Leo v. General Electric Co.

111 F.R.D. 407, 1986 U.S. Dist. LEXIS 22642
CourtDistrict Court, E.D. New York
DecidedJuly 17, 1986
DocketNo. 86 CV 0061
StatusPublished
Cited by13 cases

This text of 111 F.R.D. 407 (Leo v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leo v. General Electric Co., 111 F.R.D. 407, 1986 U.S. Dist. LEXIS 22642 (E.D.N.Y. 1986).

Opinion

REPORT AND RECOMMENDATION OF UNITED STATES MAGISTRATE

SHIRA A. SCHEINDLIN, United States Magistrate.

Plaintiffs brought an action in the Supreme Court of New York, Suffolk County, claiming economic loss due to defendant General Electric’s (“GE”) discharge of pollutants into the Hudson River. Plaintiffs, commercial fishermen and charter boat operators, allege that such toxic wastes contaminated striped bass and resulted in the Spring, 1985 sales ban of the fish. Plaintiffs seek ten million dollars in compensatory and punitive damages as well as injuncfive relief. On October 29, 1985, plaintiffs served GE with the summons and complaint in the state action.

On January 7, 1986, GE removed the action to the Eastern District of New York pursuant to 28 U.S.C. § 1441(b) (1982).1 On January 10, 1986, plaintiffs served a motion to remand the action to state court pursuant to 28 U.S.C. § 1447(c) (1982)2, because GE’s removal petition had not been filed within the thirty-day period prescribed by 28 U.S.C. § 1446(b) (1982).3 Plaintiffs contend that the statutory period commenced on October 29, 1985, the date of service of the summons and complaint. Defendant argues that the statutory period did not commence on that date because GE was not properly served. GE concedes that if service were proper, the thirty day limitations period expired prior to removal.

The Honorable Joseph M. McLaughlin referred the case to me to determine whether service was proper. On May 2, 1986 a hearing was held before me on this issue.

I. SUMMARY OF THE TESTIMONY

A. Plaintiffs Testimony

Process was served on GE by Leonard Witt (“Witt”), a licensed process server with twenty years experience. Affidavit of Leonard Witt, January 24, 1986 (“Witt Affidavit”). II1. In his affidavit, Witt stated that he was fully familiar with New York’s rules regarding service of process on both individuals and corporations. Id. Witt further maintained that his business practice was to accept the representations of process recipients that they were authorized to accept service on behalf of a corporation. Transcript, May 2, 1986 Hearing (“Tr.”), pp. 23-4.

[409]*409On October 28, 1985, Witt was retained by plaintiffs counsel to effect service on GE. Tr. p. 6. The next day, plaintiffs counsel gave him a summons and complaint and told him to serve them on GE at its Melville, Long Island location. Tr. p. 18. Witt testified that he wrote the address of the Melville branch on the back of an envelope. Plaintiffs Exhibit 2. According to Witt, plaintiffs counsel also provided him with several other GE addresses where he might attempt service if unsuccessful at Melville.4 Tr. p. 18. Witt testified that he made no independent investigation regarding the proper location within New York for serving GE, nor did he discover who GE had authorized to accept service on its behalf.

Upon arriving at the Melville site, Witt followed a sign to the service and parts department. Defendant’s Exhibit C—GE Parts & Service Roadsign. This department is a consumer facility which offers machine parts to the public and accepts televisions for repair. Tr. p. 55. Witt notified the man behind the counter that he had legal papers to serve and inquired as to who was authorized to accept service. Witt Affidavit 112. The employee directed him to the building’s front entrance where he should dial extension 204 on the wall-phone and ask for “Bob” “Maloon” or “Mollo.” Tr. p. 8. According to the employee, this person would then tell Witt who was authorized to accept service. Tr. p. 28.5

Although Witt could not recall the employee’s name, he did note a physical description of the man on the same envelope he had used for the Melville address. Plaintiff’s Exhibit 2. The envelope also reflected the telephone number and phonetic spelling of “Maloon.” Id.

Witt then proceeded to the lobby of a different part of the GE facility. Tr. p. 29. This lobby is separated from the building interior by a wall with locked glass doors which lead inside. Defendant’s Exhibit G—photograph of lobby. The lobby is not attended by a receptionist, but a wallphone is available for visitors to contact GE employees. Tr. p. 64, Witt Affidavit U 2. This wallphone is positioned above a large desk, adjacent to the solid lobby wall. Defendant’s Exhibit J—photograph of GE lobby and wallphone. On the desk was a phone directory on which the names Peggy Boone and Bob Malool were referenced to extension 204. Tr. p. 59-60.

Upon entering the lobby Witt dialed extension 204 which was answered by a female. Tr. pp. 8, 16. Witt testified that he asked for “Mr. Bob Maloon” or “Mallo” and disclosed that he had legal papers to serve on GE. Tr. p. 8. The woman responded that Mr. Malool was unavailable, but instructed Witt to wait in the lobby. Id. Witt testified that at 12:10 p.m. the woman came out to the lobby and identified herself as Mr. Malool’s secretary. Tr. p. 9-10. According to Witt, he reiterated that he had legal papers to serve on GE and the woman answered that she would accept them. He then asked her if she was authorized to do so and she answered in the affirmative. Id. Witt handed her the legal papers, asked her name and left. Witt Affidavit 113. He then wrote her name and physical description on the envelope he had used earlier. Plaintiff’s Exhibit 2. That same day, Witt prepared an affidavit of service. Plaintiff’s Exhibit 1.

B. Defendant’s Testimony

Process on GE was delivered to Margaret (a/k/a Peggy) Boone (“Boone”) who has been a GE Melville employee for over fifteen years. Affidavit of Margaret Boone, January 17, 1986 (“Boone Affidavit”) 114. Since August 26, 1985 she has worked as a secretary administrator to Robert Malool, Service Manager and Frank Gosik, Training Manager. Boone Affidavit U 1. Boone’s duties include answering tele[410]*410phones, typing and paying bills. Boone Affidavit If 2. Boone testified that she has never accepted legal papers on behalf of GE nor has she been trained to handle service of process. Tr. p. 84. In addition, Boone testified that she was aware that she was not authorized to accept legal papers for GE. Tr. p. 88.

On October 29, 1985, at about 12:15 p.m., Boone claimed she walked past the building lobby while on her way to the cafeteria, and noticed a man, Witt, using the lobby phone. Tr. p. 58. She stated that the man appeared to be randomly dialing different extensions in order to get someone to come down to the lobby to take papers. Boone Affidavit 116.

Boone testified that she walked into the lobby and asked Witt if she could help him. Tr. p. 77. In response, Witt stated he had papers for a GE employee. Id. Boone claimed that Witt then handed her a brown eight-by-eleven envelope, without a name or return address.6 While she looked at the envelope, Witt quickly left the building. Boone Affidavit ¶¶ 6, 8. Boone further declared she never received a telephone call, conversed with, or disclosed her name to Witt.

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Bluebook (online)
111 F.R.D. 407, 1986 U.S. Dist. LEXIS 22642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leo-v-general-electric-co-nyed-1986.