Moore v. Bekins Moving & Storage Co.

135 F.R.D. 60, 1991 U.S. Dist. LEXIS 3136, 1991 WL 46867
CourtDistrict Court, S.D. New York
DecidedMarch 15, 1991
DocketNo. 88 Civ. 5194 (JFK)
StatusPublished
Cited by2 cases

This text of 135 F.R.D. 60 (Moore v. Bekins Moving & Storage Co.) 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
Moore v. Bekins Moving & Storage Co., 135 F.R.D. 60, 1991 U.S. Dist. LEXIS 3136, 1991 WL 46867 (S.D.N.Y. 1991).

Opinion

OPINION AND ORDER

KEENAN, District Judge:

Before the Court is the motion of defendant Bekins Moving & Storage, Inc. (“Be-kins”) for an Order pursuant to Fed.R.Civ.P. 60 vacating the Second Amended Default Judgment (“Second Default”) previously entered against defendant and for an Order pursuant to Fed.R.Civ.P. 62(b) staying enforcement proceedings relating to the Second Default. Plaintiff Ernest Moore (“Moore”), who is proceeding pro se, presently is incarcerated in the Federal Correctional Institute on Terminal Island in California. Defendant moved by order to show cause as to why its requested relief should not be granted, and permitted plaintiff to answer through written reply. Plaintiff responded within the time provided in the order to show cause.

Background

Plaintiff instituted this action in 1988 seeking damages against Bekins for breach of contract. Plaintiff alleges that Bekins is a California corporation with its principal place of business in California, and that he is a resident of the City of New York, State of New York. (Complaint ¶¶ I & II). The complaint therefore asserts that diversity of citizenship exists, and that this Court’s jurisdiction is proper pursuant to 28 U.S.C. § 1332.

Plaintiff’s complaint states that in September 1986, he contracted to store goods with Bekins, and as part of the contract plaintiff indicated to whom the goods could be released. (Complaint ¶ V). Defendant allegedly released plaintiff’s goods to an unauthorized person upon presentation of an allegedly forged authorization, causing plaintiff to lose possession of his property. Plaintiff’s goods now are being held by All City Moving & Storage, Inc. (“All City”), an agent for North American Van Lines. All City allegedly transported plaintiff’s goods, without his knowledge, from California to Washington and has demanded payment of $2,242.94. Plaintiff was advised that his goods would be auctioned in May 1988. Plaintiff seeks compensation for the fees sought by All City and an award of punitive damages in the amount of $1,000,000.00.

Plaintiff filed the complaint in this action and, due to his incarceration in California at that time, requested that the United States Marshal serve the summons and complaint on defendant. Accordingly, the Marshal served the summons and complaint on a dispatcher of Bekins in Novato, California on October 24, 1988. (Sentner Aff. Exh. C). The Court scheduled an initial pre-trial conference in this action on November 8, 1988, and plaintiff was directed to notify defendant of the conference. That conference then was adjourned and rescheduled for December 12, 1988. None of the parties appeared at that conference, and another pre-trial conference was scheduled for February 9, 1989. Again, none of the parties appeared. Plaintiff then submitted to the Court an order to show cause as to why a default judgment should not be entered against defendant, which motion was returnable on April 28, 1989. Defendant did not appear on the return date of the motion.

On May 22, 1989, the Court entered a default judgment against defendant and directed that judgment be entered in favor of plaintiff. The action then was removed [62]*62from the active docket of the Court. Plaintiff then submitted to the Court a motion to amend the default judgment along with an invoice, which indicated that he had been damaged in the amount of $2,242.94 due to defendant’s alleged breach of contract. On July 24, 1989,” then, an amended default judgment was entered against defendant in the amount of $2,242.94. In April of 1990, plaintiff submitted proof of additional damages incurred, and requested that the default judgment be amended to reflect damages in the amount of $17,129.77. On May 29, 1990, the Court entered a second amended default judgment against defendant in the amount of $17,129.77.

In December 1990, defendant for the first time communicated with the Court, indicating that it had received notice of the default judgments and that on November 19, 1990, a writ of execution had been issued by the United States District Court for the Central District of California and served on Security Pacific National Bank in Los Angeles, California. (Sentner Aff. ¶ 2). Defendant claims that it was not served properly with the summons and complaint in the action. In addition, defendant alleges that plaintiff is a citizen of California and that diversity of jurisdiction therefore does not exist. Finally, defendant contends that it has a meritorious defense to plaintiff’s claim of breach of contract. Accordingly, defendant asks that the Court issue an order staying the enforcement of the writ of execution and vacating the second default.

Discussion

A. Personal Jurisdiction

Defendant argues that plaintiff failed properly to serve it with the summons and complaint in this action. Federal Rule of Civil Procedure 4 provides the requirements for proper service of process. Defendant contends that by serving the summons and complaint upon its dispatcher, plaintiff failed to comply with Rule 4 which provides in pertinent part as follows:

(d) Summons and Complaint: Person to be Served The summons and complaint shall be served together. The plaintiff shall furnish the person making service with such copies as are necessary. Service shall be made as follows:
(3) Upon a domestic or foreign corporation ... by delivering a copy of the summons and of the complaint to an officer, a managing or general agent, or to any other agent authorized by appointment or law to receive service of process and, if the agent is one authorized by statute to receive service and the statute so requires, by also mailing a copy to the defendants.

In addition, pursuant to California law, service of process upon a corporation may be accomplished by delivering a copy of the summons and complaint “to the president or other head of the corporation, a vice president, a secretary or assistant secretary, a treasurer or assistant treasurer, a general manager, or a person authorized by the corporation to receive service of process.” Cal.Civ.Procedure Code § 416.10(b).

Defendant submits that service on the dispatcher was improper under both Rule 4 and the California Civil Procedure Code, because the dispatcher had no authorization to receive service of process. Defendant argues that the requirements of Rule 4 should be strictly construed absent waiver. See Grammenos v. Lemos, 457 F.2d 1067, 1070 (2d Cir.1972). Although defendant does admit that some courts in the Second Circuit have not required strict compliance with Rule 4, it argues that “even those courts have required substantial compliance with the rule. Service must be made upon a representative so integrated with the company that he will know what to do with the papers.” (Defendant’s Mem. at 9 n. 3). Accordingly, since the dispatcher was without authority to receive service on defendant’s behalf, defendant argues that the Court lacks jurisdiction over defendant and the default judgments entered by the Court are void and unenforceable.

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Cite This Page — Counsel Stack

Bluebook (online)
135 F.R.D. 60, 1991 U.S. Dist. LEXIS 3136, 1991 WL 46867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-bekins-moving-storage-co-nysd-1991.