It happens innumerable times, almost by rote. Lawyers draft contracts and, in order for the parties to avoid the specific procedural requirements concerning service of process (especially outside the country), they include a provision that service of process may be accomplished by, for example, using mail or overnight courier. A recent state appellate court decision in California invalidated service made in accordance with such a clause. This article discusses that decision and suggests practices to avoid a similar result.

The case in question is Rockefeller Technology Investments (Asia) VII v. Changzhou SinoType Technology Co. (Cal. Ct. App. 2018), which arose out of a transaction between Changzhou SinoType Technology Company, Ltd. (SinoType), a Chinese company, and Rockefeller Technology Investments (Rockefeller), an American investment partnership. When the relationship soured, Rockefeller pursued contractual arbitration in Los Angeles, SinoType did not participate in the arbitration, and a default award was issued for about $414 million. The award was confirmed and judgment entered in state court in California, again in a proceeding in which SinoType did not participate. Approximately 15 months later, SinoType moved to set aside the judgment.