Jian Zhang v. Baidu.com Inc.

293 F.R.D. 508, 85 Fed. R. Serv. 3d 1140, 2013 WL 2458834, 2013 U.S. Dist. LEXIS 80772
CourtDistrict Court, S.D. New York
DecidedJune 7, 2013
DocketNo. 11 Civ. 3388 (JMF)
StatusPublished
Cited by45 cases

This text of 293 F.R.D. 508 (Jian Zhang v. Baidu.com Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jian Zhang v. Baidu.com Inc., 293 F.R.D. 508, 85 Fed. R. Serv. 3d 1140, 2013 WL 2458834, 2013 U.S. Dist. LEXIS 80772 (S.D.N.Y. 2013).

Opinion

OPINION AND ORDER

JESSE M. FURMAN, District Judge:

By Opinion and Order dated March 25, 2013 (the “March Opinion”), this Court dismissed Plaintiffs’ complaint for failure to serve Defendants Baidu.com Inc. (“Baidu”) and the People’s Republic of China in light of the fact that China had declined to effect service pursuant to Article 13 of the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters, Nov. 15, 1965, 20 U.S.T. 361 (the “Hague Convention” or “Convention”), on the ground that such service would infringe its sovereignty or security. See Zhang v. Baidu.com Inc., 932 F.Supp.2d 561, No. 11 Civ. 3388, 2013 WL 1195257 (S.D.N.Y. Mar. 25, 2013). The Court stayed dismissal, however, to allow Plaintiffs to file a motion for alternative service on Baidu pursuant to Rule 4(f)(3) of the Federal Rules of Civil Procedure. On April 25, 2013, Plaintiffs filed that motion, which raises the question— apparently never analyzed in detail before— whether alternative service is an option where, as here, a foreign country declined to effect service under Article 13 of the Hague Convention.

For the reasons stated below, the Court concludes that it is and that, in the circumstances presented here, service on Baidu’s domestic counsel is an appropriate form of alternative service. Accordingly, the Court grants Plaintiffs’ motion and gives Plaintiffs thirty days to serve Baidu’s counsel in this action. In addition, the Court grants Plaintiffs 120 days to serve China pursuant to Rule 4(j)(l) and Title 28, United States Code, Section 1608(a).

BACKGROUND

Although familiarity with this Court’s prior opinion is presumed, the following facts are relevant to the present motion. Plaintiffs, self-described “promoters of democracy in China through their writings, publications and reporting of pro-democracy events,” allege that China and Baidu, a Chinese Internet search engine service, have conspired to prevent their “pro-democracy political speech” from appearing in Baidu’s search engine results. (Compl. ¶¶ 7-8, 10-12, 14). Plaintiffs originally tried to serve China and Baidu through the Chinese Ministry of Justice, China’s designated Central Authority under the Hague Convention. The Chinese Ministry of Justice declined to effect service, however, certifying under Article 13 of the Convention that “execution of the request would infringe the sovereignty or security of the People’s Republic of China.” (Docket Nos. 2-3). Thereafter, Plaintiffs attempted to serve Defendants by sending the Summons and Complaint via Federal Express. (Preziosi Affirmation ¶¶ 30-31, July 23, 2012, Docket No. 9). China refused to accept the package sent to its Ministry of Justice because the Ministry requires authorization in advance for deliveries, and Baidu refused to accept delivery because the package was not addressed to a specific person. (Id. ¶¶ 32-34). A second package containing the Summons and Complaint was successfully delivered to Baidu’s Beijing offices, where a Baidu employee signed for them. (Id. ¶¶ 35-36).

