Schram v. Holmes

4 F.R.D. 119, 1943 U.S. Dist. LEXIS 1617
CourtDistrict Court, E.D. Michigan
DecidedApril 8, 1943
DocketNo. 1077
StatusPublished
Cited by11 cases

This text of 4 F.R.D. 119 (Schram v. Holmes) 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
Schram v. Holmes, 4 F.R.D. 119, 1943 U.S. Dist. LEXIS 1617 (E.D. Mich. 1943).

Opinion

PICARD, District Judge.

The only question involved in this case is this : May a Federal court use its discretion in determining whether or not service of summons nine months after the bill of complaint was filed is valid?

Plaintiff brings suit here on a bank assessment. Complaint was filed May 2, 1939, and the statute of limitations would have barred the action three months later or on [120]*120July 31st. Service of process was made on defendant, Williams, January 29, 1940, almost nine months after filing the bill of complaint and six months after the statute of limitations had elapsed. Defendant lived in Royal Oak, Michigan, during all of that period. His address was correctly listed under his name in the Royal Oak city directory and also in the Royal Oak and Detroit telephone (suburban .section) directories. No other person of his name or initials was listed in the Royal Oak book at that time. He is and was president of Cadillac Book Binding Company with offices in Detroit. His office address appears in the Detroit city directory and his company’s name is correctly listed in the Detroit city and telephone directories. He could easily have been served during all of those nine months.

Plaintiff insists that this court has no right to inquire as to the diligence of his or the Marshal’s efforts to effect service; that plaintiff did everything that was required of him and that the Marshal is presumed to have done his duty; that if the question of due diligence is a matter of discretion reviewable by this court, plaintiff claims he has met the test. In explanation of this he states that he had to start over 800 cases in the Federal court during the first six months of 1939 and this was only part of the litigation instituted during that period in this court; that he had to start these cases in order to toll the statute of limitations; that the Marshal had and did obtain additional process servers who were with him a very limited time and he then took the cases “in turn” serving defendants according to the alphabet; that this was an unusual situation and although nine months may not be due diligence under ordinary circumstances, that nevertheless because of the number of defendants, lack of bailiffs and process servers, and other numerous mitigating circumstances, it is apparent that due diligence was used in the service of this defendant, Williams.

Conclusions of Law

This question has evidently never been decided by our Federal courts, although in the case of Schram v. Koppin, D.C., 35 F. Supp. 313, we discussed the problem of whether we might inquire into the matter of due diligence and held that we could. Under the present rules there is no time set in which a summons must be served and for this reason plaintiff argues that a summons served any time would be good. He intimates, however, that defendant could go before the court at the end of a year and on the theory that no progress had been made, have the suit dismissed with prejudice. In the Koppin case, supra, although fifteen months had elapsed between filing of the complaint and serving of summons, we held the service good. We so-held, however, because there was an apparent attempt by defendant in that case to-avoid service. But here there is no such attempt on the part of defendant. In the case at bar the bailiff just didn’t get around! to serving Williams. When he finally reached his name alphabetically, service was quickly made.

It is now generally recognized that whdn a bill of complaint is filed in the Federal Court.suit is thereby commenced! and the statute of limitations is then tolled. 28 U.S.C.A. §§ 723b and 723c; Equitable Life Assur. Soc. of United States v. Schwartz et al., 5 Cir., 42 F.2d 646; Andis v. Schick Dry Shaver, Inc., 7 Cir., 94 F.2d 271, 274; Gallagher et al. v. Carroll et al.,. D.C., 27 F.Supp. 568; Maier v. Independent Taxi Owner’s Ass’n, 68 App.D.C. 307, 96 F.2d 579, 581.

Since there is no time set by our Federal Civil Court Rules in which service-must be made, then if plaintiff is correct* the statute of limitations can be tolled by non-service of the summons at least one-year. Thus, instead of having a six year statute of limitations, it becomes a seven year statute of limitations. And here defendant contends that if a defendant never knows there’s a law suit pending against him — as he probably wouldn’t — the summons might not be served for three, four* or possibly six years so that the six year statute1 of limitations would become a. twelve year statute of limitations.

In this particular case the statute of limitations was actually tolled six months.

In 5 Mo.Law Rev. 1, 5 (quoted in 1 Edmunds, Federal Rules, Rule 3, 1940 Supp.J it is said:

“The Advisory Committee, itself, concluded that statutes of limitation are matters of substantive law, and raised the question whether the Supreme Court, under -its power to malee rules of procedure* could make a ruling defining what constitutes the beginning of a suit within the meaning of a state or federal statute of limitations.”

[121]*121We quote the above for what it states about “statutes of limitation” being “matters of substantive law” and not on the question of “what constitutes the beginning of a suit”.

The enabling act, under which the rules governing procedure in the District Court of the United States were promulgated, granted the Supreme Court only the power “to prescribe, by general rules, for the district courts of the United States and for the courts of the District of Columbia, the forms of process, writs, pleadings, and motions, and the practice and procedure in civil actions at law. Said rules shall neither abridge, enlarge, nor modify the substantive rights of any litigant.” 28 U.S.C.A. § 723b.

If the statute of limitations is substantive law and if the rules may neither “abridge, enlarge nor modify the substantive rights of any litigant” and since Erie Railroad Co. v. Tompkins, 304 U.S. 64. 58 S.Ct. 817, 82 L.Ed. 1188, 114 A.L.R. 1487, makes it mandatory upon this court to apply the law of the forum, to-wit, of Michigan, there appears to us to be no answer other.than that this court has the right to determine whether the substantive rights of the parties have been “abridged,, enlarged” or “modified.”

This does not mean that we are writing anything new into the rules, but it has been held that distinction and difference between defects in process which are merely matters of form and substance must be recognized under both new and old statutes. Sweeney v. Greenwood Index-Journal Co., D.C., 37 F.Supp. 484.

In the State of Michigan its Rule 13 provides that the writ “may be made returnable * * * not less than ten days and not exceeding three months from the date when issued.” The Michigan rules provide for alias to follow alias and although there is no comparable prohibition or limitation upon time for service nor even a designation of time in the form of the Federal court writ, we believe that the limit set in the Michigan rules should be taken into consideration in determining whether or not there has been due diligence in the service of process in a Federal court case — particularly when substantive rights have been invaded.

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Cite This Page — Counsel Stack

Bluebook (online)
4 F.R.D. 119, 1943 U.S. Dist. LEXIS 1617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schram-v-holmes-mied-1943.