New York Process Server Association Sues the City of New York

• March 09, 2014
• by Kimberly Faber
• Associations
• Legislation

In a complaint filed on February 26th, the New York State Professional Process Servers Association (NYSPPSA) took civil action against the City of New York, Michael Bloomberg (Mayor of New York City from 2002-2013), current Mayor Bill de Blasio, and 36 other assorted attorneys and individuals for a number of claims including defamation, anti-trust violations, and a challenge to constitutionality.

Much of what is included in the lawsuit relates to the changes to licensing and regulations within the 5 boroughs of New York City. In what was initially intended as a change to weed out sewer service, the still-evolving terms of process server regulation in New York City has been described by NYSPPSA President Larry Yellon as “arbitrary” and “capricious” using “bully tactics” and “legislation coercion” to created uncertainty and fear within the process serving industry.

The licensing regulations were affected in 2011.

Breakdown of the Lawsuit

According to an article of analysis by DGR Legal, cited within the official complaint are four primary issues:

The 47-page document includes claims under:

• 42 U.S.C. 1983, The New York State Constitution, The New York City Charter, and The New York City Administrative Code
• 18 U.S.C. 1964

and claims of:

• Defamation Per Se Pursuant to New York State Law
• Anti-Trust Violations Pursuation to 15 U.S.C. 15
• Challenging the Constitutionality of Certain NYC Admin Code 20-406 and NYC Rules, Tilt 6, Chapter 2, Subchapter W

Below are a few of the points raised in the document:

• Requiring individual process servers to pass an exam discriminates against individual process server licensees.
• There is no rational basis for the City to require satisfactory completion of the exam in order to obtain licensing and renewal, and it is not a requirement other businesses are subjected to.
• Not allowing individual process servers to disclose the existence of subpoenas presented to them by the defendants involved in the case violates laws ensuring free speech and right to counsel.
• Several references to the violation of due process.
• Instances of excessive fines and suspensions.
• Administrative Law Judges were directed by the defendants, under threats of disciplinary action, to rule in favor of the NYC DCA during adjucational proceedings and to impose maximum fines.

Complete details can be seen in the copy of the official complaint at the end of this article. The case brought by the NYSPPSA is being handled on a contingency basis.

History of Issues for Process Servers in New York City

This is just the latest in a number of issues between the NYSPPSA and the New York City Department of Consumer Affairs, beginning first with major changes in the registration of process servers and, most recently, with the NYSPPSA petitioning for an extension for licensing renewal, with a string of difficulties and disagreements in between.

While the sentiment and opinions of the collective process servers operating within New York City have yet to be scientifically examined, it is not the rare scenario to hear a process server upset over the costs and uncertainty associated with license renewal or even the regulations themselves. Others have shared their decision to sell or close their businesses. According to a report on licensing statistics, 60% of New York City process servers have left the profession since 2011.

The commissioner was to release a report on the effectiveness of the new laws one year after the regulations went into effect, but the NYSPPSA and process servers within the 5 boroughs are still waiting on the report.

As the locale other process servers look to for what future regulations and administrative changes might come their way, we will continue to bring you the latest information as things develop in New York City.