De Gazelle Group, Inc. v. Tamaz Trading Establishment

308 F.R.D. 688, 92 Fed. R. Serv. 3d 34, 2015 U.S. Dist. LEXIS 89226, 2015 WL 4197306
CourtDistrict Court, M.D. Florida
DecidedJuly 9, 2015
DocketCase No. 6:13-cv-1430-Orl-31TBS
StatusPublished

This text of 308 F.R.D. 688 (De Gazelle Group, Inc. v. Tamaz Trading Establishment) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Gazelle Group, Inc. v. Tamaz Trading Establishment, 308 F.R.D. 688, 92 Fed. R. Serv. 3d 34, 2015 U.S. Dist. LEXIS 89226, 2015 WL 4197306 (M.D. Fla. 2015).

Opinion

[690]*690Order

GREGORY A. PRESNELL, District Judge.

In September 2013, DeGazelle Group, Inc. (“DeGazelle”), a Florida corporation, filed suit against Tamaz Trading Establishment (“Tamaz”), a Saudi Arabian company, alleging breach of contract (Doc. 1). After initially denying Plaintiffs Motion for Entry of Default (Doc. 10), Magistrate Judge Smith entered an Order on March 19, 2014 (Doe. 15), granting Plaintiffs Motion to Serve Defendant with process pursuant to Fed. R.Civ.P. 4(f)(3) (Doc. 13). On March 20, 2014, Plaintiff filed an Amended Motion for Entry of Clerk’s Default (Doe. 16). The Clerk entered default on March 25, 2014 (Doe. 17).

On March 26, 2014, Plaintiff filed a Motion for Default Judgment against Tamaz. On April 8, 2014, Magistrate Judge Smith issued a Report and Recommendation (Doc. 19) recommending that Plaintiffs Motion be granted and that judgment be entered against Tamaz in the amount of $2,500,000.00. On April 25, 2014, this Court confirmed and adopted the Report and Recommendation (Doc. 20). A default judgment was entered on April 28, 2014, and the case was closed (Doc. 21).

Ten months later, in March 2015, counsel appeared for Tamaz (Doc. 22) and filed various motions seeking relief from the judgment pursuant to Fed.R.Civ.P. 60(b) (Doc. 28 and 29). Plaintiff filed memoranda in opposition to these motions (Doc. 34 and 35). Judge Smith conducted a two-hour hearing on May 5, 2015 and thereafter entered a Report and Recommendation (Doc. 43), recommending that Defendant’s Motions be denied.1 The matter is now before this Court upon the Defendant’s Objection to the Report and Recommendation (Doc. 48) and Plaintiffs response thereto (Doc. 49).

The gravamen of Defendant’s appeal is that Judge Smith erred in denying relief under Fed.R.Civ.P. 60(b), because service of process on Tamaz was insufficient under both U.S. and Saudi Arabian law.

In his Report and Recommendation, Judge Smith thoroughly considered and analyzed the evidence presented, and found that Defendant was served with process and had actual notice of the Complaint filed against it. He concluded that service of process on Ta-maz was in accordance with Fed.R.Civ.P. 4(f)(3) and was not prohibited by Saudi Arabian law. He also analyzed the portions of Rule 60(b) relied upon by Defendant and found that granting the motions would be prejudicial to Plaintiff, and that Tamaz had not shown good cause for failing to respond to the Complaint.

In consideration of Defendant’s appeal, this Court has reviewed the entire record of this case de novo and concludes that Judge Smith’s factual findings and conclusions of law are correct. It is, therefore

ORDERED that Defendant’s objection to the Report and Recommendation (Doc. 48) is OVERRULED. The Report and Recommendation (Doc. 43) is CONFIRMED and ADOPTED as part of this Order. The Defendant’s Motions (Doc. 28 and 29) are DENIED.

REPORT AND RECOMMENDATIONS

THOMAS B. SMITH, United States Magistrate Judge.

