Unreported / Non-Citable
Background
Joseph Wang alleged that, over ten months, he paid $719,427.10 to National Mediation, LLC and its owner, Oscar Warren Wells, III, without knowing what debt they were purportedly collecting. He claimed that fear and coercion caused him to make the payments and sued for violations of federal debt-collection laws and the Texas Finance Code, as well as invasion of privacy.
A process server reported personally serving Wells and serving an unidentified “Jane Doe” described as authorized to accept service for National Mediation. Neither defendant appeared, and the clerk entered default. Wang then moved for a default judgment.
The Court’s Holding
The court denied Wang’s motion for default judgment without prejudice and vacated the clerk’s entry of default because Wang had not demonstrated proper service on either defendant. The AO 440 proof-of-service forms did not state that the complaint, as well as the summons, had been served, and Wang submitted no supporting affidavits establishing service of the complaint.
Service on National Mediation was independently deficient because the record did not establish that the unidentified “Jane Doe” was an officer, managing or general agent, registered agent, or other person authorized to receive process for the company. Without proper service, the court lacked personal jurisdiction to enter a valid default judgment. The court gave Wang until October 29, 2026, to file legally sufficient proof of service on both defendants, warning that failure to do so would result in dismissal without prejudice.
Key Takeaways
- A plaintiff seeking default judgment bears the burden of proving valid service of both the summons and the complaint.
- A bare statement that an unidentified person was authorized to accept service for a company does not establish proper corporate service.
- Because proper service is necessary for personal jurisdiction, deficient service supplies good cause to vacate an entry of default.
Why It Matters
The ruling underscores that a defendant’s failure to appear does not excuse defects in service. Before entering default judgment, a federal court must independently ensure that service complied with applicable federal or state law and that it has personal jurisdiction over the defendant.
Practitioners should ensure that returns expressly document delivery of both the summons and complaint and, when serving an entity, identify the recipient and establish that person’s authority to accept process.