Ryzhov v. $5,379,876.94 In United States Currency Formerly on Deposit in Sunflower Bank, NA

District Court, S.D. New York·Decided September 21, 2023·No. 1:23-cv-01072·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK EVGENY RYZHOV, Plaintiff, 23-CV-1072 (JMF) -against- MEMORANDUM OPINION KONSTANTIN MALOFEYEV; TSARGRAD AND ORDER MEDIA, Defendants. JESSE M. FURMAN, United States District Judge: Plaintiff Evgeny Ryzhov, a Russian national residing in Florida, brings this second amended complaint against Konstantin Malofeyev, who is also alleged to be a Russian national, and Tsargrad Media, a Russian company purportedly owned or controlled by Malofeyev. This matter is before the Court on Plaintiff’s motion for alternate service on Defendants in Russia under Rule 4(f)(3) of the Federal Rules of Civil Procedure. ECF No. 42-43. For the reasons set forth below, the Court denies the motion for alternate service, without prejudice to renewal. BACKGROUND By order dated April 27, 2023, the Court directed the Clerk of Court to issue summonses for Defendants Malofeyev and “Tsargrad TV,” which at the time was a named Defendant. On August 10, 2023, Plaintiff moved for entry of a default judgment against these Defendants, after making efforts to effect service on them in Russia by various means. See ECF Nos. 21-22, 33, 35-37. By order dated August 16, 2023, the Court denied Plaintiff's request for a certificate of default and ordered him to show cause in writing by August 30, 2023, why service was proper as to each Defendant. ECF No. 38. Plaintiff filed a declaration in response. See ECF No. 39. On September 6, 2023, the Court held that it would be “on firm ground dismissing the case for failure to properly serve Defendants” but granted Plaintiff an opportunity to file a motion for alternate service in order to propose a method of service that would overcome the deficiencies identified in the Court’s prior orders. ECF No. 40. Plaintiff then requested leave to file a second amended complaint to substitute Tsargrad Media, a nonpublic joint stock company, for Tsargrad TV, which he stated that he had learned is a television “channel and not an independent entity that could be sued.” ECF No. 41. The Court granted this application, and on September 19, 2023, Plaintiff filed the operative Second Amended Complaint. ECF No. 48.

Just before amending the complaint, on September 10, 2023, Plaintiff moved for an order, pursuant to Rule 4(f)(3) of the Federal Rules of Civil Procedure, that would authorize three alternative means of service on Tsargrad Media and Malofeyev. ECF Nos. 42-43. First, Plaintiff proposes alternate service by email on Defendants Tsargrad Media and Malofeyev, both at the email address tsargradtv@gmail.com.1 Second, Plaintiff proposes service by publication, although he does not identify a particular manner of publication. Third, Plaintiff proposes service by registered mail through the domestic Russian Postal Service. DISCUSSION When a defendant is outside the jurisdiction of the United States, Rule 4(f)(3) allows for service “by other means not prohibited by international agreement, as the court orders.” Fed. R.

Civ. P. 4(f)(3). A method of alternate service is acceptable if it “(1) is not prohibited by international agreement; and (2) comports with constitutional notions of due process.” U.S. S.E.C. v. China Intelligent Lighting & Elecs., Inc., No. 13-CV-5079 (JMF), 2014 WL 338817, at *1 (S.D.N.Y. Jan. 3, 2014) (citation omitted); Jian Zhang v. Baidu.com Inc., 293 F.R.D. 508,

1 In his earlier application for a certificate of default, Plaintiff indicated that he had served Malofeyev by email using the email address of an attorney: pavel.kuzmin.personal@gmail.com. See ECF No. 39, at 5. 512 (S.D.N.Y. 2013) (“Rule 4(f)(3) requires only that service be authorized by a court and ‘not prohibited by international agreement.’ So long as those conditions are met, it should not, and does not, matter whether service was attempted pursuant to Rule 4(f)(1) or (2) and, if so, whether or why such service was unsuccessful.” (citation omitted)). A proposed method of service comports with constitutional notions of due process when it is “reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.” Luessenhop v. Clinton Cnty., 466 F.3d 259, 269 (2d Cir.

2006) (quoting Mullane v. Cent. Hanover Bank & Trust Co., 339 U.S. 306, 314-15 (1950)). Here, as noted, Plaintiff proposes three methods of alternate service: (1) service by email; (2) service by publication; and (3) service by registered mail through the domestic Russian Postal Service. None of these methods is prohibited by international agreement, and the Court therefore considers whether, under the circumstances presented here, these means of alternate service comport with due process. A. Alternate Service by E-Mail “[A]s a general matter, service via email for a defendant residing in Russia may qualify as an alternative means of service under Rule 4(f)(3).” AMTO, LLC v. Bedford Asset Mgmt., LLC, No. 14-CV-9913, 2015 WL 3457452, at *7 (S.D.N.Y. June 1, 2015). “[C]ourts have

upheld service via e-mail [in] . . . cases [that] involved email addresses undisputedly connected to the defendants and that the defendants used for business purposes.” Id. at *8. By contrast, serving a defendant via email addresses on a company’s website is insufficient to provide a defendant with notice, absent evidence that a defendant “ever used or checked th[e] email address, for business purposes or otherwise, or that an e-mail sent to th[e] address would have been brought to [the defendant’s] attention.” Id. In this case, Plaintiff alleges the following: Defendants actively use and maintain their email addresses. They even took legal action against Google over restrictions placed on their joint account, tsargradtv@gmail.com. See Tsargrad Media v. Google, No. A40-155367/20, ruled by the Arbitration Court of the City of Moscow. ECF No. 43 (“Pl.’s Mem”), at 9. On this basis, Plaintiff argues that service of a summons and second amended complaint to the joint email address tsargradtv@gmail.com is reasonably calculated to apprise both Defendants of the pendency of this action. The citation to this legal proceeding is insufficient to allow the Court to ascertain that serving Defendants at the email address tsargradtv@gmail.com would provide them sufficient notice of these proceedings. Plaintiff does not provide any of the pleadings or orders from the action in the City of Moscow Arbitration Court. The Court thus does not have sufficient evidence to confirm that the address is in current use, in fall 2023, by Defendants Malofeyev and Tsargrad Media for business purposes, and that an e-mail sent to tsargradtv@gmail.com will be brought to the attention of both Defendants. See, e.g., Fortunato v. Chase Bank USA, N.A., No. 11-CV-6608 (JFK), 2012 WL 2086950, at *2 (S.D.N.Y. June 7, 2012) (“[I]n those cases where service by email has been judicially approved, the movant supplied the Court with some facts indicating that the person to be served would be likely to receive the summons and complaint at the given email address.”). Plaintiff’s application to serve both Defendants by email to tsargradtv@gmail.com is therefore denied without prejudice to a new application, supported by affidavits or other appropriate evidence, showing that service on each Defendant to a particular email address is reasonably calculated, under all of the circumstances, to apprise them of the pendency of the action, and their opportunity to answer the second amended complaint. As the Court has

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Ryzhov v. $5,379,876.94 In United States Currency Formerly on Deposit in Sunflower Bank, NA, (S.D.N.Y. 2023).

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