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Flexi-Van Leasing, Inc. v. Gulf Fleet Marine Corp.
Citations: 108 F.R.D. 116; 1985 U.S. Dist. LEXIS 14362Docket: No. 85 Civ. 6590 (MP)
Court: District Court, S.D. New York; October 29, 1985; Federal District Court
Flexi-Van Leasing Incorporated filed a lawsuit in the Southern District of New York to enforce a guarantee of payment for maritime containers against Gulf Fleet Marine Corporation. The court has subject-matter jurisdiction based on diversity of citizenship. Gulf Fleet challenges the personal jurisdiction, arguing that service of process in New Orleans, Louisiana, was invalid. Gulf Fleet's motion to dismiss the case is denied. The guarantee includes a clause consenting to the jurisdiction of New York courts, which Flexi-Van asserts validates personal jurisdiction despite the service occurring out of state. Gulf Fleet contends that the lack of a specified service method in the guarantee invalidates this consent; however, the court clarifies that personal jurisdiction and service of process are distinct concepts. The primary function of service is to notify the defendant and assert jurisdiction, not to define the court's power over the individual. The court finds that the consent to personal jurisdiction encompasses any due process-compliant service method. Since Flexi-Van properly served Gulf Fleet’s authorized agent in New Orleans, due process requirements are met. Moreover, even if specifying a service method were necessary, Flexi-Van has adhered to the New York Civil Practice Law and Rules (CPLR) for service of process. The court concludes that a consent to personal jurisdiction remains valid even without a specified method for service. Parties to a contract can agree to submit to the jurisdiction of a specific court and establish the method of notice. In the absence of a different agreement, the statutory requirements for serving process are deemed sufficient for notice. Personal jurisdiction in diversity actions is determined by state law, and federal rules allow district courts to adopt state service of process rules. Gulf Fleet has consented to personal jurisdiction in New York, adhering to CPLR section 301. Under New York law, individuals subject to personal jurisdiction may be served outside the state as if they were served within it. For corporations, CPLR section 311(1) permits service through personal delivery to an authorized agent, which applies to the defendant's agent in New Orleans who was served. The motion to dismiss was denied.