Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_03-cv-01481/USCOURTS-casd-3_03-cv-01481-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Other Contract

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

TRAYCE TAIN, trustee of the TAIN

FAMILY TRUST, dated September 23, 1997,

Plaintiff,

CASE NO. 03cv1481- IEG - NLS

ORDER SETTING ASIDE DEFAULT

JUDGMENT AS VOID 

vs. [Doc. 26]

EDWARD P. HENNESSEY, JR.; and

CHESTERFIELD CAPITAL GROUP,

L.L.C.,

Defendants.

On March 3, 2009, Defendant Edward Hennessey specially appeared and filed a motion to set

aside default judgment as void pursuant to Federal Rule of Civil Procedure 55(c) and Rule 60(b)(4).

(Doc. 26.) Defendant claims the Court lacks personal jurisdiction over him due to a defect in service

of process. In response, Plaintiff filed a notice of non-opposition. (Doc. 31.) Having reviewed the

parties’ submissions, and for the reasons set forth below, the Court GRANTS Defendant’s motion.

BACKGROUND

On July 24, 2003, Plaintiff filed the complaint alleging (1) fraud, (2) failure of consideration,

(3) breach of contract, and (4) common count for money had and received. (Doc. No. 1.) 

On January 27, 2004, upon application by Plaintiff, the Court issued an Order for Service by

Publication of Summons. (Doc. No. 7.) The Order required the summons be published in a

newspaper of general circulation in St. Louis Missouri. Id. On October 18, 2004, Plaintiff filed her

Proof of Service by Publication, which consisted of the Declaration of Monette L. Blue. Ms. Blue

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stated the summons had been published in the Riverfront Times “six times for six successive weeks

in the month of July.” The Riverfront Times is a free paper with no list of subscribers.

The Clerk of Court entered default on October 22, 2004. Plaintiff then filed an Application

for Default Judgment, which the Court Granted in Part and Denied in Part on May 6, 2005. Pursuant

the Court’s order, judgment was entered against Defendant in the total amount of $365,120.75.

In late 2008, Plaintiff attempted to enforce the Judgment through the Circuit Court of St. Louis

County, Missouri by way of a garnishment of the Defendant’s wages. Until he received notice of the

garnishment proceedings, Defendant asserts he had no notice of the action against him and had no

opportunity to appear and respond to the complaint.

LEGAL STANDARD

“Motions to vacate a default judgment, like the one in this case, are cognizable under Fed. R.

Civ. P. 60(b).” TCI Group Life Ins. Plan v. Knoebber, 244 F.3d 691, 695 (9th Cir. 2001). Rule

60(b)(4), the pertinent subsection, grants the Court discretion to relieve a party from a judgment if “the

judgment is void.” Fed. R. Civ. P. 60(b)(4). A judgment is void where plaintiff has not made

effective service. See Mason v. Genisco Tech. Corp., 960 F.2d 849, 851 (9th Cir. 1992). 

Under Federal Rule of Civil Procedure 4(e)(1), a plaintiff may serve an individual by

“following state law for serving a summons in an action brought in courts of general jurisdiction in

the state where the district court is located or where service is made.” In California, a summons may

be served by publication if “upon affidavit it appears . . . that the party to be served cannot with

reasonable diligence be served in another manner specified in this article . . . .” Cal. Code. Civ. P. §

415.50. California Government Code §6060 requires the notice be “published in a newspaper of

general circulation for the period prescribed.” A “newspaper of general circulation” is a “newspaper

published for the dissemination of local or telegraphic news and intelligence of a general character,

which has a bona fide subscription list of paying subscribers, and has been established . . . for at least

one year preceding the date of the publication . . . .” Cal. Gov. Code §6000. 

DISCUSSION

In Eureka Reporter v. Times-Standard, 165 Cal. App. 4th 891, 895 (2008), the California Court

of Appeal found the Eureka Reporter was not a “newspaper of general circulation” because it was a

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free newspaper that did not have a bona fide subscription list of paying customers. The Court found

a list of recipients, who made donations to offset home delivery costs, did not qualify as a subscription

list because, among other things, the amount donated did not correspond to the number of issues

received. Id.

In the instant case, the parties agree the Riverfront Times is not a “newspaper of general

circulation” because it does not have a “bona fide subscription list of paying customers. The word

“free” appears on the upper right hand corner of the front page. (Lodgement 1.) On page 5, the

following statement appears:

Riverfront Times is available free of charge, limited to one copy per

reader. Additional copies of the current issue may be purchased for

$1.00 plus postage, payable in advance at the Riverfront Times office.

Riverfront Times may be distributed only by Riverfront Times

authorized distributors. No person may, without prior written

permission of Riverfront Times, take more than one copy of each

Riverfront Times weekly issue.

(Lodgement 1 at 5.) This statement indicates the Riverfront Times does not have a subscription list,

but instead is distributed for free by local distributors. Therefore, publication in the Riverfront Times

does not satisfy California’s service by publication, rendering service defective. For this reason, the

Court GRANTS Defendant’s motion to set aside judgment because the judgment is void. 

IT IS SO ORDERED.

DATED: April 30, 2009

IRMA E. GONZALEZ, Chief Judge

United States District Court

Case 3:03-cv-01481-IEG-NLS Document 33 Filed 04/30/09 Page 3 of 3