In re Orion HealthCorp, Inc.
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 23-311-bk (2nd Circuit, Mar 12,2024) Published
- Tag(s):
-
- Ruling:
- Rejecting the holding of a non-precedential summary order, the Second Circuit clarified that parties may be added to an action -- without leave of the court and without reference to Fed. R. Civ. P. 21 -- if the amended complaint is filed within the 21-day period under Fed. R. Civ. P. 15(a)(1). Thus, the service of an amended complaint on a defendant's registered agent and at its mailing address is sufficient to establish personal jurisdiction and largely refutes any arguments the defendant may make under Fed. R. Civ. P. 60(b).
- Procedural context:
- The bankruptcy court denied the defendant/appellant's motion to vacate a default judgment. The appellant appealed to the district court, which affirmed. The appellant timely appealed the district court's decision to the United States Court of Appeals for the Second Circuit.
- Facts:
- Defendant/appellant Aquila Alpha LLC (Aquila) was formed under the supervision of Paul Parmer, the former CEO and Chairman of the Board of debtor CHT Holdco, LLC.
The Liquidating Trustee sued Aquila for the debtors to obtain ownership of a $23,7 million mortgage that had been sold to Aquila for $3.8 million. The Liquidating Trustee filed and served the complaint and amended the complaint within the 21-day period of Fed. R. Civ. P. 15(a). The Liquidating Trustee served the Amended Complaint and a Second Amended Complaint, and the default motion, at the address of Aquila's registered agent and an address in Hazlet, New Jersey. The Liquidating Trustee obtained the Hazlet address from emails sent by Palmer that directed the opening of a bank account for Aquila and that designated the Hazlet address as Aquila's mailing address. The bank records showed the Hazlet address as Aquila's mailing address.
Aquila failed to answer the Amended Complaint or the default motion, and the bankruptcy court entered default judgment against Aquila.
- Judge(s):
- CALABRESI, NATHAN, Circuit Judges, AND NAGALA, District Judge
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