[511]*511In the March Opinion, this Court held that Defendants had not been properly served. See Zhang, 932 F.Supp.2d at 565-66. Nevertheless, noting “the ‘strong preference’ for deciding cases on the merits,” id. at 568 (quoting New York v. Green, 420 F.3d 99,104 (2d Cir.2005)), the Court granted Plaintiffs leave to file a motion for alternative service pursuant to Rule 4(f)(3), addressing the question of whether a court may authorize an alternative means of service when, as in this ease, the receiving nation has declined to effect service pursuant to Article 13 of the Hague Convention, see id. The Court noted that the answer to that question was unclear, citing two cases suggesting that if a country has refused to complete service pursuant to Article 13, service under Rule 4(f)(3) would be impermissible, see id. at 567-68 (citing Gurung v. Malhotra, 279 F.R.D. 215, 218 (S.D.N.Y.2011), and In re S. African Apartheid Litig., 643 F.Supp.2d 423, 437-38 (S.D.N.Y.2009)), and two cases suggesting the opposite, see id. (citing Manoharan v. Rajapaksa, No. 11-235(CKK) (D.D.C.), noted in Devi v. Rajapaska, No. 11 Civ. 6634(NRB), 2012 WL 309605, at *1 (S.D.N.Y. Jan. 31, 2012), and Bleier v. Bundesrepublik Deutschland, No. 08 C 6254, 2011 WL 4626164, at *6 (N.D.Ill. Sept. 30, 2011)). The Court also directed Plaintiffs to show cause in writing why the case should not be dismissed as to China, on the ground that China had not been served in accordance with Rule 4(j)(1) of the Federal Rules of Civil Procedure and Title 28, United States Code, Section 1608. See id. at 568-69.

DISCUSSION

A. Service on Baidu

Service on Baidu, as a foreign corporation, is governed by Rule 4(f). See Fed. R.Civ.P. 4(h) (stating that a foreign corporation must be served “in a judicial district of the United States ... or at a place not within any judicial district of the United States, in any manner prescribed by Rule 4(f) for serving an individual, except personal delivery”). Rule 4(f)(1) permits service outside the United States “by any internationally agreed means of service that is reasonably calculated to give notice, such as those authorized by the Hague Convention.” Subject to enumerated restrictions, Rule 4(f)(2) permits alternative service “if there is no internationally agreed means, or if an international agreement allows but does not specify other means, by a method that is reasonably calculated to give notice.” Finally, Rule 4(f)(3) provides that service on a foreign litigant can be effected “by other means not prohibited by international agreement, as the court orders.” In this case, Rule 4(f)(3) is the only provision that remains open to Plaintiffs, as their efforts to serve Baidu pursuant to Rule 4(f)(1) failed because China invoked its rights under Article 13 of the Convention and Rule 4(f)(2) is inapplicable. In general, “[t]he decision whether to allow alternative methods of serving process under Rule 4(f)(3) is committed to the sound discretion of the district court.” In re GLG Life Tech Corp. Sec. Litig., 287 F.R.D. 262, 265 (S.D.N.Y.2012) (quoting Madu, Edozie & Madu, P.C. v. Socketworks Ltd. Nigeria, 265 F.R.D. 106, 115 (S.D.N.Y.2010)) (internal quotation marks omitted). The question here is whether the Court has that discretion where a plaintiffs inability to serve the defendant pursuant to Rule 4(f)(1) arises from the receiving country’s invocation of Article 13.

The Court concludes that it does. Courts have long held that there is “no hierarchy among the subsections in Rule 4(f),” Advanced Aerofoil Techs., AG v. Todaro, No. 11 Civ. 9505(ALC) (DCF), 2012 WL 299959, at *1 (S.D.N.Y. Jan. 31, 2012), and that Rule 4(f)(3) “stands independently, on equal footing” with Rule 4(f)(1), Rio Props., Inc. v. Rio Int'l Interlink, 284 F.3d 1007, 1014-15 (9th Cir.2002). As the Ninth Circuit reasoned in Rio Properties:

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293 F.R.D. 508, 85 Fed. R. Serv. 3d 1140, 2013 WL 2458834, 2013 U.S. Dist. LEXIS 80772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jian-zhang-v-baiducom-inc-nysd-2013.