NONPRECEDENTIAL DISPOSITION

To be cited only in accordance with Fed. R. App. P. 32.1

United States Court of Appeals

For the Seventh Circuit

Chicago, Illinois 60604

Submitted April 19, 2013*

Decided May 23, 2013

Before

FRANK H. EASTERBROOK, Chief Judge

ANN CLAIRE WILLIAMS, Circuit Judge

DAVID F. HAMILTON, Circuit Judge

No. 13-1280

ATRELLA R. REYNOLDS,

Plaintiff-Appellant,

v.

AAA AUTO CLUB ENTERPRISES,

Defendant-Appellee.

Appeal from the United 

States District Court for the 

Southern District of Illinois.

No. 3:12-cv-00200-DRH-PMF

David R. Herndon, 

Chief Judge.

Order

At a job fair in St. Louis, Atrella Reynolds applied for a job with “AAA Auto Club 

Enterprises,” the name the organization used at the fair. She did not get the position 

and filed a charge of discrimination with the EEOC. It concluded that Reynolds wanted 

a job with AAA Missouri, one of many businesses that formerly used the title “American Automobile Club,” and attempted to conciliate her grievance with AAA Texas. This 

is not as strange as the names suggest. “Auto Club Enterprises,” an AAA business 

based in Southern California, has agreements with more than 20 AAA organizations

across the nation to provide administrative services. One service apparently is hiring at 

job fairs, and another is the handling of discrimination complaints, which for some 

years Auto Club Enterprises handled through attorney Derek Lipscombe, who lived in 

 

* Defendant did not enter an appearance in the district court and is not participating in this appeal. 

We have decided that oral argument is not necessary. See Fed. R. App. P. 34(a); Cir. R. 34(f).
No. 13-1280 Page 2

Texas. By the time the EEOC attempted to deal with Lipscombe, however, he had left 

this position, and either Auto Club Enterprises had not named a replacement or the 

EEOC did not discover the right person to contact.

After the EEOC sent Reynolds a right-to-sue letter, she hired a process server to 

serve the complaint on:

AAA Auto Club Enterprises

Derek Lipscombe, Esq.

Managing Counsel

AAA Texas, LLC

Texas Regional Headquarters

6555 North State Highway 161

Irving, Texas 75039

This was the address the EEOC specified. The process server visited the address but 

was turned away and informed Reynolds: “I was told by administrative assistant [that] 

Derek Lipscombe does not receive papers at AAA Texas .... Instead they go to Kerville, 

TX office of National Registered Agents Inc. 1614 Sidney Baker St. Kerville Tx 78028.” 

The process server did not explain why he failed to leave a set of the papers with AAA 

Texas, which is not entitled to refuse service just because it thinks another address better. (Service was being attempted on AAA Auto Club Enterprises, the named defendant, and potentially on AAA Texas as its agent, but not on Lipscombe; he is a lawyer, 

not a litigant.)

Reynolds then tried serving “AAA Auto Club Enterprises c/o National Registered 

Agents” by mail; it refused to accept the papers. Reynolds checked with the Texas Secretary of State’s office, which told her that National Registered Agents is indeed the registered agent for service of process on AAA Texas. An online check by this court confirms this information. By then the district court had instructed the Marshals Service to 

serve process on Reynolds’s behalf. 28 U.S.C. §1915(d); Fed. R. Civ. P. 4(c)(3). The Marshals Service twice tried to deliver the complaint and summons to either AAA Auto 

Club Enterprises or AAA Texas via National Registered Agents in Houston, which both 

times refused to accept the papers even though the Houston address to which the Marshals Service tried to deliver the papers is the precise one listed by the Texas Secretary 

of State as the place where AAA Texas should be served. Puzzlingly, on both occasions 

the federal agent walked away, rather than leaving the papers for National Registered

Agents and its clients to deal with. (National Registered Agents must have retained at 

least one copy, however; it sent a letter on February 13, 2013, with copy to the court, 

stating that “AAA Auto Club Enterprises” had been served but asserting that it is not a 

Texas business. The letter did not say whether National Registered Agents had forwarded the papers to its client AAA Texas or to Auto Club Enterprises.)
No. 13-1280 Page 3

At this point the district court dismissed the suit for failure to achieve service within 

the time required by Fed. R. Civ. P. 4(m). The district judge did not analyze the several 

service attempts, did not say what Reynolds should (or could) have done differently, 

and did not recognize that documents delivered in hand have been served, no matter 

what the recipient does with them. A recipient that believes itself an improper defendant must file a motion to dismiss the suit. By failing to accept documents despite three 

deliveries in hand (one direct and two to its registered agent, plus a mailing to its 

agent), AAA Texas (at least) exposed itself to a default judgment. District courts have 

entered default judgment under similar circumstances, with this court’s approbation. 

See Swaim v. Moltan Co., 73 F.3d 711, 721 (7th Cir. 1996). It is hard for us to understand

why the district court dismissed the suit when plaintiff had done all that was possible, 

and the fault appears to lie with the confusing web of relations among AAA entities

plus a cavalier attitude by the staff of AAA Texas and National Registered Agents.

Perhaps it would have been prudent for the Marshals Service to have served three 

sets of papers: one on Auto Club Enterprises in California, one on AAA Missouri in 

Missouri, and one on AAA Texas (though the last of these, at least, did receive service, 

and Auto Club Enterprises may have made AAA Texas or National Registered Agents 

its agent for employment-discrimination complaints). The Marshals Service is supposed 

to do what is necessary to accomplish service. 28 U.S.C. §1915(d); Graham v. Satkoski, 51 

F.3d 710, 712–13 (7th Cir. 1995). It did not satisfy its duties with respect to Reynolds.

The order dismissing the suit must be vacated. On remand, the district judge should 

decide whether to authorize another round of attempted service, or to declare AAA 

Texas in default and leave the three AAA entities to work out among themselves where 

the responsibility lies.

We have considered another possibility: affirmance on the ground that the complaint is too skeletal to satisfy Fed. R. Civ. P. 8. But the Supreme Court held in 

Swierkiewicz v. Sorema N.A., 534 U.S. 506 (2002), that a conclusory complaint of employment discrimination is adequate. See also Bennett v. Schmidt, 153 F.3d 516 (7th Cir. 1998). 

There is undoubtedly tension between Swierkiewicz and later decisions, such as Ashcroft 

v. Iqbal, 556 U.S. 662 (2009), and Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007). But 

neither Iqbal nor Twombly overrules Swierkiewicz, and our duty is to apply the Supreme 

Court’s precedents unless the Justices themselves inter them. See, e.g., State Oil Co. v. 

Khan, 522 U.S. 3 (1997). The district judge may think it prudent to require Reynolds to 

file a more definite statement, see Fed. R. Civ. P. 12(e), but the complaint cannot be dismissed as inadequate under Rule 8 or Rule 12(b)(6).

VACATED AND REMANDED