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Monday, September 28, 2009

Chinese Drywall Manufacturer Held in Default - Failed to Repsond to Service of Process

Over the last month I have mentioned United States Senate Bill 1606 as being important for Process Servers to be aware of.  This bill would make it easier for U.S. plaintiffs to effect service of process on foreign manufacturers by requiring them to maintain a registered agent here in the United States.

An example of the problems associated with the current system for effecting service and holding foreign manufactures responsible is a case being heard in Louisiana. The following information is from a blog called the Injury Board:

An Alabama and Florida home builder filed a motion asking the court to rule against Chinese Drywall Manufacturer, because the company had not responded to the lawsuit after the builder was finally able to serve the company in China this summer.

The ruling came during a hearing taking place in New Orleans, LA, where dozens of lawsuits against foreign manufacturers, building suppliers, and homebuilders have been consolidated.

The Foreign Manufacturers Legal Accountability Act of 2009, introduced this summer, will make it easier to hold foreign manufacturers accountable in the U.S. court system by doing several things:

  • Requires manufacturers to have an “agent” located in at least one state where the company does business that would accept service of process for any civil and regulatory claims.

  • Companies would consent to state and federal jurisdiction, holding foreign manufacturers accountable to those judicial standards

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