JOSEPH R. GOODWIN, Chief Judge.
Pending before the court is the motion by the plaintiff, Logan & Kanawha Coal Co., LLC ("L & K") to Order Service by the U.S. Marshals Service [Docket 5]. For the reasons outlined below, this motion is hereby
According to L & K, an arbitration hearing was held in Charleston, West Virginia on March 16, 2011, pursuant to the American Arbitration Association's Rules for Commercial Arbitration. (Mot. Confirm Arbitration Award [Docket 1], at 1.) On April 21, 2011, a majority of the arbitration panel issued an award requiring the defendant Detherage Coal Sales, LLC ("Detherage") to pay L & K a total of $2,724,719.50 plus L & K's reasonable attorneys' fees. (Id.) On May 13, 2011, L & K filed in this court its Motion to Confirm Arbitration Award, seeking, pursuant to the Federal Arbitration Act, 9 U.S.C. § 1, et seq. ("the FAA"), to confirm the arbitration award issued against Detherage and for an entry of judgment thereon.
On May 17, 2011, L & K filed the instant motion, requesting that this court order the United States Marshals Service for the Eastern District of Kentucky to serve L & K's Motion to Confirm Arbitration Award and supporting documentation upon Detherage Coal Sales, LLC ("Detherage"). L & K asserts that "the dictates of the FAA [...] require[] that service be made on Defendant by a United States marshal," because Detherage is a nonresident of the district where the arbitration award was made. (Mot. Order Service, at 1.) L & K asserts that Detherage is a resident of the Eastern District of Kentucky, but that district's Marshals Service will not serve the motion and supporting documentation without a court order. Accordingly, citing Federal Rule of Civil Procedure 4(c)(3), L & K requests that this court order that the U.S. Marshals Service in that district
As a preliminary matter, I note that the reluctance of the U.S. Marshals to serve this motion on the defendant without a court order is entirely understandable. The service requirements embodied in Rule 4 of the Federal Rules of Civil Procedure were amended by Congress in 1983 to drastically reduce the requirement of marshal service in civil cases, and it is the rare case that now requires it. See Fed. R.Civ.P. 4(c); Changes in Federal Summons Service Under Amended Rule 4 of the Federal Rules of Civil Procedure, 96 F.R.D. 81, 94 (1983) ("[T]he amendment's ostensibly principal purpose is [...] taking the marshals out of summons service almost entirely.") (emphasis added). It is also a decidedly strange result that a more formal service requirement should be imposed in the context of an arbitration than in a regular civil case. Nonetheless, I am bound here by the plain language of the statute.
The FAA provides, in pertinent part:
9 U.S.C. § 9 (2006) (emphasis added). Unfortunately, "there is scant case law interpreting the FAA's § 9 service requirement." Hancor, Inc. v. R & R Eng'g Prods., Inc., 381 F.Supp.2d 12, 15 (D.Puerto Rico 2005). A review of the existing case law reveals that district courts around the country are applying Section 9's service requirement inconsistently.
Some district courts have interpreted the language of the statute strictly, and required that plaintiffs seeking to confirm arbitration awards show proof of service by a marshal in order to obtain jurisdiction over nonresident defendants under the FAA. See Kirby Morgan Dive Sys., Inc. v. Hydrospace Ltd., No. 09-4934, 2010 WL 234791, at *4 (C.D.Cal. Jan. 13, 2010) (finding that when a nonresident, foreign defendant was not served by a marshal in a judicial district within the United States, "such service does not give the Court personal jurisdiction over Smith under § 9"); Med. Shoppe Int'l, Inc. v. Med. Solutions, Inc., No. 4:06MC622 CDP, 2006 WL 3538800, at *1 (E.D.Mo. Dec. 7, 2006) (citing 9 U.S.C. § 9 and noting without further explanation that "service must be made `by the marshal [...] in like manner as other process of
Other district courts have reached the opposite conclusion, finding that Section 9's service requirement is "anachronistic" and should not be followed because it fails to account for the amendments to the Federal Rules reducing the role of the U.S. Marshals Service as process servers in civil cases. See Hancor, 381 F.Supp.2d at 15 (citing Matter of the Arbitration Between InterCarbon Bermuda, Ltd. & Caltex Trading and Trans. Corp., 146 F.R.D. 64, 67 n. 3 (S.D.N.Y.1993) (quoting Changes in Federal Summons Service Under Amended Rule 4 of the Federal Rules of Civil Procedure, 96 F.R.D. 81, 94 (1983)) ("Section [9] is an anachronism not only because it cannot account for the internationalization of arbitration law subsequent to its enactment, but also because it cannot account for the subsequent abandonment of the United States marshals as routine process servers.")); see also United Cmty. Bank v. Campbell, No. 1:10cv79, 2011 WL 815684, at *2 (W.D.N.C. March 1, 2011) (citing Hancor, 381 F.Supp.2d at 15) (finding that service by certified mail, return receipt and by individual service in accordance with Federal Rule of Civil Procedure 4(e) was proper, and that "`[i]n these circumstances, Section [9] cannot be taken as the proper standard for service of process. Recourse must be had to the Federal Rules of Civil Procedure.'"); Own Capital, LLC v. David Smith Autoland, Inc., No. 10-mc-51002, 2010 WL 3623173, at *2 (E.D.Mich. Sept. 15, 2010); ("[T]he phrase `in like manner as other process of court' requires