Chalasani v. Paymentwall Incorporated

CourtDistrict Court, D. Arizona
DecidedNovember 30, 2020
Docket2:20-cv-00460
StatusUnknown

This text of Chalasani v. Paymentwall Incorporated (Chalasani v. Paymentwall Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chalasani v. Paymentwall Incorporated, (D. Ariz. 2020).

Opinion

WO 2 3 4

5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA 8 Ceci Chalasani, No. CV-20-00460-PHX-DGC 9 Plaintiff, ORDER 10 v. 11 12 Paymentwall, Inc. et al, 13 Defendants. 14 15 Plaintiff Ceci Chalasani filed this lawsuit on March 3, 2020 against Defendant 16 Onur Gunday and corporations Services Arizona, Inc. and Paymentwall, Inc. (the 17 “Corporate Defendants”). Doc. 1. The Corporate Defendants were served and have 18 appeared in this action. Docs. 7, 20. Gunday claims that he has not been served with 19 process despite the Court’s previous extension of the service deadline, and moves to 20 dismiss the claims against him for insufficient service and lack of personal jurisdiction. 21 Doc. 35. Plaintiff contends that Gunday was served through substitute service on 22 June 29, 2020. If the Court finds that he was not properly served, Plaintiff requests a 23 second extension of the service deadline and an order authorizing service on defense 24 counsel. Doc. 37. The Court finds that Gunday was not validly served through 25 substitute service, but will deny Gunday’s motion to dismiss, grant Plaintiff’s request for 26 another extension, and authorize alternative service on defense counsel.1 27 1 The Court finds that oral argument will not aid the Court’s decision. See Fed. R. Civ. 28 P. 78(b). 1 I. Background. 2 A. Plaintiff’s Initial Service Attempts. 3 Gunday serves as Chief Executive Officer of the Corporate Defendants. Doc. 1 4 ¶ 4. Plaintiff served the summons and verified complaint on the Corporate Defendants 5 on March 11, 2020. Docs. 7, 22. Over the next several weeks, Plaintiff made numerous 6 unsuccessful attempts to serve Gunday. Doc. 37 ¶¶ 3-12. Plaintiff first attempted to 7 serve him through a process server on March 17, 2020 at his last known home address in 8 Las Vegas. Doc. 37 ¶ 3. Plaintiff made three additional attempts to serve Gunday at the 9 Las Vegas address on March 21, 23, and 25. Id. ¶ 4. After these efforts proved fruitless, 10 Plaintiff’s counsel emailed then-counsel for the Corporate Defendants and asked that she 11 accept service on Gunday’s behalf. Id. ¶ 5. Counsel responded that she lacked authority 12 to accept service. Id. 13 On April 21, 2020, Plaintiff’s counsel sent a request for Waiver of Service of 14 Summons to counsel for the Corporate Defendants. Doc. 37 ¶ 7. Plaintiff received no 15 response. Id. Plaintiff then attempted to serve Gunday at his last-known business 16 address in San Francisco. Plaintiff’s process server made unsuccessful attempts on 17 April 23, April 29, May 8, and May 11. Id. ¶ 9. Meanwhile, Gunday clearly knew of 18 this litigation. On May 5, 2020, he signed a consent for counsel for the Corporate 19 Defendants to withdraw and be replaced by new counsel. Id. ¶ 10. 20 On May 29, current counsel for the Corporate Defendants appeared in the case. 21 See Doc. 20. On June 2, one day after the deadline for service on Gunday had passed, 22 Plaintiff’s counsel asked Corporate Defendants’ new counsel to accept service on 23 Gunday’s behalf. Doc. 37 ¶ 12. New counsel refused to do so on the ground that service 24 was untimely, claiming that it was now necessary to dismiss Gunday from the case. 25 Doc. 37-2 at 2. 26 B. Plaintiff’s Request for Extension of Time. 27 On June 12, 2020, Plaintiff filed a Motion for Extension of Time to Serve 28 Complaint and Motion for Alternative Service on Defendant. Doc. 23. The Court 1 denied the motion for alternative service, but extended the deadline to July 17, 2020 and 2 ordered corporate defense counsel to provide Gunday’s home or business address. See 3 Doc. 26. The Court cautioned: 4 If for any reason Defendant fails to provide his home or business address, Plaintiff is permitted to serve the complaint on defense counsel. Defendant 5 has participated in this case, signing previous counsel’s request to 6 withdraw, and is obviously aware of the litigation. Plaintiff has made nine attempts to serve him, and his refusal to provide an address at which he can 7 now be served will confirm his efforts to evade service and will justify 8 alternative service on his counsel. 