Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_17-cv-02152/USCOURTS-casd-3_17-cv-02152-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 15:1692 Fair Debt Collection Act

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17cv2152-LAB (KSC)

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

FRANCIS CORTEZ,

Plaintiff,

v.

NATIONAL CREDIT ADJUSTERS, 

LLC, et al.,

Defendant.

Case No.: 17cv2152-LAB (KSC)

ORDER VACATING ENTRY OF 

DEFAULT; AND

ORDER TO SHOW CAUSE RE: 

DISMISSAL FOR FAILURE TO 

SERVE

The Court has twice ordered Plaintiff Francis Cortez to show cause why this 

action should not be dismissed: first for failure to prosecute, and later for failure to 

serve. (Docket nos. 5, 9.) After the first order was issued, Cortez filed a return of 

service and requested entry of default by the Clerk. The Clerk entered default as 

requested.

The second order to show cause pointed out that instead of serving 

Defendant, whose principal place of business is in Hutchinson, Kansas, Cortez 

served Lynanne Gares, the Litigation Services Manager for Corporate Service Co. 

whose address is in Wilmington, Delaware. Other than claiming that Gares was a 

proper agent for service of process, the return of service said nothing about why 

Gares or Corporate Service Co. was a proper agent. 

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17cv2152-LAB (KSC)

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Cortez has now filed a response (Docket no. 10) showing that her counsel 

has misunderstood California law. The response says Cortez’s counsel looked on 

the California Secretary of State’s website and saw that Corporation Service 

Company was Defendant’s in-state agent for service of process. Accordingly, she 

arranged for service on Corporation Service Company, albeit at a Delaware 

address.

Under Cal. Corp. Code ' 1502(b), corporations must designate an in-state 

agent for service of process. If the agent is itself a corporation, it is required to 

have complied with Cal. Corp. Code ' 1505. This, in turn requires the corporate 

agent to provide the complete street address of its office or offices in California

where it may be served with process, and the name of anyone there who is 

authorized to accept service. ' 1505(a)(1)–(2).

The California Secretary of State’s website lists Corporation Service 

Company, dba CSC – Lawyers Incorporating Service, as National Credit Adjusters’ 

in-state agent for service of process. That page instructs anyone who wants to 

find the most current California registered corporate agent to click on the link 

leading to CSC’s page, and then select the most current 1505 certificate. Clicking 

on that link takes one to the Corporation Service Company’s page. Cortez’s 

counsel should then have looked at the most recent 1505 certificate, as directed, 

which would have led to her to an address in Sacramento and a list of employees 

authorized to accept service (which does not include Lynanne Gares). Instead, it 

appears Cortez’s counsel for some reason treated Corporation Service Company’s 

headquarters in Delaware as the address where service was to be effected.

Because Cortez has never served National Credit Adjusters with process, 

the entry of default is VACATED. Cortez must serve National Credit Adjusters

/ / /

/ / /

/ / /

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promptly, and file adequate proof of service by June 14, 2018. Otherwise, this 

action will be dismissed for failure to serve. See Fed. R. Civ. P. 4(m).

IT IS SO ORDERED.

Dated: June 6, 2018

Hon. Larry Alan Burns

United States District Judge

Case 3:17-cv-02152-LAB-KSC Document 12 Filed 06/06/18 PageID.<pageID> Page 3 of 3