Lu v. SAP America, Incorporated

CourtDistrict Court, E.D. Michigan
DecidedMarch 3, 2022
Docket2:21-cv-10796
StatusUnknown

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

Bluebook
Lu v. SAP America, Incorporated, (E.D. Mich. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

Xuan Lu,

Plaintiff, Civil Case No. 21-10796 v.

SAP America, et al., Sean F. Cox United States District Court Judge Defendants. ______________________________/

OPINION AND ORDER GRANTING SAP AMERICA’S MOTION TO SET ASIDE DEFAULT AND GRANTING SAP AMERICA’S MOTION TO DISMISS

This is an employment discrimination case. Plaintiff, Xuan Lu (“Lu”) alleges that Defendants, including SAP America, Inc. (“SAP America”), discriminated against her based upon her disability and national origin. The matters currently before the Court are SAP America’s Motion to Set Aside Default (ECF No. 12) and SAP America’s Motion to Dismiss (ECF No. 18). The parties have briefed the issues and the Court concludes that oral argument is not necessary. Thus, the Court orders that the motion will be decided without a hearing. See E.D. Mich. LR 7.1(f). This Opinion and Order is divided into two sections for each of the motions. For the reasons explained below, the Court: (1) GRANTS SAP America’s motion to set aside default (ECF No. 12) and DISMISSES the clerk’s entry of default against SAP America (ECF No. 8) because Lu failed to properly serve SAP America; and (2) GRANTS SAP America’s motion to dismiss (ECF No. 18) and DISMISSES the entirety of this action on the basis of forum non conveniens. 1

I. MOTION TO SET ASIDE DEFAULT (ECF No. 12) BACKGROUND On April 9, 2021, Lu initiated this action by filing her Complaint with this Court. (ECF No. 1). Defendants in this case are SAP America, SAP China, and SAP S.E. The only Defendant involved in the current motions is SAP America.

On July 6, 2021, Lu sent a copy of the Summons and Complaint via overnight mail to the registered agent of SAP America, the Corporation Company, with a signature required. (ECF No. 6, at PageID 28). The tracking information provided to Lu by the United States Postal Service (“USPS”) shows that it was delivered on July 7, 2021. (ECF No. 6-3, at PageID 35). On July 6, 2021, Lu also sent copies of the Summons and Complaint to the Corporation Company via certified mail, return receipt requested. (ECF No. 6-4). The USPS tracking information shows that it was delivered on July 9, 2021. (ECF No. 6-5). On July 7, 2021, the Corporation Company forwarded the Summons and Complaint via email to SAP America. (ECF No 12-2, at PageID 77). On July 8, 2021, the paralegal at SAP

America who received the email from the Corporation Company forwarded it to SAP America’s in-house counsel, Isabelle Laprade-Finberg (“Laprade-Finberg”). (ECF No. 12-2, at PageID 77). Laprade-Finberg testified that she “inadvertently overlooked this email as I was traveling internationally the same day (on my first scheduled vacation since COVID) and was also attending to ongoing COVID-related work responsibilities while traveling.” (ECF No. 12-2, at PageID 77). On July 8, 2021, the Court ordered Lu to show cause why the case should not be dismissed for failure to prosecute, pursuant to E.D. Mich. LR 41.2. (ECF No. 5). In response, Lu provided tracking information regarding the mailing of the Summons and Complaint to SAP America and

requested an Order extending the Summons on SAP China and SAP S.E. for one year to allow for service under the protocols of the Hague Convention. (ECF No. 6). On August 17, 2021, Lu filed a Request for Clerk’s Entry of Default as to SAP America. (ECF No. 7). On August 19, 2021, the Court entered Clerk’s Entry of Default against SAP America. (ECF No. 8).

On August 23, 2021, the Court issued an Order Extending Summons for One Year as to SAP China and SAP S.E. (ECF No. 9). On December 21, 2021, Lu mailed the Clerk’s Entry of Default to the Corporation Company, via U.S. mail. (ECF No. 10). On December 28, 2021, Laprade-Finberg received the Clerk’s Entry of Default. (ECF No. 12-2, at PageID 78). SAP America is currently represented by Brian L. Johnsrud (“Johnsrud”), a partner at the law firm Curley, Hurtgen & Johnsrud LLP. (ECF No. 12-3). Johnsrud testified that Lu has known for several months that SAP America was represented by Curley, Hurtgen & Johnsrud LLP in connection with the Charge of Discrimination Lu filed with the Equal Employment Opportunity

Commission (“EEOC”) in this matter. (ECF No. 12-8, at PageID 108). On December 30, 2021, Johnsrud emailed Lu’s counsel, Bryan Monaghan (“Monaghan”) to explain the situation and requested that SAP America stipulate to vacating the Clerk’s Entry of Default and provide SAP America with 45 days to respond to the Complaint. (ECF No. 12-3, at PageID 109). On January 3, 2022, Monaghan responded that it would not stipulate to set aside the default. (ECF No. 12-3, at PageID 168).

SAP America retained local counsel, Brian Schwartz of Miller, Canfield, Paddock and Stone, P.L.C. (“Schwartz”) to represent it in this matter. On January 5, 2022, Schwartz filed the present motion, SAP America’s Motion to Set Aside Default (ECF No. 12). ANALYSIS Under Federal Rule of Civil Procedure 55(b), a judgment by default may be entered against

a defendant who has failed to plead or otherwise defend against an action. In order to obtain judgment by default, the proponent must first request the clerk’s entry of default pursuant to Rule 55(a). Etherly v. Rehabitat Systems of Michigan, No. 13-11360, 2013 WL 3946079 at *3 (E.D. Mich. July 31, 2013). Lu made such a request from the Clerk’s Office because SAP America had failed to plead or otherwise defend against this action (ECF No. 7), and the Court entered the Clerk’s Entry of Default against SAP America (ECF No. 8). However, “because a party has no duty to plead until properly served, sufficient service of process is a prerequisite to entry of default.” Id. at *3. Therefore, the Court must determine if SAP America was properly served. Here, SAP America argues that Lu failed to properly serve it by only mailing the Summons

and Complaint. (ECF No. 12, at PageID 61). Federal Rule of Civil Procedure 4(h) requires that corporations in a judicial district of the United States must be served: (A) in the manner prescribed by Rule 4(e)(1) for serving an individual; or

(B) by delivering a copy of the summons and the complaint to an officer, managing or general agent, or any other agent authorized by appointment or by law to receive service of process and – if the agent is one authorized by statute and the statute so requires – by also mailing a copy of each to the defendant[.]

FED. R. CIV. P. 4(h)(1) (emphasis added). As there is no evidence that Lu personally delivered a copy of the Summons and Complaint, Rule 4(h)((1)(B) does not help her. Thus, the Court must 4

look to Rule 4(e)(1). Under Rule 4(e)(1), an individual may be served in a judicial district of the United States by: (1) following state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made; or

FED. R. CIV. P. 4(e)(1) (emphasis added). Here, the relevant state law under Rule 4(e)(1) is the Michigan Court Rules. Under Michigan Court Rule 2.105(d) a private corporation – such as SAP America – must be served by one of the following methods: (1) serving a summons and a copy of the complaint on an officer or the resident agent;

(2) serving a summons and a copy of the complaint on a director, trustee, or person in charge of an office or business establishment of the corporation and sending a summons and a copy of the complaint by registered mail, addressed to the principal office of the corporation[.] . . . MCR 2.105(D)(1)-(2) (emphasis added).

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Lu v. SAP America, Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lu-v-sap-america-incorporated-mied-2022.