MYRON H. THOMPSON, District Judge.
This case is currently before the court on two motions, one by each defendant, both claiming that Joe Hand failed to perfect service of process. Club BTS moves the court to set aside the default entered against it, while Koda moves the court to dismiss the claims against him.
During an on-the-record telephone conference to discuss these motions, however, counsel for both defendants agreed to accept service on their behalves; the time for Joe Hand to perfect service was extended accordingly.
In light of these waivers, and for the reasons that follow, Club BTS's motion to set aside default will be granted, and Koda's motion to dismiss will be denied as moot.
On June 23, 2014, Joe Hand filed its complaint against Koda and Club BTS. Joe Hand attempted to serve Club BTS by certified mail at the Alabama address for Club BTS's registered agent, Robert Cox, on July 17, 2014. The return receipt bears a signature which is illegible, though not inconsistent with "Robert Cox." Return Receipt (doc. no. 5). Two boxes, labeled "Agent" and "Addressee," appear next to the signature; neither is checked.
The deadline for Club BTS to answer the complaint was August 7, 2014. On September 23, 2014, Joe Hand moved for entry of default, and, on January 12, 2015, this court entered an order of default. On October 20, 2015, Club BTS filed a motion to set aside the entry of default, arguing that service was not in fact perfected.
Federal Rule of Civil Procedure 55(c) allows a court to set aside the clerk's entry of default for "good cause." The decision is within the discretion of the court,
Club BTS does not dispute that service by certified mail is proper under Federal Rule of Civil Procedure 4(h)(1)(A) and Alabama Rule of Civil Procedure 4(i)(2), nor does it dispute that Robert Cox is its agent and authorized to receive service of process within the meaning of Federal Rule of Civil Procedure 4(h)(1)(B). Instead, it simply disputes that Cox is the person who signed the certified-mail receipt.
In order to challenge the sufficiency of service of process, "the defendant first bears the burden of producing affidavits that, in non-conclusory fashion, demonstrate the absence of jurisdiction."
Although Koda is attesting to the non-occurrence of an event, Club BTS could have offered a less "conclusory" denial, less reliant on unadorned hearsay. An affidavit from Cox himself—attesting more specifically that he did not sign the certified-mail receipt filed by Joe Hand as proof of service, or was not present at the address in question on that date the certified-mail receipt was signed—would more squarely have been the sort of "specific factual declaration[] within the affiant's personal knowledge" that courts ought to credit.
Thus, the burden to show that service was in fact perfected shifts back to Joe Hand. The plaintiff must present "enough evidence to withstand a motion for directed verdict."
Alabama law provides: "[T]he only presumption created . . . by the trial court clerk's mailing of the summons[] and complaint to [an address] and the subsequent return of the signed certified-mail receipts from that address [is] a presumption that the process [was] properly mailed and properly delivered to [that address]. Standing alone, service of process at the proper address [does] not give rise to a presumption that the proper person was served. Additionally, [defendants] [do] not bear the burden of proving that the proper person was not served."
Here, as in
The court therefore finds good cause to set aside the default previously entered against Club BTS.
Koda sought dismissal of the claims against him, contending that he has not properly been served. As he has now waived service, this motion is due to be denied as moot. He, too, must answer or file a Rule 12 motion.
It is therefore ORDERED as follows:
(1) Defendant Club BTS, LLC's motion to set aside default (doc. no. 17) is granted.
(2) The order of default (doc. no. 11) previously entered against defendant Club BTS, LLL is vacated.
(4) Defendant Steven Hiro Koda's motion to dismiss (doc. no. 26) is denied.
(5) By no later than August 23, 2016, both defendants are to respond to the complaint in this case.
(6) Plaintiff Joe Hand Promotions, Inc.'s notice of error in filing (doc. no. 38) is construed as a motion to strike the improperly denominated Request for Waiver of Service (doc. no. 34), and is granted.
Joe Hand alleges in its complaint that it is unable to determine, without discovery, which provision was violated.