2024 Ohio 340
Ohio Ct. App.2024Background
- Continuum Transportation Services, Ltd. sued Elite International Corp., LLC, and its purported owner, Salvatore (Sam) Marcello, for fraud and breach of contract related to transportation services.
- Continuum served its complaint addressed to Marcello "c/o" Sheryl Canty, Elite's statutory agent, at an Illinois business address (Rolling Meadows).
- Marcello did not respond to the Ohio action; a default judgment was entered against him jointly with Elite for over $179,000.
- When Continuum tried to enforce the judgment in Illinois, Marcello appeared and asserted he was never properly served in Ohio because he never worked or resided at the Rolling Meadows address and Canty was not his agent.
- Marcello's Ohio Civ.R. 60(B) motion for relief from judgment was denied by the trial court, leading to this appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service of process on Marcello via Elite’s statutory agent at the Rolling Meadows address was sufficient to perfect personal jurisdiction | Addressed service to Marcello "c/o" Canty at a business address associated with him, which is sufficient for due process | Service was not at Marcello’s place of residence or business and Canty was not authorized to accept service for him personally | Service was insufficient; judgment against Marcello vacated |
| Whether service on a corporation’s statutory agent can effectuate service on an individual officer/employee under Civ.R. 4.2(A) | Service through the agent is adequate if address tied to defendant's business | Only personal service or at valid business/residence; agent for corporation not agent for individual absent express authority | Service by statutory agent for a company does NOT perfect service on an individual |
| Whether service was reasonably calculated to apprise Marcello of the action and give opportunity to respond | "Care of" at business address is reasonably calculated for notice | No evidence Marcello frequented Rolling Meadows or that it was his usual business address | Service not reasonably calculated to apprise Marcello |
| Whether judgment should be vacated for lack of valid service | No; service followed rules and address was linked to Marcello's business activities | Yes; judgment void where personal jurisdiction not obtained by proper service | Judgment vacated and case remanded |
Key Cases Cited
- Maryhew v. Yova, 11 Ohio St.3d 154 (personal jurisdiction requires perfected service or voluntary appearance)
- Akron-Canton Regional Airport Auth. v. Swinehart, 62 Ohio St.2d 403 (service must be reasonably calculated to provide notice; location, not recipient, is crucial)
- Castellano v. Kosydar, 42 Ohio St.2d 107 (service by certified mail does not require signature by the addressee for completion)