Bank of Montreal, a Foreign Corporation v. Jack Kough, AKA John Keller Kough

Jack Kough (“Kough”) appeals from a judgment of the United States District Court for the Northern District of California, Renfrew, J., recognizing and enforcing a money judgment obtained against him by default in British Columbia by the Bank of Montreal (the “Bank”), and dismissing his counterclaims as res judicata. He contends that the District Court erred in: (1) determining that the personal jurisdiction requirements of California Code of Civil Procedure (“CCP”) §§ 1713 et seq. for the enforcement of a foreign money judgment were satisfied by his contacts with British Columbia; and (2) dismissing his counterclaims as res judicata. We affirm.

I

Kough was a minority shareholder (49%) of Arvee Cedar Mills, Ltd. (“Arvee”), a British Columbia corporation situated and doing business in that province. He was also an officer and member of the Board of Directors of Arvee, which did business with the Bank of Montreal, a foreign corporation. On August 8, 1973, Kough, with one Merlin William Thompson entered into a guarantee agreement, executed in British Columbia after several meetings of negotiation in the province, whereby he and Thompson agreed to guarantee the payment of all present…