Triffin v. Jefferson Health Systems, Inc.

A-0694-02T3 (N.J. Super. App. Div. 2003) (Unpublished)

Opinion Date: June 25, 2003
Business Law
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CORPORATIONS; SERVICE OF PROCESS—A corporation doing business in New Jersey may be served with process by sending the summons and complaint to the New Jersey Secretary of State and it need not be personally served in its home state.

A Pennsylvania corporation doing business in New Jersey issued a check that was later dishonored. An assignee of the check sued the debtor in New Jersey to recover the money due. The assignee recovered a default judgment against the corporation and then filed a levy on a debt owed to the corporation by an insurance company. The corporation challenged the levy. The lower court found that the corporation was not properly served because it was not served personally in Pennsylvania. Instead, its New Jersey registered agent received the summons and complaint. The lower court also held that the money owed to the debtor by the insurance company was a trust fund that was not subject to levy. The Appellate Division reversed, noting that New Jersey statutes specifically allow service of process against a corporation by serving the corporation’s registered agent. The Court rejected the lower court’s determination that the monies owed to the debtor were not subject to levy because the rights of the underlying insured persons whose medical insurance claims would not be affected by the levy. Generally, all property of a debtor is subject to levy to satisfy a judgment. In certain circumstances, property may be exempt. Personal property, goods, chattel, and corporate stock not exceeding $1,000 in value and clothing are exempted from levy. In this case, the Court noted that the property was not personal property and was therefore subject to being levied. It also noted that the lower court decision was based on an assumption, without any basis in the record, that the funds were being held in trust to make payments on medical bills. It found the money being levied was an account receivable, and was therefore subject to being levied to pay the judgment.

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