Ascencio-Sutphen v. McDonald's Corp.

16 Misc. 3d 184
CourtNew York Supreme Court
DecidedApril 9, 2007
StatusPublished
Cited by2 cases

This text of 16 Misc. 3d 184 (Ascencio-Sutphen v. McDonald's Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ascencio-Sutphen v. McDonald's Corp., 16 Misc. 3d 184 (N.Y. Super. Ct. 2007).

Opinion

OPINION OF THE COURT

Lucindo Suarez, J.

The issue in this motion to dismiss the complaint for lack of personal jurisdiction is whether an independent contractor security guard’s assignment at a franchise restaurant can be considered his actual place of business for purposes of securing jurisdiction over him by delivery of service of process upon the franchise manager. This court holds it cannot, as the independent contractor did not hold out the subject location through regular solicitation, advertisement or otherwise as his actual place of business, and such independent contractor status does not give rise to a presumption that the substituted service of process provisions of the statute would be reasonably calculated under all the circumstances to apprise the defendant of the pendency of the action and afford him an opportunity to present his objections.

As reported in the New York City Police Department omniform system complaints form, on December 21, 2004, at 11:30 p.m., at the McDonald’s restaurant at 234 West 42nd Street in Manhattan, plaintiffs Stacy Ascencio-Sutphen and Jeffrey Sutphen got into a physical dispute with defendant security guards Kit Harris and George Morales, and defendant franchise manager Jimmy Olaya, resulting in various causes of action.

Defendant Jimmy Olaya was personally served at his residence in the Bronx by process server Howard Kwastel. Defendant Kit Harris was personally served at his residence in Manhattan by process server Yoler Jean-Baptiste. Defendant George Morales was served at the McDonald’s restaurant at 234 West 42nd Street in Manhattan by delivery of the summons and complaint to John McDonnell, described as a person of suitable age and discretion and business associate, and by mailing a copy of the summons and complaint to the McDonald’s address, by process server Warren Bozarth. Defendants McDonald’s Corporation and ISK Manhattan, Inc. were both served by delivery upon the New York State Secretary of State by process server Diane Koehler.

Upon defendant Morales’ motion to dismiss the complaint against him for lack of personal jurisdiction and plaintiffs’ opposition thereto, this court held a traverse hearing to determine whether defendant George Morales was properly served pursuant to CPLR 308 (2).

[186]*186Morales testified that he has been employed for the last 10 years by both the New York City Police Department and Strategic Security, a private security firm. Strategic Security assigned him to work at the subject McDonald’s restaurant, as well as other locations where he wore a uniform of khaki pants and a black polo shirt that displayed the Strategic Security emblem and the Strategic Security name. He worked at the McDonald’s restaurant between two to four nights per week from June 7, 2005 (the date that John McDonnell received the summons and complaint) to September 2005 (the date that he was no longer assigned to that McDonald’s). He was not paid by McDonald’s, was not an employee of McDonald’s, and never held himself out as an employee of McDonald’s. He signed in and out at the beginning and end of each tour without the need to speak with or receive direction from any supervisory McDonald’s employee. He also testified that John McDonnell was the day shift general manager, and that although he knew of him, and of his position and duties and saw him on occasion, he had no reason or occasion to speak to or with him between June 7, 2005 and September 2005. Morales further testified that he did not receive any legal papers from McDonnell nor was he provided with any mail by anyone at McDonald’s.

Process server Warren Bozarth testified that on the afternoon of June 7, 2005 he left a copy of the summons and complaint for Morales with John McDonnell, the general manager of the subject McDonald’s, after engaging him in conversation at the counter where he confirmed that Morales did work there, but was not on duty at the time, and obtained McDonnell’s consent to leave the legal papers for Morales with him. Bozarth also testified that McDonnell said he would give the papers to Morales. On cross-examination Bozarth stated he did not choose to come back at a later time to serve Morales and that he did not inquire as to when Morales would be on duty. Bozarth mailed a copy of the summons and complaint to George Morales at McDonald’s, 234 West 42nd Street, New York, New York 10036.

Plaintiffs presented no evidence whether any attempts were made to secure George Morales’ residential address, or what McDonald’s business practices or procedures were, if any, regarding redelivery of papers personally left for or mailed to nonemployees at McDonald’s.

Morales asserts that One Police Plaza is his actual place of business and that McDonnell was not his “business associate” [187]*187as stated in Bozarth’s affidavit of service. He did not provide his residential address.

CPLR 308 provides, in pertinent part:

“Personal service upon a natural person shall be made by any of the following methods:. . .
“2. by delivering the summons ... to a person of suitable age and discretion at the actual place of business, ... of the person to be served and by . . . mailing the summons ... at his . . . last known residence or . . .at his . . . actual place of business
“6. For purposes of this section, ‘actual place of business’ shall include any location that the defendant, through regular solicitation or advertisement, has held out as its place of business.”

This court finds that John McDonnell, the general manager of the McDonald’s restaurant where Morales reported for work and where delivery of the summons and complaint was made to him on behalf of George Morales, is a person of suitable age and discretion. (See Costine v St. Vincent’s Hosp. & Med. Ctr. of N.Y., 173 AD2d 422 [1st Dept 1991].) However, this court holds that the McDonald’s restaurant is not George Morales’ actual place of business, and therefore service thereat and mailing thereto was not proper to afford this court personal jurisdiction over him. Although a person may have more than one actual place of business for purposes of substituted service (see Sartor v Utica Taxi Ctr., Inc., 260 F Supp 2d 670, 678 [SD NY 2003]), the fact that Morales was also employed by the New York City Police Department is irrelevant for present purposes.

“No definitive test has emerged as to the meaning of ‘actual place of business.’ ” (See Alexander, Practice Commentaries, McKinney’s Cons Laws of NY, Book 7B, CPLR C308:3 [b], at 22.) “The fact that a defendant does business in a given place does not necessarily make it his place of business. There must be an identification of the defendant’s business with the place, such as comes with employment or proprietorship” (Glasser v Keller, 149 Misc 2d 875, 877 [Sup Ct, Queens County 1091]). It is undisputed that Morales has no proprietary interest in McDonald’s. Furthermore, he does not appear to have been subject to supervision by McDonald’s employees. Nor did he, “through regular solicitation or advertisement” (CPLR 308 [6]), hold out McDonald’s as his place of business.

Substituted service to a person of suitable age and discretion at a defendant’s actual place of business “presume[s] that the [188]*188business relationship between the deliveree and the defendant will induce the prompt redelivery of the summons to the defendant” (Glasser v Keller,

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16 Misc. 3d 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ascencio-sutphen-v-mcdonalds-corp-nysupct-2007.