Justice David Schmidt
Tribul Merchant Services moved to hold defendants Rory Cypers and Residual Income Opportunities (RIO) in civil and criminal contempt for violating a temporary restraining order (TRO). Defendants moved for dismissal of the complaint, arguing neither was properly served with the TRO, and summons and complaint, thus the court lacked personal jurisdiction over them, or for a traverse hearing. The complaint alleged defendants breached a non-solicitation provision in a contract by their alleged misrepresentations to and involvement with a merchant which comprised over 50 percent of Tribul’s business. The court noted if there was a representation that a certain individual, here, Rory’s father, Robert, had authority to receive service on behalf of a corporation, service upon such person may be proper even if he did not have actual authority. It stated as there was an issue of fact if Robert was actually Chief Financial Officer of RIO, or if the information in the filing with the Secretary of State was properly relied on by Tribul’s process server, the issue of service on RIO must be resolved at a traverse hearing. Also, as jurisdiction over Rory was not established, the court could not find he was bound by the TRO, thus dismissal was held in abeyance pending the hearing.
