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Narria Investments Ltd. filed a suit in a Texas State Court against several defendants, including Harveston Securities Inc., a securities dealer. Harvestons is registered with the state of Texas and thus may be served with a summons and a copy of a complaint by serving the Texas securities commissioner. In this case, the return of service indicated that process was served on the commissioner by delivering to JoAnn Kocerek defendant, in person, a true copy of this summons together with the accompanying copies of the complaint. Harvestons did not file an answer, and Narnia obtained a default judgment against the defendant for $365,000, plus attorneys fees and interest. Five months after this judgment, Harvestons filed a motion of a new trial, which the court denied. Harvestons appealed to a state intermediate appellate court, claiming that it had not been served in strict compliance with the rules governing the service of process.

a. Harveston asserted that Narnia's service was invalid in part because,the return of service states that process was delivered to JoAnn Kocerek and did not show that she had the authority to accept process on behalf of Harvestons or the Texas Securities Commissioner. Should such a detail, if it is required, be strictly construed and applied? Explain.

b. Whose responsibility is it to see that service of process is accomplished properly? Was it accomplished properly in this case? Why or why not?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91952858

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