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Harris v. Balk, 198 U.S. 215 (1905) p81.

Facts:

Procedure:

Balk sued Harris in North Carolina for the $180. Balk objected that the Maryland court had not had jurisdiction to extinguish the debt owed him by Harris. His theory was the situs was in North Carolina.

Issue:

Did the Maryland court have jurisdiction?

Rule:

A court can extinguish another's claim on a out of state person if there is a third party that has contact with both states. EX: This holding enabled the Maryland courts to extinguish Balk's claim even though Balk had no contact with Maryland.

Holding:

The Maryland court did have jurisdiction.

Rationale:

Because Maryland did have jurisdiction, North Carolina must give the Maryland judgement full faith and credit extinguishing Balk's claim. The obligation of a debtor topay his debts goes with him wherever he goes. Therefore the situs is unimportant.

Policy/Notes: