The court considered plaintiff's challenge to a trial court order vacating a final judgment by default in a tax sale foreclosure. Plaintiff obtained a final judgment by default on its tax sale lien and defendants timely moved to vacate the order, alleging defective service of process. The trial court found sufficient defects with process to warrant vacating the final judgment, which reopened the redemption period and allowed defendant to redeem.
The court affirmed, concluding service of process was defective pursuant to both the general court rules governing personal service, as well as the RULLCA-specific statute governing service of process on LLCs, N.J.S.A. 42:2C-17. The court noted the differences between service rules in RULLCA and the Business Corporations Act (BCA), N.J.S.A. 14A:1-1 to: 18-11, in finding plaintiff's waiver argument unavailing. Although RULLCA and the BCA contain some similarities, the rules governing service are distinct and materially different. Service upon a corporation in New Jersey is governed by Rule 4:4-4(a)(6) and N.J.S.A. 14A:4-2, whereas service upon an LLC is governed by Rule 4:4-4(a)(5), and RULLCA, N.J.S.A. 42:2C-17.
The RULLCA service of process provision contains an additional method of service lacking in the BCA, providing, as a permissive alternative, that where personal service in accordance with the court rules fails despite reasonably diligent efforts, service may be made upon the State filing office. N.J.S.A. 42:2C-17(b). The BCA service of process provisions do not authorize the State to accept process as an agent of a corporation. R. 4:4-4(a)(6); N.J.S.A. 14A:4-2.
Because final judgment was vacated, the court followed Green Knight Cap., LLC v. Calderon, 252 N.J. 265 (2022), in holding the period of redemption reopened and continued until barred by a valid final judgment of the Superior Court. The court interpreted the holding in Green Knight, in conjunction with Rule 4:64-6(b) and the tax sale law, N.J.S.A. 54:5-86(a), to mean the redemption period reopens when a final judgment in foreclosure is timely vacated.
