In March 2022, the Florida House of Representatives unanimously voted to pass SB 1062 (“The Bill”), legislation that would “streamline and modernize” the service of process in the Sunshine State. Service of process is a procedural mechanism in litigation that ensures each person receives “due process” as prescribed by the Constitution of the State of Florida. In simple terms, the rules governing “service of process” ensure any person named in a lawsuit gets proper notice and an opportunity to answer and respond to allegations made against them.
The Bill, signed into law by the Governor in June 2022, will take effect on January 2, 2023. According to Florida Statutes, a complaint must be served upon the defendant within 120 days after a complaint is filed. Either a private process server or a law enforcement officer delivers the summons, which lets a defendant know that a lawsuit has been filed against them.
The Bill made significant additions to the step-by-step instructions regarding the process of service. The legislation is also intended to improve the way “process” is served on business entities of foreign corporations, and it allows for a substitution of service in situations when the nonresident or foreign business entity may be concealing their whereabouts.
The process server must follow a streamlined process that includes step-by-step instructions on how to effectively “serve process.” The process server can first attempt to serve any individual partner of the partnership. If a partner is unable to be served during regular business hours after one attempt, he or she may designate an employee or agent to receive the summons and complaint during that time.
If a partnership had previously selected a registered agent with the Department of State, serving that agent will be considered valid—just as if a partner were served. But in the case where none of the partners were effectively served process, the plaintiff may only seek judgment against the assets of the partnership.
The Bill also includes changes to the process of serving Limited Liability Partnerships (LLP) that must now be followed. In these cases, process must first be served on the current registered agent that must match the statement of qualification, a form that the LLP uses to register with Florida’s Secretary of State.
If the registered agent cannot be served after one attempt, process may then be served on any partner. If a single attempt to serve a partner during regular business hours fails, then the partner may designate an employee to accept the service of process during regular business hours.
After these steps, if the process server is still unable to serve the complaint after this attempt, process can be served on the person in charge of the partnership during regular business hours. Finally, if the service of process cannot be completed after any of these steps, the process may be served on the Secretary of State.
In the same vein of amending the service of process to Limited Liability Partnerships, the Bill will also affect domestic and foreign limited liability companies. More precise terminology regarding these business entities are defined in the bill as follows.
Regarding limited liability partnerships that are engaging in business in Florida but are not registered in the state, these partnerships will be considered nonresidents who may be served process.
On the other hand, Registered Foreign Limited Liability Companies are those companies that have been registered with the Department of State.
The new procedure will also include numerous steps that the process server can take when notifying a party that a lawsuit has been filed against them. Those steps include, but are not limited to, serving a manager of the domestic or foreign limited liability company when a registered agent is unable to be served after a single attempt to the use of a commercial package delivery company—such as FedEx or UPS—to deliver service of process.
The new Bill also permits a plaintiff to petition the court to appoint an individual to receive the service of process on behalf of the dissolved limited liability company. In addition, the Bill also amends potential manners of service to include e-mail or “other technology,” making it easier for a plaintiff to serve a defendant in the event that previous attempts have failed.
The Bill further expands the use of electronic delivery when the party is being served by the method of “substitute service.” This process involves a series of steps designed to give public notice of a party’s inclusion in a lawsuit in lieu of personally serving the person or entity. A nonresident, individual, corporation, or other business entity formed in any other state may be served not only by certified mail, a commercial package delivery firm, but also by electronic transmission.
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