a man holding up a hand, refusing personal service

Personal Service Refused: What Happens Next?

Personal Service Refused: What Happens Next?

Refusing personal service of legal documents can complicate matters for process servers, solicitors, and creditors alike. However, legal principles ensure that such refusals do not derail proceedings. This blog explores a recent high-profile case, clarifying the steps required to effect valid personal service, even when the recipient is evasive or outright refuses acceptance.

Understanding Personal Service

Personal service involves delivering legal documents directly to the individual concerned. This ensures they are aware of the proceedings and can respond appropriately. In the UK, Rule 6.14 of the Insolvency Rules 1986 and Civil Procedure Rules (CPR) 6.5(3) govern personal service, requiring the server to hand the document to the individual or, if the individual refuses, to leave it with or near them after explaining its nature.

the refusal of personal service shown by a corporate man refusing to accept a document

Personal Service Refused: The Bankruptcy Petition of Mr. Gary Morby

A recent case involved the service of a bankruptcy petition on Mr. Gary Morby by Tremark Associates, acting on behalf of the creditor’s solicitors, Gate Gourmet. Mr. Morby agreed to meet a process server, Gary Beecham, at Heathrow Airport to accept the petition before leaving the country. What followed was a series of events that brought into question what constitutes valid personal service.

Key Events:

1. The process server met Mr. Morby, who was accompanied by a friend, Mr. Malik. The process server handed the petition to Mr. Morby, who immediately passed it to Mr. Malik.
2. Mr. Malik claimed there were errors in the petition and personal service was refused, eventually discarding the document in a bin.
3. The creditor’s solicitors emailed a copy of the petition to Mr. Morby.

Mr. Morby challenged the petition on grounds of lack of jurisdiction and ineffective service. The court dismissed his initial challenge, but he was granted permission to appeal.

The Appeal: Clarifying Personal Service

Deputy Judge Edward Murray heard the appeal and referred to the two-stage test established in Kenneth Allison Ltd v AE Limehouse & Co (1992):

1. The Individual Must Be Told What the Document Contains
The primary goal is to ensure the recipient knows the document’s nature and importance. In Re a Debtor (1939), the Court of Appeal ruled that service without such clarification was invalid. Similarly, in Walters v Whitelock (1994), it was held that the individual must understand the document requires their attention.

2. The Document Must Be Left With or Near the Individual
The document must be left in a way that the recipient has a reasonable opportunity to take possession. In Tseitline v Mikhelson (2015), service was deemed valid even when the document was placed on the recipient’s body and subsequently discarded by them.

a judge making a decision on a court case

Court Findings in Mr. Morby’s Case

Applying this test, Deputy Judge Murray upheld the original ruling:
– Awareness: Mr. Morby was informed of the document’s nature. He knew the meeting’s purpose and discussed the petition’s contents with Mr. Malik, therefore it wasn’t plausible to refuse personal service.
– Proximity: The petition was handed to Mr. Malik in Mr. Morby’s presence, satisfying the requirement that it be left with or near him.

The judge concluded that Mr. Morby’s refusal to accept the document did not invalidate service. His appeal was dismissed, affirming the bankruptcy order.

Key Takeaways for When Personal Service Is Refused:

1. Clear communication: Always inform the recipient of the document’s nature and importance.
2. Proximity matters: If the recipient refuses to accept the document, leave it nearby in a way that allows them to take possession.
3. Detailed records: Document every step of the service process, including any refusals or evasive behavior.
4. Legal support: When faced with outright refusal, consider seeking a court order for substituted service through alternative means, such as email or posting to a known address.

a document being handed over to someone but being met with refusal

FAQs

Q1: What happens if someone refuses to accept served documents?
If an individual refuses to accept legal documents, the process server can inform them of the document’s nature and leave it nearby. This constitutes valid service under the law.

Q2: Can legal proceedings continue if personal service is refused?
Yes. Once valid service is established, legal proceedings can continue, even if the recipient refuses to accept the documents.

Q3: What is substituted service?
Substituted service is an alternative method used when personal service is impractical. It requires a court order and may involve serving documents via email, posting them to a last known address, or other reasonable methods.

Q4: Are there consequences for evading service?
Yes. Attempting to evade service does not stop legal proceedings and may result in judgments made in the individual’s absence.

This case underscores the importance of adhering to established principles for personal service. By following the two-stage test, process servers and solicitors can ensure that service is valid, even in challenging circumstances.

A copy of the full judgment can be viewed by clicking here.

Categories

  • Guidance
  • Process Serving

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