Ahkeo Labs LLC v. Plurimi Investment Managers LLP
1:17-cv-01248
N.D. OhioJun 26, 2017Background
- Plaintiff Ahkeo Labs LLC sued Plurimi Investment Managers LLP and Alexander Dupee (both resident in London) for breach of contract and moved for alternative service of process.
- Defendants have U.S.-based counsel (Plurimi’s counsel in Cleveland, Dupee’s counsel in New York).
- Before filing, Ahkeo asked defendants to waive service; defendants refused.
- Ahkeo then asked defendants’ U.S. lawyers to accept formal service; counsel refused.
- Ahkeo moved under Federal Rule of Civil Procedure 4(f)(3) to serve the defendants by delivering process to their U.S. counsel.
- The district court evaluated whether (1) court-directed alternative service under Rule 4(f)(3) was proper and (2) the proposed method was prohibited by the Hague Convention or inconsistent with due process.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court may order alternative service under Fed. R. Civ. P. 4(f)(3) to serve foreign defendants via their U.S. counsel | Court may authorize alternative service under Rule 4(f)(3) without first exhausting Rule 4(f)(1) or (2); Ahkeo attempted waiver and domestic acceptance first | Defendants opposed accepting service through counsel (implicitly arguing service must follow other Rule 4(f) methods) | Court granted Rule 4(f)(3) relief; directed service on defendants through their U.S. counsel because court direction and lack of prohibition by international agreement satisfied Rule 4(f)(3) requirements |
| Whether service on defendants’ U.S. counsel is barred by the Hague Convention or violates due process | Hague does not apply where service on a domestic agent is valid and complete; serving counsel who know of the suit and declined to accept service is reasonably calculated to provide notice | Defendants relied on refusal to accept service (no persuasive argument that Hague applied) | Court held Hague Convention inapplicable and that service on U.S. counsel comported with due process (reasonably calculated to give notice) |
Key Cases Cited
- Volkswagenwerk Aktiengesellschaft v. Schlunk, 486 U.S. 694 (U.S. 1988) (Hague Convention applies only to transmittals abroad required as part of service)
- Rio Props., Inc. v. Rio Int'l Interlink, 284 F.3d 1007 (9th Cir. 2002) (Rule 4(f)(3) permits court-ordered alternative service not prohibited by international agreement)
