Abdulhadi v. Bavarian Auto Sales, L.L.C.

86 Va. Cir. 249, 2013 WL 8213431, 2013 Va. Cir. LEXIS 11
CourtGoochland County Circuit Court
DecidedFebruary 11, 2013
DocketCase No. CL11-203
StatusPublished

This text of 86 Va. Cir. 249 (Abdulhadi v. Bavarian Auto Sales, L.L.C.) is published on Counsel Stack Legal Research, covering Goochland County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abdulhadi v. Bavarian Auto Sales, L.L.C., 86 Va. Cir. 249, 2013 WL 8213431, 2013 Va. Cir. LEXIS 11 (Va. Super. Ct. 2013).

Opinion

By Judge Timothy K. Sanner

The purpose of this letter is to provide the Court’s rulings with respect to the above-referenced case. This case was referenced by the name in which it was filed; the Court is mindful that Mr. Alajmi’s name has been corrected since this matter has come before our court. The Court will hereafter refer to him as “Alajmi” and to the defendant as “Bavarian.”

Counsel is well familiar with the facts of the case, and the Court will not go into them in great detail. Generally speaking, they are properly set forth in the proffer contained in pages 8 through 14 of the transcript from the February 28,2012, hearing. They also appear to be properly set forth in pages 2 through 8 of Bavarian’s brief in support of its motion to vacate and set aside foreign default judgment. Generally, the case involved the sale of a 2000 Jeep Cherokee by Bavarian, a Virginia LLC, to Alajmi, an Oregon resident, who was overseas at the time of the transaction. Bavarian placed the Jeep on eBay for auction, with reserve, and Alajmi was the ultimate winning bidder. The parties completed the paperwork on the transaction in late January of 2011, and, ultimately, the vehicle was shipped to Alajmi in Oregon. Thereafter, Alajmi became dissatisfied with the vehicle and filed an action against Bavarian in the Circuit Court of Washington County, Oregon. Service of process was effected on August 1, 2011, by Deputy J. F. Henley of the Goochland County Sheriff’s Office on [250]*250Jonathan Davis, who was noted on the return of service as a managing agent (manager) of Bavarian. Bavarian did not answer nor appear in the Circuit Court of Washington County, and, on September 29,2011, a default judgment was entered against Bavarian.

On November 7,2011, Alajmi filed in the Clerk’s Office of the Circuit Court of Goochland County the Oregon default judgment against Bavarian, seeking its domestication pursuant to the Virginia Uniform Enforcement of Foreign Judgments Act (Virginia Code § 8.01-465.1 etseq.). Bavarian has filed this action seeking to vacate and set aside this default judgment, contending that Bavarian was not properly served under the Oregon Rules of Civil Procedure and that the Oregon court lacked personal jurisdiction over Bavarian.

Bavarian initially contends that service of process was not properly effected under ORCP 7(D)(3Xc) which provides how service may be effected upon a limited liability company. Bavarian takes this position primarily because it is stipulated that Jonathan Davis, the person upon whom process was served, was not a managing agent of Bavarian. Alajmi countered that service is proper because Jonathan Davis had apparent authority to act as a manager of Bavarian. Alternatively, Alajmi contends that Bavarian was properly served because Jonathan Davis was a “clerk on duty in the office of the registered agent” upon whom service could be made under the pertinent rule and that the service that was effected was reasonably calculated to provide notice and opportunity to defend and thus also served as a proper basis for service of process.

The Court will first address the contention that Jonathan Davis’s apparent authority to accept service was legally sufficient under the law of Oregon.

It is stipulated that Jonathan Davis was not a manager of Bavarian. While Alajmi properly sets forth general principles of agency law established in the cited Oregon cases, the Court agrees with Bavarian that they are inapplicable to the issue here. The Court agrees that the cases of Pham v. Faber, 152 Or. App. 634, 955 P.2d 257 (1998), and Adkins v. Watrous, 66 Or. App. 252, 673 P.2d 572 (1983), stand for the proposition that, under the Oregon Rules of Civil Procedure, service of process is strictly construed. Given the fact that Jonathan Davis was not a manager of the LLC, service was not properly effected upon him in that capacity, despite the representations contained in the proofs of service.

Alternatively, Alajmi contents that Jonathan Davis could be construed as a clerk on duty in the office of a registered agent, thus, service of process was proper given that provision of the Oregon rule. The evidence establishes that Mohammad Q. Stwodah, was the registered agent for Bavarian, as well as its sole member. The Court finds from the evidence that the address of 12638 Broad Street Road, Richmond, Virginia 23233, was both the business address as well as the office of the registered agent. Alajmi cites the case of Abbotts v. Bacon, 133 Or. App. 315, 891 P.2d 1321 [251]*251(1995), which contains an excellent discussion of what constitutes a clerk under die pertinent Oregon rule. In this case, the Oregon Court of Appeals notes that the term clerk is not defined in the rules. Having fully considered the legislative history, the Oregon court concluded that the legislature intended the term to encompass those employed in the registered agent’s office who interact with the public, have regular contact with the registered agent, and for whom there is some obligation to pass along documents to the registered agent. Abbotts, at 320.

Having reviewed the evidence in this case, the Court concludes that Jonathan Davis was qualified as a clerk under the pertinent Oregon rule. From reviewing plaintiff’s exhibits 1 through 4, it is plain that Jonathan Davis was an important individual within Bavarian’s office. He was a salesperson; so, consequently, he had contact with the public and particularly with Alajmi in this case. He was substantially involved in the preparation and handling of documents in this case, including the buyer’s order, as well as signing the certificate of title for the vehicle, not only when it was sold by Bavarian, but also when it was purchased in August of 2010. From the proof of service, the Court finds that he was personally served by Deputy Henley. There is no evidence that he resisted receiving the service of process, which is consistent with the other evidence that establishes his importance within the office. While there is no specific evidence before the Court regarding his duty to pass along documents to the registered agent, in this case, the registered agent is also the sole member of the LLC and Jonathan Davis’s employer; consequently, the Court would infer that Jonathan Davis would understand the importance of passing along documents to a person occupying both of those roles with respect to service of process related to an out of state civil action.

The Court next turns to the issue as to whether the evidence supports Alajmi’s contention that the Oregon court had jurisdiction over Bavarian via its long-arm statute, ORCP 4. Alajmi specifically contends that provisions 4(E)(3) and (5) establish personal jurisdiction over Bavarian. The Court will address subsection three first. The Court agrees with Bavarian’s argument set forth in its reply brief as to the inapplicability of subsection three. The evidence does not establish that Bavarian promised to deliver the Jeep to Alajmi in Oregon, but instead Alajmi arranged for shipping from the vehicle’s location in Virginia.

Subsection five, however, is more problematic for Bavarian and involves reconciling the holdings in Ron Tonkin Gran Turismo v. Carruth, 71 Or. App. 81, 691 P.2d 127 (1984), and Amundson v.

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Bluebook (online)
86 Va. Cir. 249, 2013 WL 8213431, 2013 Va. Cir. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abdulhadi-v-bavarian-auto-sales-llc-vaccgoochland-2013.