Narnia Investments, Ltd., filed a suit in a Texas state court against several defendants, including Harvestons Securities,

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Narnia Investments, Ltd., filed a suit in a Texas state court against several defendants, including Harvestons Securities, Inc., a securities dealer. (Securities are investments that include stocks and bonds.) Harvestons is registered with the state of Texas. -Thus, a party may serve a summons and a copy of a complaint on Harvestons by serving the Texas Securities Commissioner. In this case, the return of service indicated that process had been served on the commissioner "by delivering to JoAnn Kocerek defendant, in person, a true copy of this [summons] together with the accompanying copy(ies) of the [complaint]."

Harvestons did not file an answer, and Narnia obtained a default judgment against the defendant for $365,000, plus attorneys' fees and interest. Five months after this judgment, Harvestons filed a motion for a new trial, which the court denied. Harvestons appealed to a state intermediate appellate court, claiming that it had not been served in strict compliance with the rules governing service of process.

(a) Harvestons asserted that Narnia's service was invalid, in part, because "the return of service states that process was delivered to 'JoAnn Kocerek'" and did not show that she "had the authority to accept process on behalf of Harvestons or the Texas Securities Commissioner." Should such a detail, if it is required, be strictly construed and applied? Should it apply in this case? Explain.

(b) Who is responsible for ensuring that service of process is accomplished properly? Was it accomplished properly in this case? Why or why not?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Related Book For  book-img-for-question

The Legal Environment of Business Text and Cases

ISBN: 978-1305967304

10th edition

Authors: Frank B. Cross, Roger LeRoy Miller

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