Shenzhen Zehuijin Investment Center v. Yingkui

Court of Appeals for the Ninth Circuit·Decided August 3, 2026·No. 24-6215·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

SHENZHEN ZEHUIJIN No. 24-6215 INVESTMENT CENTER, Limited D.C. No.

Partnership, 3:24-cv-00372-

MMA-DEB

Petitioner - Appellee,

v. OPINION

LIU YINGKUI,

Respondent - Appellant,

and

ZHANG XIN,

Respondent.

Appeal from the United States District Court for the Southern District of California Michael M. Anello, District Judge, Presiding

Argued and Submitted December 3, 2025 Pasadena, California

August 3, 2026

2 SHENZHEN ZEHUIJIN INV. CTR. V. YINGKUI

Before: Consuelo M. Callahan and Lucy H. Koh, Circuit Judges, and J. Campbell Barker, District Judge.*

Opinion by Judge Barker

SUMMARY**

Personal Jurisdiction

Affirming the district court’s judgment confirming a foreign arbitral award against Liu Yingkui, the panel held that the district court had general personal jurisdiction over Liu, who was physically present in the forum state.

The panel held that the Due Process Clause of the Fourteenth Amendment does not condition presence-based personal jurisdiction on service of process on the defendant’s person as opposed to other means of service of process. The panel thus rejected Liu’s Fed. R. Civ. P. 12(b)(2) defense of lack of personal jurisdiction.

The panel declined to resolve Liu’s argument that service of process was insufficient because that separate defense under Fed. R. Civ. P. 12(b)(5) was not raised in his motion to dismiss and was thus waived.

*

The Honorable J. Campbell Barker, United States District Judge for the Eastern District of Texas, sitting by designation.

**

This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader.

SHENZHEN ZEHUIJIN INV. CTR. V. YINGKUI 3

COUNSEL

Lena Streisand (argued), Proskauer Rose LLP, Los Angeles, California; Kevin T. Abikoff, Proskauer Rose LLP, Washington, D.C.; Meaghan Gragg, Yi-Chin Ho, and Holden Fitzgerald, Hughes Hubbard & Reed LLP, Los Angeles, California; for Petitioner-Appellee. Anthony J. Dain (argued), Procopio Cory Hargreaves & Savitch LLP, San Diego, California, for Respondent- Appellant.

OPINION

BARKER, District Judge:

“Among the most firmly established principles of personal jurisdiction in American tradition is that the courts of a State have jurisdiction over nonresidents who are physically present in the State.” Burnham v. Superior Ct. of Cal., 495 U.S. 604, 610 (1990) (plurality op.). We hold that the Due Process Clause of the Fourteenth Amendment does not condition the existence of presence-based personal jurisdiction on service of process on the defendant’s person as opposed to other means of service of process. We thus reject appellant’s Federal Rule of Civil Procedure 12(b)(2) defense of lack of personal jurisdiction. See infra Part III.A. We then decline to resolve appellant’s argument that service of process was insufficient because that separate defense under Rule 12(b)(5) was not raised in appellant’s motion to dismiss and is thus waived. See infra Part III.B.

4 SHENZHEN ZEHUIJIN INV. CTR. V. YINGKUI

I. Background This is a loan-collection case. In 2017, Shenzhen Zehuijin Investment Center loaned Liu Yingkui 160 million Chinese yuan. Liu did not repay the loan. The Investment Center took its repayment dispute to the Beijing Arbitration Commission, which entered an arbitral award for around 150 million yuan. A Singaporean court later ordered Liu to pay the award. But Liu did not pay.

The Investment Center then tried to enforce the award in the United States under chapter 2 of the Federal Arbitration Act, which implements the New York Convention by allowing domestic enforcement of foreign arbitral awards. 9 U.S.C. §§ 201–08. Understanding that Liu lived in the San Diego area, the Investment Center filed a petition in the U.S. District Court for the Southern District of California to confirm the arbitral award.

The process server hired by the Investment Center attempted twice to hand the petition to Liu at his California residence. Both attempts failed. On the third attempt, the process server left the petition with an adult who represented herself as a cotenant at the residence. The process server then mailed the petition to Liu’s residence by first-class mail and emailed the papers to Liu. Liu admits that he lived at the California address for around two years at the time of those events. Liu also admits receiving notice of this action.

Liu moved to dismiss the case under Federal Rule of Civil Procedure 12(b). The motion did not cite Rule 12(b)(5) or mention insufficient service of process. But the motion did invoke Rule 12(b)(2) and argue that the federal district court’s personal jurisdiction over Liu turned on whether a California state court would have personal jurisdiction over him. Liu then argued that a California court would not have

SHENZHEN ZEHUIJIN INV. CTR. V. YINGKUI 5

general personal jurisdiction because his domicile was China (even though he was physically present in California when served there). And Liu argued that a California court would not have specific personal jurisdiction because the arbitral award and the underlying loan occurred in China, not California.

The district court held that it had general personal jurisdiction because Liu was served with process while present in California. The district court rejected Liu’s argument that presence-based jurisdiction comports with due process only if the defendant is personally handed process papers. The court instead held that presence-based jurisdiction exists when a physically present defendant is served by the alternative means used here.

After rejecting Liu’s other requests for dismissal, the district court confirmed the arbitral award and entered judgment against him. Liu now appeals from that judgment. II. Jurisdiction and standard of review The district court had subject-matter jurisdiction under 28 U.S.C. § 1331 and 9 U.S.C. § 203, and we have appellate jurisdiction under 28 U.S.C. § 1291 and 9 U.S.C. § 16(a). We review de novo a district court’s denial of a motion to dismiss for lack of personal jurisdiction. FDIC v. British- Am. Ins. Co., 828 F.2d 1439, 1441 (9th Cir. 1987). III. Analysis On appeal, Liu advances several reasons why the district court could not exercise personal jurisdiction over him. First, he asserts that the Due Process Clause of the Fourteenth Amendment conditions presence-based personal jurisdiction on service of process on the defendant’s person in the forum state. Second, Liu asserts that, even if service of process on 6 SHENZHEN ZEHUIJIN INV. CTR. V. YINGKUI

the defendant’s person is not required, the Due Process Clause requires strict compliance with federal and state substitute-service provisions as a necessary jurisdictional predicate. Alternatively, Liu claims that at least substantial (versus strict) compliance with substitute-service regulations is required by the Due Process Clause.

Free access — add to your briefcase to read the full text and ask questions with AI

Shenzhen Zehuijin Investment Center v. Yingkui, (9th Cir. 2026).

Shenzhen Zehuijin Investment Center v. Yingkui (Shenzhen Zehuijin Investment Center v. Yingkui) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

§ 201
9 U.S.C. § 201
§ 1331
28 U.S.C. § 1331
§ 203
9 U.S.C. § 203
§ 1291
28 U.S.C. § 1291
§ 16
9 U.S.C. § 16