the party applying for confirmation of an arbitration award under section 9 to follow Fed.R.Civ.P. 4 in providing notice to adversarial parties."); May Fin. Corp. v. Granger Meadows, Ltd., No. Civ. A.3:02-CV-2482-L, 2003 WL 21246130, at n. 1 (N.D.Tex. March 31, 2003) (citing Matter of Arbitration Between Trans Chem. Ltd. and China Nat. Mach. Imp. & Exp. Corp., 978 F.Supp. 266, 300, n. 138 (S.D.Tex.1997) ("[Section] 9 `cannot be taken as the proper standard for service of process.'")). Instead, Section 9's reference to service by marshal has been interpreted by those courts to permit service by means now used for service of initial process under Rule 4 of the Federal Rules of Civil Procedure. See Hancor, 381 F.Supp.2d at 15; United Cmty. Bank, 2011 WL 815684, at *2; Own Capital, LLC, 2010 WL 3623173, at *2; May Financial Corp., 2003 WL 21246130, at *2. In support of this conclusion, courts have relied heavily on a statement by the Second Circuit Court of Appeals that the second part of the final sentence in Section 9 describing service on nonresidents that requires service be "in like manner as other process by the court," means that a plaintiff seeking to confirm an arbitration award need only comply with the requirements of Rule 4 for initial service of process of regular civil suits. See Reed & Martin, Inc. v. Westinghouse Elec. Corp., 439 F.2d 1268,
The courts declining to follow Section 9's requirement of service by marshal have, in essence, held that the requirement was repealed by implication by the amendments to the Federal Rules "because [§ 9] cannot account for the subsequent abandonment of the United States marshals as routine process servers." See Hancor, 381 F.Supp.2d at 15 (internal citations and quotations omitted). Indeed, Section 9's service requirement has not been explicitly repealed by statute or by the Rules, so any repeal would be by implication. "[R]epeals by implication are not favored." Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 442, 107 S.Ct. 2494, 96 L.Ed.2d 385 (1987); Posadas v. Nat'l. City Bank, 296 U.S. 497, 503, 56 S.Ct. 349, 80 L.Ed. 351 (1936). There is, however, an exception to the general disfavoring of repeal by implication. "Where provisions in the two acts are in irreconcilable conflict, the later act to the extent of the conflict constitutes an implied repeal of the earlier one." Posadas, 296 U.S. at 503, 56 S.Ct. 349. This exception is a narrow one. The United States Supreme Court has held that a party seeking a finding that a statute has been repealed implication
Traynor v. Turnage, 485 U.S. 535, 547-48, 108 S.Ct. 1372, 99 L.Ed.2d 618 (1988) (internal citations omitted). Accordingly, in order to supersede the requirement of 9 U.S.C. § 9, the Federal Rules governing service of process would, as a threshold matter
Fed.R.Civ.P. 4(c) (emphasis added). It further provides for the service, at issue here, of an individual within a judicial district of the United States:
Fed.R.Civ.P. 4(e) (emphasis added). 28 U.S.C. § 566(c) (2006), describing the powers and duties of the United States Marshals Service, states that "[e]xcept as otherwise provided by law or Rule of Procedure, the United States Marshals Service shall execute all lawful writs, process, and orders issued under the authority of the United States, and shall command all necessary assistance to execute its duties." Id. (emphasis added).
Read together, it is clear that although the intention and effect of the changes in Rule 4 and the scope of the statute governing the responsibility of the U.S. Marshals in the service context was to reduce that role, courts retain the discretion — and in some cases, the duty — to order marshal service. Fed.R.Civ.P. 4(c)(3). The Rules replaced the marshals as routine process servers, but clearly state that if "federal law provides otherwise," that procedure should govern. Fed.R.Civ.P. 4(e). The marshals have duty to execute process on behalf of the United States "[e]xcept as otherwise provided by law or Rule of Procedure," 28 U.S.C. § 566(c). "It is the primary role and mission of the United States Marshals Service to provide for the security and to obey, execute, and enforce all orders of the United States District Courts, the United States Courts of Appeals, the Court of International Trade, and the United States Tax Court, as provided by law." 28 U.S.C. § 566(a) (emphasis added).
In this case, the plain language of Section 9 of the FAA does not irreconcilably conflict with the provisions of the Federal Rules, and two are clearly `capable of coexistence.'
Section 9 of the FAA provides that after notice is "served upon the adverse party, [...] the court shall have jurisdiction of such party as though he had appeared generally in the proceeding." 9 U.S.C. § 9. "If," as here, "the adverse party shall be a nonresident, then the notice of the application shall be served by the marshal of any district within which the adverse party may be found." Id. Pursuant to Rule 4.1 of the Federal Rules of Civil Procedure, process (other than summons and subpoenas) may be served by a marshal "anywhere within the territorial limits of the state where the district court is located, and, if authorized by a federal statute, beyond those limits." Fed. R.Civ.P. 4.1(a). Thus, service on a nonresident, as authorized by Section 9, is proper and should be effected by the U.S. Marshals Service.
Accordingly, for the reasons outlined above, this motion is hereby
The court