CAROL BAGLEY AMON, Chief District Judge.
Plaintiffs Jane Doe 1 and Jane Doe 2 initiated this action on September 29, 2014 alleging that defendant Meisels sexually harassed them in violation of Title IX, 20 U.S.C. §§ 1681-1688, as well as raising a number of state law contract and tort claims. Defendants moved to dismiss for improper venue under Federal Rule of Civil Procedure 12(b)(3), defective service of process under Rule 12(b)(5)
Defendant Meisels argues that service at Peninim's corporate address in New Jersey was inappropriate because he neither lives nor resides in the United States. Plaintiffs respond that because service was effectuated at a location Meisels held out as his place of business, service was proper under Federal Rule of Civil Procedure 4(e)(1) and C.P.L.R. § 308. Alternatively, plaintiffs have requested that the Court grant them leave to serve defendant Meisels in Israel, where he claims to permanently work and reside.
Pursuant to Rule 4(f), service of process in a foreign country may be made "by any internationally agreed means of service that is reasonably calculated to give notice, such as those authorized by the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents." Fed. R. Civ. P. 4(f)(1). In assessing the timeliness of such service, courts employ a "flexible due diligence standard," rather than the 120-day window set by Rule 4(m).
In this case, plaintiffs propose to serve defendant Meisels in Israel. Because both Israel and the United States are signatories to the Hague Service Convention, its provisions govern.
Nevertheless, defendants object to service in Israel. Defendants argue that service is untimely because plaintiffs failed to effectuate it within 120 days as required by Rule 4(m). But that argument misses the mark because Rule 4(m) plainly states it does not govern foreign service. Fed. R. Civ. P. 4(m) ("This subdivision (m) does not apply to service in a foreign country under Rule 4(f) or 4(j)(1).")(emphasis added).)
Under the correct standard, service would be timely because plaintiffs have acted diligently to serve Meisels.
Moreover, defendants have failed to identify any possible prejudice to Meisels from allowing service in Israel. Indeed, defendants concede that Meisels actually received the summons and has full knowledge of this litigation. (DE# 21 at 12.) Defendants further concede that the statute of limitations would not bar plaintiffs from refiling if the suit were dismissed due to insufficient process. (DE# 8.) Given those admissions and the Second Circuit's strong preference that that litigation be resolved on the merits, rather than by dismissal,"
Next, defendants move to dismiss under Rule 12(b)(3) arguing that this District is not the proper venue for this action. Plaintiffs bear the burden of showing proper venue.
Section 1391 of Title 28 provides three potential bases for venue in federal civil actions. 28 U.S.C. § 1391(a)-(b). The first two bases are inapplicable here because defendants do not reside in a single state, as required by§ 1391(b)(1), nor is there a single district where a significant part of the events took place, as required by§ 1391(b)(2). Accordingly, the only potential basis for venue is§ 1391(b)(3), which allows a civil action to be brought in "any judicial district in which
Although "Meisels concedes that he is subject to the [Court's] personal jurisdiction," defendants argue that venue is improper because the Peninim defendants may not be.
In their motion, defendants argue that plaintiffs fail to establish a Title IX claim for three reasons: (1) Title IX does not apply extraterritorially, (2) defendants do not receive federal funding, and (3) plaintiffs fail to allege discrimination because of their sex. But at oral argument, defendants conceded that the first two prongs of their motion raise questions of fact not amenable to resolution on a motion to dismiss. And defendants are simply wrong on the final prong because it is well-settled that "sexual harassment is a form of discrimination for Title IX purposes,"
Because the applicability of Title IX turns on the relatively straight-forward factual question of whether the Peninim defendants received federal funds, the Court directs the parties to conduct limited discovery on that issue.
As plaintiffs concede that Title IX provides the sole basis of federal jurisdiction, the Court declines to consider the state law claims at this time in the interest of judicial economy. If the Title IX claim proves viable following discovery on the issue of federal funding, defendants may renew their motion to dismiss the state law claims.
For the reasons set forth above, the Court directs plaintiffs to serve defendant Meisels in Israel and denies as moot plaintiffs' motion for an extension of time to serve. Defendants' motion to dismiss due to deficient service is denied without prejudice. The Court further denies defendants' motion to dismiss for improper venue. Finally, the Court denies defendants' motion to dismiss the Title IX claim and grants limited discovery on whether the Peninim defendants receive federal funds. The remainder of the motion to dismiss is held in abeyance pending completion of that discovery.
SO ORDERED.