Foxmind Canada Enterprises LTD. v. Badouyu Intelligent Iot Technology Co.

Background

The order addressed the next steps in the case. Foxmind Canada Enterprises LTD. filed a letter responding to the court’s request for a status update. It asked the court to lift an existing stay for 50 Defendants and grant its pending request for default judgment against those Defendants. It also asked the court to keep the stay in place for 86 other Defendants while it conducted additional investigation into their addresses.

Court’s Analysis

The court explained that courts have found reasonable diligence—and therefore an exception to the Hague Convention’s service procedures—when plaintiffs make comparable efforts to locate defendants. The court found that Plaintiff had searched the internet, reviewed Chinese business registries, sent mail using a tracked courier service, and pursued expedited discovery intended to help identify addresses. That discovery had not produced usable addresses.

The court concluded that Plaintiff had exercised reasonable diligence but had been unable to obtain addresses for the 50 Defendants. It also concluded that the Hague Convention did not apply when the address of the person to be served was unknown to the serving party.

Ruling

The court lifted the stay as to the 50 Defendants identified in Plaintiff’s filing. It did not grant the pending default-judgment request in this order; instead, it ordered Plaintiff to file new default-judgment papers specifically seeking default against those 50 Defendants.

The court kept the stay in place as to the remaining 86 Defendants pending further order. Plaintiff must provide a status update about efforts to obtain those Defendants’ addresses and its position on whether the stay should be lifted by November 10, 2023. Judge Vernon S. Broderick signed the order.