Skyler Bishil v. LBF Travel Inc.
2:22-cv-06059
C.D. Cal.Nov 28, 2022Background
- Plaintiff Skyler Bishil booked airfare through SmartFares (operated by defendants LBF Travel, LBF Travel Management, and Mondee); his reservation was not confirmed but his card was charged $884.57. He requested a refund within the 24-hour cancellation period but did not receive it.
- Bishil filed a state-court complaint asserting RICO, California UCL and FAL claims, CLRA, and unjust enrichment.
- Process: LBF Travel and Mondee were personally served June 22, 2022; substituted service on LBF Travel Management was effected July 14–15, 2022 (summons left with Linda Taylor, person in charge, and a copy mailed to the authorized agent Michael H. Thomas on July 15).
- Under Cal. Civ. Proc. Code § 415.20(a), substituted service on a corporate agent is effective when the mailing completes service (deemed complete on the 10th day after mailing).
- Service on LBF Travel Management was thus deemed complete July 25, 2022; removal was filed by LBF Travel Management on August 26, 2022—two days after the 30-day removal deadline (Aug. 24).
- The Court held substituted service valid for a corporation and found removal untimely, granted Bishil’s motion to remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of substituted service under Cal. Code Civ. Proc. § 415.20 | Service was properly effected by leaving papers with the person in charge and mailing to the authorized agent; effective July 15 (mailing completed July 15) | Substitute service defective for lack of demonstrated "reasonable diligence" in attempting personal service | Substituted service on a corporation under § 415.20(a) is proper without a due‑diligence showing; effective as of July 15, 2022 |
| Timeliness of federal removal under 28 U.S.C. § 1446(b) | 30‑day removal clock began when substituted service was complete (deemed July 25); removal deadline Aug 24; removal filed Aug 26 → untimely | Removal was timely (alternative arguments regarding notice/exceptions and later acknowledgment of receipt) | Removal was untimely—filed two days after the 30‑day deadline; remand granted |
Key Cases Cited
- Corral v. Select Portfolio Servicing, Inc., 878 F.3d 770 (9th Cir. 2017) (federal courts are courts of limited jurisdiction)
- Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28 (U.S. 2002) (removal requires original federal jurisdiction)
- Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344 (U.S. 1999) (statutory removal time runs from effective service)
- United States ex rel. Walker v. Gunn, 511 F.2d 1024 (9th Cir. 1975) (removal deadline is mandatory and strictly construed)
- Earl W. Schott, Inc. v. Kalar, 24 Cal. Rptr. 2d 580 (Ct. App. 1993) (§ 415.20(a) applies to corporations and does not require due diligence)
- Hearn v. Howard, 99 Cal. Rptr. 3d 642 (Ct. App. 2009) (statutes governing substituted service are liberally construed to effectuate service)
