LSNYC Advocates Help Pass New Process Server Legislation

New York’s City Council has passed legislation strengthening rules for process servers, including requiring that they electronically log every attempt and ensuring that deceitful process servers who dump papers instead of serving them — a trick known as “sewer service” — could be liable if the people they were supposed to serve then turn and sue them. The legislation comes after prolonged advocacy by housing and consumer attorneys from Manhattan Legal Services, Queens Legal Services, South Brooklyn Legal Services, and the Legal Support Unit– all programs of Legal Services NYC. (Above right: MLS Staff Attorney Elizabeth Da Victoria Lobo)

From Bloomberg Business Week:

The City Council approved the legislation largely to crack down on debt collection agencies that are often accused of failing to notify debtors that they have lawsuits pending against them.

Out of some 300,000 consumer credit cases filed in New York civil courts in 2008, about 80 percent resulted in default judgments in favor of the plaintiffs, the city said, meaning most defendants didn’t know they were being sued.

The bill addresses not only consumer credit but also the entire industry of process servers in New York City. Supporters of the legislation said improperly served papers prevent people from knowing debt collectors, landlords or others are taking action against them, and they often don’t find out until their wages are garnished or bank accounts are frozen.

“By raising standards in the industry and using new technologies, we will give New Yorkers a fair chance to answer claims against them,” said Councilman Daniel Garodnick, the bill’s sponsor.

Click here for the full March 25th article.

Under the new legislation, process servers must pass an exam showing they understand proper service of process inNew York City (under the current regulations, any person can pay a fee to become a licensed process server regardless of whether they understand the laws). They also must electronically log their attempts to serve papers,using wireless or GPS, and keep those records in a database for seven years.

The legislation creates a private cause of action for any person injured by the failure of a process server to act within the law, meaning that individuals will be able to hold a process server accountable for any harm they have willingly caused. The legislation also requires independent process servers to file a $10,000 surety bond and companies to file a $100,000 surety bond with the city to guarantee compliance with the regulations.

An April 5th Brooklyn Eagle article highlights why the changes are so needed:

One hard-to-believe anecdote [Johnson] Tyler related when he testified before the City Council best explains the outlandish practices of sewer servers.

Three process servers recorded that they visited Taylor’s home seven times, and that they spoke with “two neighbors” and Taylor’s “wife” in alleged attempts to serve him with legal papers.

“Unbeknownst to these liars is that the apartment is within a gothic mansion surrounded by an wrought iron fence located within the Greenwood Cemetery,” Tyler testified. “But for a moat, the building is as secure as a castle. You cannot enter it without ringing a bell at the gate and being admitted by the cemetery keeper, Taylor’s father. As for the neighbors, there are none other than the dead.”

Click here for the full article.

More coverage: City Limits: May 20, 2010. “City Tightens Screws On Debt Collectors”