On April 28, 2014, judgment was entered for Plaintiff De Gazelle Group, Inc., and against Defendant Tamaz Trading Establishment (Doc. 21). The judgment was not appealed. The case is now back before the Court on the following motions and request:

(1) Defendant’s Motion for Relief from Judgment Including Motion to Vacate Default Final Judgment and Motion to Vacate Judicial Default for Lack of Valid Service of Process, Insufficient Service of Process, and for Void Service of Process and Motion to Quash Service of Process Based Upon Fed. R. Civ. Pro., Rule 60(b)(1), (4) and (6), Rule 55(c) and Rule 4(f)(2) and (3) and for Other Relief Requested (Doc. 25)1;
[691]*691(2) Defendant’s Amended Motion for Stay Enforcement of Judgment (Doc. 28);
(8) Defendant’s Amended Motion for Relief from Judgment Including Motion to Vacate Default Final Judgment and Motion to Vacate Judicial Default for Lack of Valid Service of Process, Insufficient Service of Process, and for Void Service of Process and Motion to Quash Service of Process Based upon Fed. R. Civ. Pro., Rule 60(b)(1), (4) and (6), Rule 55(c) and Rule 4(f)(2) and (3) and for Other Relief Requested (Doc. 29); and (4) Defendant’s Notice of Filing/Notice to Take Judicial Notice of Royal Decree M/21, 20 Jumada 1, 1421 [19 August 2000] Containing Legal Procedures for the County of Saudi Arabia (Doc. 33).

On May 5, 2015 I held a hearing on Defendant’s motions and now, respectfully recommend that Defendant’s request for judicial notice be granted, and that all motions be denied.

I. Background

Plaintiff employed FedEx International Priority to effect service of process of this breach of contract claim on Defendant. This was accomplished by sending copies of the summons and complaint via FedEx to Defendant’s registered agent, Faisal Mubarak Al-thewadi in Al Dammamm, Saudi Arabia (Doc. 13 at 2). As proof of service, Plaintiff filed a FedEx delivery record showing that the summons and complaint were delivered to “Receptionist/Front Desk,” signed for by “Faisal,” at P.O. Box 10985, Dammamm, Saudi Arabia, at 13:40, on Saturday, September 21, 2013 (Doc. 8 at 2). Defendant did not file any papers in response to the complaint and Plaintiff motioned the Court for the entry of a default (Doe. 9). In its motion, Plaintiff alleged that Defendant was served in accordance with Rule 4(h)(2), which provides that a corporation may be served outside the territorial boundaries of the United States “in any manner prescribed by Rule 4(f) for serving an individual, except personal delivery under (f)(2)(C)(i).” Rule 4(f) provides multi-pie methods for service “that [are] reasonably calculated to give notice.” Fed.R.Civ.P. 4(f)(2).

The Court denied the motion for entry of default (Doc. 10). In its Order, the Court explained that Plaintiff had failed to identify the paragraph(s) of Rule 4(f) under which it claimed to have served Defendant (Id.). The Court also expressed concern about the manner of service Plaintiff employed. It noted that Plaintiff had not provided any authority for service of process by FedEx; the summons was delivered to an unidentified “Receptionist/Front Desk” at a post office box; and service occurred on a Saturday, which falls on the Saudi Arabian weekend (Id.).

Plaintiff then filed a motion to serve Defendant pursuant to Fed.R.Civ.P. 4(f)(3) (Doc. 13). The rule provides that service can be made “by other means not prohibited by international agreement, as the court orders.” Fed.R.Civ.P. 4(f)(3). Plaintiff alleged in its motion, and Defendant agreed at the hearing, that there are no international agreements providing for the service of process in Saudi Arabi.

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308 F.R.D. 688, 92 Fed. R. Serv. 3d 34, 2015 U.S. Dist. LEXIS 89226, 2015 WL 4197306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-gazelle-group-inc-v-tamaz-trading-establishment-flmd-2015.