: in rem, quasi in rem type I, and quasi in rem type II.
The concurring opinions in Shaffer recognize that the Court intended to announce a rule of law that would apply to all exercises of state court in rem jurisdiction-except, perhaps, where no other forum is available to the plaintiff. For example, Justice Powell stated that he "would explicitly reserve judgment ... on whether the ownership of some forms of property whose situs is indisputably and permanently located within a State may, without more, provide the contacts necessary to subject a defendant to jurisdiction within the State to the extent of the value of the property." Id. at 217, 97 S.Ct. at 2586 (Powell, J., concurring). And Justice Stevens wrote:
Id. at 219, 97 S.Ct. at 2587-89 (Stevens, J., concurring). Clearly, the majority decision
The issue of whether the Shaffer holding extends to true in rem or quasi in rem type-I jurisdiction is one of first impression in Minnesota. See generally State v. Cont'l Forms, Inc., 356 N.W.2d 442, 444 (Minn.App.1984) (citing Shaffer for the proposition that "all assertions of state-court jurisdiction must be evaluated according to the standards set forth in International Shoe and its progeny" without considering or deciding whether the holding extends to true in rem or quasi in rem type-I jurisdiction (quotation omitted)). In this case, the district court declined to follow Shaffer, concluding that it is not necessary to establish that an exercise of jurisdiction comports with due process in a pure in rem action.
"Dictum is a statement in an opinion that could have been eliminated without impairing the result of the opinion." State v. Misquadace, 629 N.W.2d 487, 490 n. 2 (Minn.App.2001), aff'd, 644 N.W.2d 65 (Minn.2002). Dictum is divided into two categories: judicial dictum and obiter dictum. Obiter dictum is Latin for "something said in passing," Black's Law Dictionary 1177 (9th ed. 2009), whereas judicial dictum involves a court's expression of its "opinion on a question directly involved and argued by counsel though not entirely necessary to the decision," State v. Rainer, 258 Minn. 168, 177, 103 N.W.2d 389, 396 (1960). Judicial dictum constitutes "an expression emanating from the judicial conscience," which is entitled "to much greater weight than mere obiter dictum and should not be lightly disregarded." Id. at 177-78, 103 N.W.2d at 396; see also In re Estate of Bush, 302 Minn. 188, 207, 224 N.W.2d 489, 501 (1974) ("Even dictum, if it contains an expression of the opinion of the court, is entitled to considerable weight."). The Supreme Court of Wisconsin has explained that
Chase v. Am. Cartage Co., 176 Wis. 235, 186 N.W. 598, 598-99 (1922).
Shaffer, 433 U.S. at 207-08, 97 S.Ct. at 2581 (footnotes omitted). And the Supreme Court has subsequently done nothing to cast doubt on the Shaffer holding. See, e.g., Burnham v. Superior Court of Cal., 495 U.S. 604, 622, 110 S.Ct. 2105, 2116, 109 L.Ed.2d 631 (1990) (stating that the Court was "in no way receding from or casting doubt upon the holding of Shaffer" in holding that an exercise of personal jurisdiction based on service on a defendant while he is temporarily present in the forum state comports with traditional notions of fair play and substantial justice); Rush v. Savchuk, 444 U.S. 320, 327, 100 S.Ct. 571, 577, 62 L.Ed.2d 516 (1980) (stating that Shaffer held that "all assertions of state-court jurisdiction must be evaluated according to the standards set forth in International Shoe and its progeny").
Moreover, the authority that the district court relied on does not persuade us that it is appropriate to narrowly construe the Supreme Court's holding in Shaffer. The district court relied primarily on Cable News Network L.P. v. CNNews.com, 162 F.Supp.2d 484 (E.D.Va.2001), aff'd in part, vacated in part, 56 Fed.Appx. 599 (4th Cir.2003), and other federal district court cases brought under the Anticybersquatting Consumer Protection Act of 1999 (ACPA).
Id. at 491 (citation omitted).
Although the jurisdictional holding in Cable News Network was affirmed on appeal,
Given the Fourth Circuit's conclusion that Shaffer applies to all in rem actions, we are not persuaded by the federal district court's reasoning in Cable News Network regarding Shaffer's reach. Nor are we persuaded by the decisions of other federal district courts that have followed Cable News Network. Our review of the caselaw relied on by the district court, as well as our independent research, simply does not reveal persuasive authority, much less precedential authority, supporting the conclusion that the Shaffer holding is non-authoritative dictum. We therefore conclude that Shaffer has great authoritative weight. Our reasoning is aptly summarized by the United States Court of Appeals for the First Circuit:
In sum, because we respect the holding of the United States Supreme Court in Shaffer and give it considerable weight, we hold that all assertions of in rem jurisdiction must be evaluated according to the standards set forth in International Shoe and more recently discussed in Burnham. See Burnham, 495 U.S. at 622, 110 S.Ct. at 2116 ("[T]he Due Process Clause requires analysis to determine whether traditional notions of fair play and substantial justice have been offended." (quotation omitted)).
In so holding, we reject Lea's other arguments in support of the district court's ruling. For example, Lea argues that in adopting the ACPA, Congress intended to narrow or implicitly overrule Shaffer. But courts have not treated Congress's passage of the ACPA as overruling Shaffer. See Harrods, 302 F.3d at 224-25 (conducting a due-process analysis under Shaffer in an ACPA case). Lea also argues that if Shaffer applies to in rem actions in general, declaratory-judgment actions should be exempted from its holding under the lack-of-an-available-forum exception. See Shaffer, 433 U.S. at 211 n. 37, 97 S.Ct. at 2583 n. 37. New Hampshire counters that the record does not show that no other forum is available. Because the district court did not address this argument, the record is not adequately developed regarding the availability of other forums. The issue therefore is not properly before this court for review. See Thiele v. Stich, 425 N.W.2d 580, 582 (Minn.1988) (stating that an appellate court generally will not consider matters not argued to and considered by the district court); Truesdale v. Friedman, 267 Minn. 402, 404, 127 N.W.2d 277, 279 (1964) (stating that the record must be "sufficient to show the alleged errors and all matters necessary for consideration of the questions presented").
Finally, Lea moves to strike certain statements from New Hampshire's brief because the statements fail to cite the record, cite to materials not contained in the record, and assert facts contrary to the findings of fact made by the district court in its order. The challenged statements consist of background information that is irrelevant to the jurisdictional issue presented on appeal, which is purely one of law. Because we need not, and do not, rely on the purportedly improper statements in deciding the jurisdictional issue presented in this appeal, the motion to strike is denied as moot. See Drewitz v. Motorwerks, Inc., 728 N.W.2d 231, 233 n. 2 (Minn.2007) (denying a motion to strike as moot when court did not rely on the challenged material).
Shaffer requires that all assertions of in rem jurisdiction satisfy the fairness standard set forth in International Shoe. Because the district court did not determine whether its assertion of in rem jurisdiction is consistent with due process, we reverse the district court's denial of New Hampshire's motion to dismiss and remand for the district court to determine whether an exercise of in rem jurisdiction in this case comports with traditional notions of fair play and substantial justice.