Lamb v. Volkswagenwerk Aktiengesellschaft

104 F.R.D. 95, 1 Fed. R. Serv. 3d 268, 1985 U.S. Dist. LEXIS 23635
CourtDistrict Court, S.D. Florida
DecidedJanuary 7, 1985
DocketNo. 82-1692-CIV-HASTINGS
StatusPublished
Cited by13 cases

This text of 104 F.R.D. 95 (Lamb v. Volkswagenwerk Aktiengesellschaft) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamb v. Volkswagenwerk Aktiengesellschaft, 104 F.R.D. 95, 1 Fed. R. Serv. 3d 268, 1985 U.S. Dist. LEXIS 23635 (S.D. Fla. 1985).

Opinion

ORDER ON DEFENDANT’S MOTION FOR RECONSIDERATION

HASTINGS, District Judge.

The issue of the Court’s jurisdiction over one of the Defendants again comes before the Court in the Motion of Defendant, VOLKSWAGENWERK AKTIENGESELLSCHAFT (VWAG), for Reconsideration of Court’s Order of October 23, 1984, Denying VOLKSWAGENWERK AKTIENGESELLSCHAFT’s Motion to Dismiss, to Quash Process, and to Quash Service of Process (Special Appearance). Both parties have fully briefed this issue.

Plaintiffs first challenge Defendants’ right to ask the Court to reconsider its October 23, 1984 Order on Pending Motions, as Rule 60(b) of the Federal Rules of Civil Procedure does not authorize a litigant to ask for reconsideration of a legal issue. Whether or not the language of Rule 60(b) specifically permits reconsideration of a legal issue is debatable. It cannot, however, be disputed that where a timely request to reconsider a prior ruling is made and based on an erroneous applica[96]*96tion of the applicable law, reconsideration of such previous ruling is properly within the Court’s broad discretion. Defendant VWAG has filed a timely Motion for Reconsideration claiming that this Court has made a mistake in applying the appropriate law to the question of whether service of process on VWAG was sufficient and valid. The Court shall exercise its discretion and grant VWAG’s request to have the Court reconsider its October 23, 1984 Order. Unfortunately for Defendant, however, such reconsideration shall change nothing. For the reasons which follow, the Court shall ratify and affirm its prior findings that process and service of process were sufficient so as to ensure the Court’s jurisdiction over VWAG.

The pertinent provision of the Court’s October 23, 1984 Order reads as follows:

Defendant VOLKSWAGENWERK AKTIENGESELLSCHAFT’s Motion to Dismiss, to Quash Process, and to Quash Service of Process (Special Appearance) (Docket No. 10) is DENIED. By way of a Supplement to Plaintiffs’ Memorandum of Law in Opposition to Defendant VOLKSWAGENWERK AKTIENGE-SELLSCHAFT’s Motion to Dismiss, to Quash Process, and to Quash Service of Process, Plaintiffs presented voluminous documents bearing on the degree of control that Defendant VOLKSWAGENWERK AKTIENGESELLSCHAFT (VWAG) exercises over Co-Defendant VOLKSWAGEN OF AMERICA, INC. (VWOA). This Court finds that the control exercised by VWAG over VWOA is a sufficient basis for a finding either that VWAG is indeed transacting business in the State of Florida or alternatively that its subsidiary, VWOA, is in reality acting as agent for VWAG’s separate business within the State. Additionally, it is not disputed and the Court finds that VWOA provided VWAG with actual notice of this litigation. Neither is it disputed that C.T. Systems, the company served with VWAG’s copy of the Complaint and Summons, is the appointed agent of VWOA, employed to accept service of process locally. Since Plaintiffs properly effectuated process and service of process on VWAG through C.T. Systems and VWOA, the Court’s personal jurisdiction over the principal, VWAG, is proper.

Defendant VWAG makes two substantive assertions in its Memorandum of Law in support of its Motion for Reconsideration of the foregoing Order: (1) The Order fails to recognize the weight and authority of the provisions of the “Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters” as said Convention relates to the Plaintiffs’ service of process on VWAG; and (2) VWAG has not appointed any process agent, and specifically not appointed VWOA, as an agent for service of process in such a civil action, and there is otherwise insufficient evidence to support a finding that VWOA is acting as the agent of VWAG for purposes of effecting valid service of process on VWAG.

THE HAGUE CONVENTION

The Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, 20 UST 361, T.I.A.S. No. 6638, 658 U.N.T.S. 163, (hereinafter The Hague Convention), is a treaty which was agreed to and signed by various countries at the Hague, Netherlands, in 1965. The treaty became effective in the United States on February 10, 1969, and in the Federal Republic of Germany (West Germany) on June 26, 1979. VWAG is a West German corporation.

The introduction to The Hague Convention proclaims that its purposes are “to ensure that judicial and extrajudicial documents TO BE SERVED ABROAD shall be brought to the notice of the addressee in sufficient time,” and “to improve the organization of mutual judicial assistance FOR THAT PURPOSE by simplifying and expediting the procedure.” [Emphasis supplied.] Article 1 provides that The Hague Convention “shall apply in all cases, in civil or commercial matters, where there is occasion TO TRANSMIT A JUDICIAL OR EXTRAJUDICIAL DOCUMENT FOR SER[97]*97VICE ABROAD.” [Emphasis supplied.] Pursuant to the terms of Article 3, service of process on a foreign corporation abroad is to be accomplished by serving a Central Authority which is designated by the foreign state. Article 10 of The Hague Convention does allow for alternative methods of service where it provides that the treaty shall not interfere with the freedom of judicial officers, officials, or other competent persons of the State of origin to effect service of judicial documents by mail or by direct service through foreign officials or competent persons, provided that the State of destination does not object to these alternative methods of service. In accordance with Article 21, the Government of the Federal Republic of Germany has objected to the alternative methods of transmission specified in Article 10, and therefore, these alternative methods may not be used to accomplish service of process in the objecting country.

Defendant VWAG argues that since West Germany has objected to the alternative methods in Article 10, the only way to serve a German corporation is to serve the designated Central Authority in that country, and that since process was not submitted to such designated Central Authority in compliance with the provisions of The Hague Convention, the service of process on VWAG in the instant case must be quashed. Plaintiffs do not argue that the provisions of The Hague Convention were complied with in this case; they simply contend that the' Convention’s provisions are not applicable in this case, since the Defendant VWOA is the alter ego, and therefore the agent, of Defendant VWAG in Florida for the purpose of service of process. Having carefully reviewed the language in the various provisions of The Hague Convention, this Court remains entirely persuaded by the arguments of Plaintiffs.

By its terms, The Hague Convention is applicable only to attempts to serve process in foreign countries. Both the introduction and Article 1 refer to the transmission of judicial documents, in civil matters, for service ABROAD. The purpose of The Hague Convention is to simplify the procedure for serving judicial documents abroad to ensure that the party to be served in the foreign country will receive notice in timely fashion. There is nowhere among the provisions of The Hague Convention any indication that it is to control attempts to serve process on foreign corporations or agents of foreign corporations within the State of origin. To ask a Court to find such an indication within the meaning of the Convention’s language is to ask that a new treaty be fashioned by the Court. A Court may interpret but should not write the law.

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Cite This Page — Counsel Stack

Bluebook (online)
104 F.R.D. 95, 1 Fed. R. Serv. 3d 268, 1985 U.S. Dist. LEXIS 23635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamb-v-volkswagenwerk-aktiengesellschaft-flsd-1985.