Opinion ID: 1194961
Heading Depth: 3
Heading Rank: 1

Heading: Blameworthy or Culpable Conduct

Text: In an effort to show he was not blameworthy or culpable, El-Batrawi claims he did not receive actual notice of the lawsuit, although counsel for El-Batrawi conceded at oral argument that service was legally effective. The district court, in adopting the Report and Recommendation of the Magistrate Judge in its entirety, concluded the MJK Trustee properly served El-Batrawi. The MJK Trustee mailed copies of the initial summons and complaint, and the amended complaint, to El-Batrawi at the Beckman address, pursuant to Federal Rule of Bankruptcy Procedure 7004. Because those documents were never returned to the MJK Trustee by the United States Postal Service, the law presumes El-Batrawi was effectively served. The fact that the summons and complaint were mailed to the correct street address, city and state, combined with the evidence that they were not returned to the trustee ... constitute prima facie evidence of the validity of the service. In re Foos, 204 B.R. 545, 547-48 (Bankr.N.D.Ill.1997); see also In re Ms. Interpret, 222 B.R. 409, 413 (Bankr. S.D.N.Y.1998) (Courts uniformly presume that an addressee receives a properly mailed item when the sender presents proof that it properly addressed, stamped, and deposited the item in the mail.); In re Thole, 31 B.R. 548, 550 (Bankr.D.Minn. 1983) (recognizing the strong presumption that letters duly mailed are duly received). In addition to the efforts of the MJK Trustee, the sworn affidavit of Elizabeth Fox (Fox), authorized process server for CIBC World Markets, Inc., a plaintiff in an action consolidated with the MJK Trustee case, [7] states that on October 4, 2004, she served an individual she recognized as El-Batrawi at the Beckman address. [8] The MJK Trustee contacted El-Batrawi's business associates in an attempt to locate El-Batrawi's whereabouts. El-Batrawi's business associates provided no assistance. Counsel for the MJK Trustee asked attorney David C. Scheper, El-Batrawi's counsel in a related California class action, if Scheper would accept service of process on behalf of El-Batrawi. Mr. Scheper declined. Like the district court, we find it implausible that Mr. Scheper, El-Batrawi's attorney, upon being informed of the Minnesota action, would not inform his client of that lawsuit. Even more compelling toward this conclusion is the transfer of the California class action lawsuit pending against El-Batrawi to the District of Minnesota for consolidated pretrial proceedings. After service on the Beckman address did not generate an appearance by El-Batrawi, the MJK Trustee also took the additional step of serving El-Batrawi by publication in the Los Angeles Times once a week for four successive weeks as permitted by the court. The MJK Trustee made a thorough investigation and inquiry into the whereabouts of El-Batrawi before resorting to service by publication. The law presumes the documents mailed to the Beckman address were received by El-Batrawi, and his mere denial is insufficient to overcome this presumption. See In re Outboard Marine Corp., 359 B.R. 893, 898 (Bankr.N.D.Ill.2007) ([M]ere denial of receipt of the summons and complaint falls short of what is required to overcome the prima facie evidence of service.). El-Batrawi was also served by publication. Service by publication allows a case to move forward when other attempts at service fail to produce an appearance by a necessary party. El-Batrawi's attorney was fully aware of the existence of the pending action in Minnesota. And, the district court had a reasonable basis upon which to conclude El-Batrawi had actual notice through personal service of another of the consolidated cases. The district court had more than enough information to conclude El-Batrawi had notice of the litigation through one or more of the foregoing means, and that El-Batrawi's assertions to the contrary lacked credibility. We conclude the district court did not abuse its discretion in concluding El-Batrawi was properly served, was evading service of process, and therefore was not blameless in his failure to timely appear.