Thomas & Howard Co. v. Trimark Catastrophe Services, Inc.

564 S.E.2d 569, 151 N.C. App. 88, 2002 N.C. App. LEXIS 684
CourtCourt of Appeals of North Carolina
DecidedJune 18, 2002
DocketCOA01-433
StatusPublished
Cited by13 cases

This text of 564 S.E.2d 569 (Thomas & Howard Co. v. Trimark Catastrophe Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas & Howard Co. v. Trimark Catastrophe Services, Inc., 564 S.E.2d 569, 151 N.C. App. 88, 2002 N.C. App. LEXIS 684 (N.C. Ct. App. 2002).

Opinion

TIMMONS-GOODSON, Judge.

Thomas & Howard Company, Inc. (“plaintiff’) appeals from an order granting Trimark Catastrophe Services’ (“defendant”) motion to dismiss for insufficient service of process and resulting lack of personal jurisdiction. For the reasons stated herein, we affirm the ruling of the trial court.

*89 Defendant is a Texas corporation authorized to conduct business in North Carolina with a registered office located in Mooresville, North Carolina and a designated registered agent for service, Bill Highsmith. In September of 1996, defendant entered into a contract with plaintiff, a food distribution business, in order to assist in the completion of repairs in the wake of Hurricane Fran. These repairs included the replacement of vinyl flooring in the facility owned and operated by plaintiff. The defendant subsequently retained Mintz, Flora & Highsmith, Inc. (“Mintz”) to oversee the floor repairs. Mintz subsequently entered into a subcontract with Unique Expressions Carpet & Interiors, Inc. (“Unique”) for installation of the floor.

On or around 1 January 1997, the flooring adhesive which held the tiles together began to seep onto the finished surface, creating an “unsightly” appearance and causing the tiles to loosen. Plaintiff subsequently contacted the Harleysville Insurance Group who filed a claim on behalf of plaintiff against defendant for the alleged deficiencies.

On 30 December 1999, plaintiff filed a complaint against defendant claiming negligence and breach of contract for damages sustained as a result of the deficiencies in the vinyl flooring. The summons and complaint were mailed to Vince Marshall, a registered agent of defendant located in Wylie, Texas. Defendant received a copy of plaintiff’s complaint through first-class mail in January of 2000. Defendant then contacted counsel for plaintiff in order to discuss pending claims. In September of 2000, the parties reached an impasse in the negotiations, whereupon Vince Marshall then retained the services of Smith Debnam Narron Wyche Story & Myers, L.L.P., to represent Trimark’s interest in this North Carolina lawsuit. Upon obtaining an extension of time to file an answer, counsel for defendant reviewed the court file and discovered that none of the defendants, including Mintz and Unique, had been served in any manner authorized by law. The court file also contained an administrative order entered 10 August 2000 discontinuing the action pursuant to Rule 4(e) of the North Carolina Rules of Civil Procedure due to insufficient service of process.

Defendant filed a motion to dismiss plaintiff’s complaint, asserting insufficient service of process. On 4 December 2000, an order granting defendant’s motion to dismiss was entered. Plaintiff appeals from this order.

*90 The issue presented by this appeal is whether the trial court obtained personal jurisdiction over defendant. Plaintiff concedes that its method of service on defendant of the summons and complaint was “technically defective.” However, plaintiff contends that defendant was estopped from asserting jurisdictional defenses as grounds for dismissal of the complaint. For the following reasons, we disagree.

At the outset, we note that the trial court entered the order dismissing plaintiffs action without making any findings of fact. “[0]n a motion to dismiss for insufficiency of process where the trial court enter[s] an order without making findings of fact,” our review is limited to determining whether, as a matter of law, the manner of service of process was correct. Winter v. Williams, 108 N.C. App. 739, 741, 425 S.E.2d 458, 459, disc. review denied, 333 N.C. 578, 429 S.E.2d 578 (1993).

In order for a court to exercise personal jurisdiction over a defendant, the issuance of summons and service of process must comply with one of the statutorily specified methods. See N.C. Gen. Stat. § 1A-1, Rule 4 (2001). Rule 4 of the North Carolina Rules of Civil Procedure provides the methods by which a summons and complaint must be served in order to obtain personal jurisdiction. Pursuant to Rule 4(j)(6), service of process on a corporation may be effectuated by one of the following methods:

a. By delivering a copy of the summons and of the complaint to an officer, director, or managing agent of the corporation or by leaving copies thereof in the office of such officer, director, or managing agent with the person who is apparently in charge of the office; or
b. By delivering a copy of the summons and of the complaint to an agent authorized by appointment or by law to be served or to accept service of process or by serving process upon such agent or the party in a manner specified by any statute.
c. By mailing a copy of the summons and of the complaint registered or certified mail, return receipt requested, addressed to the officer, director or agent to be served as specified in paragraphs a and b.

N.C. Gen. Stat. § 1A-1, Rule 4(j)(6) (2001).

N.C. Gen. Stat. § 55-15-10 (1999) sets forth the procedure for service of process on foreign corporations. Section 55-15-10 provides *91 that service on the registered agent is the typical method of service of process on a qualified foreign corporation authorized to transact business in this state. However, if the corporation does not have a registered agent, or if the agent cannot, with due diligence, be found at the registered office, section 55-15-10(b) authorizes service upon the Secretary of State. N.C. Gen. Stat. § 55-15-10 (b) (1999) (repealed 2001).

“Generally, where a statute specifically prescribes the method by which to notify a party against whom a proceeding is commenced, service of the summons and complaint must be accomplished in that manner.” Fulton v. Mickle, 134 N.C. App. 620, 623, 518 S.E.2d 518, 520-21 (1999). While a defective service of process may give the defending party sufficient and actual notice of the proceedings, such “actual notice does not give the court jurisdiction over the party.” Id. at 624, 518 S.E.2d at 521 (quoting Johnson v. City of Raleigh, 98 N.C. App. 147, 149, 389 S.E.2d 849, 851, disc. review denied, 327 N.C. 140, 394 S.E.2d 176 (1990). “Absent valid service of process, a court does not acquire personal jurisdiction over the defendant and the action must be dismissed.” Glover v. Farmer, 127 N.C. App. 488, 490, 490 S.E.2d 576, 577 (1997), disc. review denied, 347 N.C. 575, 502 S.E.2d 590 (1998).

Our examination of the record in the instant case reveals that service was not sufficient to give the trial court personal jurisdiction over defendant. First, the facts reveal plaintiff served defendant by mailing a copy of the summons and complaint by regular mail, rather than certified mail.

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Bluebook (online)
564 S.E.2d 569, 151 N.C. App. 88, 2002 N.C. App. LEXIS 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-howard-co-v-trimark-catastrophe-services-inc-ncctapp-2002.