575 F. App'x 710
9th Cir.2012Background
- Court recalls its April 18, 2013 mandate and amends ruling due to a factual error about Ying Zuo's personal jurisdiction.
- Rubicon Global Ventures, Inc. and Z Motors, Inc. appeal (a) setting aside defaults for insufficiency of service and (b) dismissal of Ying Zuo and ZUSA for lack of personal jurisdiction.
- Court holds service was sufficient on all appellants except Zongshen Zuo (Zongshen Zuo).
- ZS Group was served via Zongshen, Inc.; substantial common ownership and agency factors support notice; Schlunk analogy cited to treat Zongshen, Inc. as agent for ZS Group/ZSIE.
- ZSIE and Zongshen, Inc. are closely related; Zongshen, Inc. treated as ZSIE’s agent for service under law, not requiring formal appointment.
- Service on Zongshen Zuo’s spouse in Florida was insufficient; not his usual residence and did not provide reasonable notice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service of process was sufficient on ZS Group/ZSIE | ZS Group/ZSIE were properly noticed via Zongshen, Inc. | Insufficient notice under due process and ORCP standards | Service found sufficient on ZS Group/ZSIE |
| Whether service on Zongshen Zuo was valid | Possibly proper via household delivery or other methods | Florida substitute service on spouse does not satisfy due process | Service on Zongshen Zuo insufficient |
| Whether Ying Zuo and ZUSA were subject to personal jurisdiction | Allege specific jurisdiction due to activities related to the forum | No prima facie showing of personal jurisdiction over Ying Zuo or ZUSA | Lack of prima facie jurisdiction; affirmed for Ying Zuo and ZUSA |
Key Cases Cited
- United States v. Berke, 170 F.3d 882 (9th Cir. 1999) (Rule 60(b)(4) void judgment standards)
- Thomas P. Gonzalez Corp. v. Consejo Nacional De Produccion De Costa Rica, 614 F.2d 1247 (9th Cir. 1980) (de novo review for Rule 60(b)(4) motions; no discretion)
- S.E.C. v. Ross, 504 F.3d 1130 (9th Cir. 2007) (due process notice; reasonable notice standard)
- Chan v. Soc’y Expeditions, Inc., 39 F.3d 1398 (9th Cir. 1994) (service of process methods; agency concepts)
- Schlunk, 486 U.S. 694 (1988) (agency for service based on closely related entities)
- Fields v. Sedgwick Associated Risks, Ltd., 796 F.2d 299 (9th Cir. 1986) (prima facie show required when no evidentiary hearing)