UnitedHealth Group Incorporated v. Selan

District Court, S.D. California·Decided August 26, 2025·No. 3:24-cv-02130·Unknown

Opinion

UNITEDHEALTH GROUP Case No.: 24-CV-2130 JLS (DTF) INCORPORATED, a Delaware corporation, ORDER GRANTING PLAINTIFF’S EX PARTE RENEWED MOTION Plaintiff, FOR LEAVE TO SERVE v. DEFENDANTS VIA ALTERNATIVE ELAINE SELAN, an individual; UNITEDHEALTH GROUP (ECF No. 11) INCORPORATED, a California nonprofit corporation; and DOES 1-10, inclusive, Defendants. Presently before the Court are Plaintiff UnitedHealth Group Incorporated’s Ex Parte Motion for Leave to Serve Defendants via Alternative Means (“Mot.,” ECF No. 11) and Memorandum and Points of Authorities in Support thereof (“Mem.,” ECF No. 11-1). Plaintiff seeks the Court’s permission to accomplish service by publication as it has not been able to successfully serve Defendants Elaine Selan and UnitedHealth Group Incorporated of California (“Defendant UHG”) (collectively, “Defendants”). Defendants have not filed an objection to the Motion. Having considered Plaintiff’s Motion, the evidence, and the law, the Court GRANTS Plaintiff’s Motion. / / / Plaintiff UnitedHealth Group Incorporated alleges that Defendant Elaine Selan registered a nonprofit mutual benefit corporation, which she called UnitedHealth Group Incorporated of California, using Plaintiff’s trade name and mark. See ECF No. 1 (“Compl.”) ¶ 5. This “unauthorized corporate registration,” Plaintiff alleges, “has already resulted in actual confusion.”1 Id. ¶ 4. Plaintiff filed suit against Defendants on November 13, 2024, seeking injunctive relief and treble damages under the Lanham Act, amongst other remedies. Id. at Prayer for Relief. On February 11, 2025, Plaintiff’s counsel Kenneth L. Wilton filed a declaration outlining Plaintiff’s mired efforts to serve Defendants. See ECF No. 7. Yet Plaintiff did not formally request any relief, so on May 5, 2025, the Court ordered Plaintiff to show cause why the action should not be dismissed for failure to timely effect service. See ECF No. 8. Plaintiff then timely filed its first Motion to serve Defendants by publication on June 4, 2025, ECF No. 9, but the Court denied the request on several grounds, see ECF No. 10 (“Order”). Despite concluding that Plaintiff had exercised reasonable diligence in serving Selan, the Court found that Plaintiff’s service attempts on Defendant UHG had not “been as numerous or varied,” thus falling short of the “reasonable diligence” standard. Id. at 5. But even if Plaintiff had exercised reasonable diligence in serving Defendant UHG, the Court continued, Plaintiff’s global request with respect to both Defendants was additionally flawed because Plaintiff had not demonstrated that a cause of action exists against Defendants as is required by California Civil Procedure Code Section 415.50(a)(1). Id. at 6. The Court, consequently, denied the Motion without prejudice to Plaintiff renewing its request within forty-five days. Id. at 7. The instant Motion reflects Plaintiff’s renewed request. This time, Plaintiff has met its burden to proceed with service by publication. 1 As evidence of said confusion, Plaintiff alleges that Selan was served as Plaintiff’s registered agent of Federal Rule of Civil Procedure 4(e)(1) provides that an individual may be served by “following state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made.” Additionally, Federal Rule of Civil Procedure 4(h)(1)(A) provides that a corporation may be served “in the manner prescribed by Rule 4(e)(1) for serving an individual.” California law, in turn, provides that “[a] summons may be served by publication if upon affidavit it appears to the satisfaction of the court in which the action is pending that the party to be served cannot with reasonable diligence be served in another manner specified in this article.” Cal. Civ. Proc. Code § 415.50(a). To determine whether a plaintiff has exercised “reasonable diligence,” courts assess whether the plaintiff “took those steps a reasonable person who truly desired to give notice would have taken under the circumstances.” Donel, Inc. v. Badalian, 150 Cal. Rptr. 855, 859 (Ct. App. 1978). Because of due process concerns, however, service by publication is only allowed “as a last resort.” Id. at 858. “Before allowing a plaintiff to resort to service by publication, the courts necessarily require him to show exhaustive attempts to locate the defendant, for it is generally recognized that service by publication rarely results in actual notice.” Watts v. Crawford, 896 P.2d 807, 811 n.5 (Cal. 1995) (citation and internal quotation marks omitted). Accordingly, “[t]he term ‘reasonable diligence’ . . . denotes a thorough, systematic investigation and inquiry conducted in good faith by the party or his agent or attorney.” Id. (citations omitted). However, “[a] number of honest attempts to learn defendant’s whereabouts or his address by inquiry of relatives, . . . and by investigation of appropriate city and telephone directories, voter registries, and assessor’s office property indices situated near the defendant’s last known location, generally are sufficient.” Id. (citations omitted). Moreover, a party requesting service by publication must show that a “cause of action exists against the party upon whom service is to be made or he or she is a necessary or proper party to the action.” Cal. Civ. Proc. Code § 415.50(a)(1). Such a showing must be made by “independent evidentiary support, in the form of a sworn statement of facts.” Cummings v. Brantley Hale, No. 15-cv-04723-JCS, 2016 WL 4762208, at *2 (N.D. Cal. Sept. 13, 2016) (quoting McNamara v. Sher, No. 11-CV-1344-BEN WVG, 2012 WL 760531, at *4 (S.D. Cal. Mar. 8, 2012)). Having once before rejected Plaintiff’s request, the Court is now assured that Plaintiff has satisfied Section 415.50(a) of the California Civil Procedure Code, thus unlocking service by publication as an available option for serving process on Defendants. While the Court previously found that Plaintiff had exercised reasonable diligence in serving Selan, it now finds that Plaintiff has exercised reasonable diligence in serving both Defendants. And whereas the Court previously found Plaintiff’s evidentiary support regarding the existence of a cause of action fatally lacking, Plaintiff has rectified that oversight in its Renewed Motion. Plaintiff’s efforts to serve Selan are detailed in the Court’s prior Order denying Plaintiff’s first request to serve by publication and need not be repeated here. See Order at 2. It suffices to say that the Court’s prior conclusion that Plaintiff had exercised reasonable diligence to serve Selan remains valid in light of the extensive efforts taken by Plaintiff to locate all possible known addresses where Selan could potentially be found. See id. at 5. As for Defendant UHG, the Court is likewise now persuaded that Plaintiff has exercised reasonable diligence to effect service. Previously, the Court noted that Plaintiff had “tried to serve Defendant UHG only twice,” both times sending a process server to the principal address listed on Defendant UHG’s Articles of Incorporation in Sheridan, Wyoming. See id. at 5–6. Although that “address turned out not to be the registered agent of service for Defendant UHG,” the Court determined that neither of the two attempts “seem[ed] likely to truly give notice to Defendant UHG,” id. at 6, so Plaintiff was ordered to make further service attempts or to offer a more detailed justification for why further attempts would be futile

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UnitedHealth Group Incorporated v. Selan, (S.D. Cal. 2025).

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