9 Id. 10 C. Plaintiff’s Subsequent Service Attempts. 11 Gunday’s counsel provided Plaintiff’s attorneys with the Las Vegas and San 12 Francisco addresses at which service had already been attempted. See Doc. 37-3 at 2. 13 Gunday’s counsel further stated that he travelled between the two locations, but that he 14 intended primarily to be at the San Francisco address beginning the week of June 21. Id. 15 Plaintiff’s process server, James With, attempted to serve Gunday at the San 16 Francisco address on June 26 and 27, without success. Doc. 37-4 ¶¶ 4-5. Mr. With 17 made a third attempt on June 29. Id. ¶ 6. According to Mr. With’s declaration, at this 18 point an individual named James Morrison answered the door, “identified himself,” and 19 accepted the materials after being informed they were legal papers for Gunday. Id. ¶¶ 6- 20 7. After leaving the documents with Mr. Morrison, Mr. With placed copies of the 21 documents in a sealed envelope and sent them via first-class mail to the San Francisco 22 address. Id. ¶ 8. 23 On July 7, Mr. With again attempted to personally serve Gunday at the San 24 Francisco address. Gunday was not there. Id. ¶ 10. On July 9, Mr. With called a phone 25 number posted on the door of the San Francisco address. Id. ¶ 11. According to Mr. 26 With’s declaration, Gunday answered the phone, confirmed that he had received the 27 documents from Mr. Morrison the previous week, and expressed his unhappiness that 28 Mr. With had left the documents with “his intern.” Id. ¶¶ 13-14. Gunday then informed 1 Mr. With that he had been in the office for a majority of the previous four months – and 2 in fact was there at the moment – but would be leaving for London that weekend. Id. ¶ 3 16. When Mr. With said he could be at the office within 15 minutes to complete service, 4 Gunday responded that he had a previous appointment and would be unavailable at that 5 time. Id. ¶¶ 17-18. Mr. With attempted to make an appointment for personal service, 6 but Gunday refused, saying that he did not want to be “tied down.” Id. ¶ 19. He told 7 Mr. With that he was usually at the San Francisco address around 11 a.m., and Mr. With 8 said he would return the following day at that time. Id. ¶¶ 20-21. Gunday neither 9 confirmed nor denied the appointment. See id. ¶ 22. 10 Mr. With returned to the San Francisco address the next day, July 10, at 10:45 11 a.m. Id. ¶ 22. He waited outside the business, but did not see a man matching Gunday’s 12 description enter or exit. Id. ¶ 23. At 11:10 a.m., he approached the business and asked 13 for Gunday, but employees informed him that Gunday was not present. Id. ¶ 24. Five 14 minutes later, Mr. With called Gunday’s number. Gunday said he was running errands 15 and did not know when he would be back in the office. Id. ¶¶ 25-26. Mr. With left the 16 San Francisco address and returned at 12:10 p.m. Id. ¶ 28. He called Gunday again, but 17 Gunday did not answer. Id. 18 Gunday claims that (1) the only “James Morrison” working at the San Francisco 19 address works for an unaffiliated company, has no connection to either Gunday or the 20 Corporate Defendants, and thus could not have represented himself as having authority 21 to accept service on Gunday’s behalf; (2) Mr. Morrison could not have answered the 22 door on June 29, as Mr. With claims, because there is neither a call box nor doorbell, and 23 no reception desk at the front to hear someone knocking; (3) neither Gunday nor 24 Paymentwall’s employees ever received the materials that Mr. With purportedly mailed 25 to the San Francisco address after leaving the legal paperwork with Mr. Morrison; and 26 (4) not only did Gunday never tell Mr. With that he had received the legal documents 27 28 1 from his “intern” Mr. Morrison, but the July 9 phone conversation never occurred. 2 Doc.

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Chalasani v. Paymentwall Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chalasani-v-paymentwall-incorporated-azd-2020.