Germantom International GmbH v. Epoch Media Group, LLC

Background

Germantom filed this action in November 2019, alleging breach of contract against Epoch Media Group, LLC. The court dismissed the original complaint for lack of subject-matter jurisdiction because Germantom had not alleged the citizenships of Epoch Media’s members, while allowing Germantom to refile within thirty days.

Germantom’s counsel later allegedly determined that Epoch Media was the wrong defendant. Germantom then filed a separate action naming Epoch Times Inc. and others. The court dismissed that second action as duplicative and directed Germantom to seek any substitution or addition of parties by motion in this case.

Motion and Service Dispute

Germantom moved to replace Epoch Media with Epoch Group Inc. doing business as Epoch Media Group and to amend its complaint. Epoch Media opposed the request and asked the court to dismiss the action under Federal Rule of Civil Procedure 41, asserting that Germantom had not properly served the New York Secretary of State or directly served the defendant.

The court explained that service of process is required before a federal court may exercise jurisdiction over a defendant. Under the applicable federal and New York rules, service on a limited liability company or corporation may be made through an authorized recipient or through the New York Secretary of State, subject to statutory requirements.

Germantom submitted the process server’s affidavit and receipts from February 12, 2021. The documents showed that two copies of the required papers were delivered to Nancy Dougherty, a Business Specialist 2 with the New York Secretary of State, and that the required $40 fee was paid for each service. The receipts identified Epoch Media and Epoch Group as the parties served and cited the applicable New York statutes.

Court’s Ruling

The court found that service through the New York Secretary of State was properly completed. It therefore did not decide whether Germantom’s separate service on the defendant’s receptionist was proper.

The court granted Germantom’s motion for leave to amend the complaint and for joinder. It directed the clerk to terminate Epoch Media Group, LLC as a defendant and substitute Epoch Group Inc. doing business as Epoch Media Group. Germantom was ordered to file an amended complaint with the revised caption within one week, and the scheduled oral argument was canceled.

The court declined to award Germantom attorney’s fees. It cautioned both sides that unnecessary delay or bad-faith conduct could lead to fees or other sanctions. Judge Alvin K. Hellerstein also directed the clerk to terminate the pending motion.