906 F.3d 711
8th Cir.2018Background
- Pulmosan, a dissolved New York corporation that made respiratory hoods, ceased maintaining a registered agent after filing a certificate of dissolution in 1986; its dissolution was later suspended for certain pre-1986 claims.
- Howard Weiss, former president, continued to receive Pulmosan mail at his Manhattan apartment; he died in May 2013 and no new agent was designated.
- In Oct. 2013 the Bells sued Pulmosan; they mailed the summons and complaint by certified mail to Weiss’s apartment address (delivery not restricted to addressee).
- The building doorman, Ceferino Figueroa, signed for the package and placed it in Weiss’s mailbox; Pulmosan did not respond and default was entered.
- The district court granted default judgment (~$1.3M), finding service effective via delivery to Weiss’s address/doorman and treating the doorman as agent for Pulmosan.
- Pulmosan moved under Fed. R. Civ. P. 60(b)(4) to vacate as void for lack of service; the district court denied relief. The Eighth Circuit reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether certified-mail delivery to a deceased former president's residence (signed by doorman) constituted valid service on the corporation | Service was proper: delivered to company’s former registered agent’s address; doorman acted with authority to accept and a living former officer (Weiss’s widow) lived there too | Service invalid: Weiss was dead so could not accept service; doorman had no authority to accept on behalf of Pulmosan; no agent designated after Weiss’s death | Service was invalid; default judgment void for lack of personal jurisdiction |
| Whether a building doorman can be treated as the corporation’s agent for service absent evidence of authorization | Doorman regularly signed and handled Weiss’s mail; plaintiffs used best available address | No evidence doorman worked for or was authorized by Pulmosan; agency ends at principal’s death | Doorman not a corporate agent; Fashion Page and other NY cases distinguishable |
| Whether New York or Arkansas law supports retroactive validation of service via a former officer or household member | Living widow/former officer at same address cures defect | No authority that a pre-dissolution corporate officeholder’s status revives or that residence alone confers authority | Former officer’s residence/status does not validate service |
| Whether the 60(b)(4) motion was insufficient because defendant appeared or otherwise waived challenge | Plaintiffs contended Pulmosan’s motion filed later constituted appearance or that plaintiffs could re-serve | Pulmosan argued lack of service deprived court of jurisdiction, so judgment is void and must be vacated | Court held lack of service deprived jurisdiction; Rule 60(b)(4) relief required; judgment vacated |
Key Cases Cited
- Fashion Page, Ltd. v. Zurich Ins. Co., 406 N.E.2d 747 (N.Y. 1980) (discusses when subordinate employees may accept service for a corporation)
- Badger Dome Oil Co. v. Hallam, 99 F.2d 293 (8th Cir. 1938) (agency terminates upon principal’s death)
- Baldwin v. Credit Based Asset Servicing & Securitization, 516 F.3d 734 (8th Cir. 2008) (judgment void where court lacked jurisdiction)
- Printed Media Servs., Inc. v. Solna Web, Inc., 11 F.3d 838 (8th Cir. 1993) (improper service means lack of jurisdiction)
- Lyons v. Forrest City Mach. Works, Inc., 785 S.W.2d 220 (Ark. 1990) (service on a corporation valid where served on a genuine managing/general agent)