Seventh Circuit Rules Hague Service Convention Bars Email Service on Chinese Defendants

In Kangol LLC v. Hangzhou Chuanyue Silk Import & Export Co., Ltd., the U.S. Court of Appeals for the Seventh Circuit reversed the denial of a motion to vacate a default judgment and remanded the case for further proceedings. The court held that, when the Hague Service Convention applies, its authorized methods are exclusive and service by email on a defendant in China is improper.

The decision leaves an important threshold question for the district court: whether the Convention applies at all. Under Article 1, the Convention does not apply when the person’s address is unknown. On remand, the district court must determine whether the plaintiff made reasonably diligent efforts to identify and verify the defendant’s address.

Law.com reported on the ruling’s potential consequences for Schedule A litigation, in which groups of online sellers are frequently sued together and served electronically. CBC Law partner Wesley Johnson, counsel for the defendant-appellant, explained why the opinion may affect a significant number of default judgments entered against China-based e-commerce businesses.