## Facts

- Theary Ngy financed a car through Wells Fargo Bank NA and listed her brother’s Federal Way, Washington address on the loan paperwork because she lived there at the time.
- About two years later, Ngy moved from her brother’s home into an apartment.
- When Ngy could no longer make payments, she contacted Wells Fargo and gave the bank her new address.
- Wells Fargo sent a tow truck to Ngy’s apartment and repossessed the car from that location.
- After the car was sold at auction for less than the outstanding balance, Wells Fargo sued Ngy to collect the deficiency.
- Wells Fargo hired an investigator/process server to locate and serve Ngy, but the investigator did not successfully personally serve her.
- The process server left two copies of the summons and complaint with Ngy’s brother at the Federal Way address and also mailed two copies to Ngy at that same Federal Way address.
- Ngy did not respond, and in 2003 the superior court entered a default judgment against her.
- Wells Fargo later assigned the judgment to JPRD Investments, LLC.
- Ngy learned of the judgment only after JPRD garnished her bank account to collect on it.
- Ngy moved to vacate the default judgment and to quash the garnishment, arguing the court lacked personal jurisdiction because she was never properly served.
- The trial court denied the motion, reasoning that although personal service failed, service by mail to the Federal Way address was sufficient because Ngy still received mail there.
- Ngy appealed.

## Issues

1. Whether Wells Fargo could use service by mail when it had not shown reasonable diligence in attempting personal service on Ngy.
2. If service by mail was available, whether mailing to the brother’s Federal Way address satisfied the requirement that the mailing be sent to Ngy’s “usual mailing address.”

## Decision

- The Court of Appeals reversed the order denying Ngy’s motion to vacate the default judgment and to quash the writ of garnishment.
- The court held Wells Fargo did not show reasonable diligence in attempting personal service and therefore was not entitled to serve Ngy by mail.
- Because service was ineffective, the superior court never obtained personal jurisdiction over Ngy, and the default judgment was void.
- The court awarded Ngy reasonable attorney fees and costs on appeal.
- Having resolved the case on lack of reasonable diligence, the court did not decide whether the Federal Way address was Ngy’s “usual mailing address.”

## Legal Principles

- A Washington court obtains personal jurisdiction over a defendant only through valid service of a summons and complaint.
- Personal service is generally required; alternative methods such as service by mail are allowed only when the plaintiff first makes reasonably diligent efforts to personally serve the defendant and cannot do so.
- “Reasonable diligence” requires efforts that are genuinely aimed at finding and personally serving the defendant, including following up on information that is reasonably available to the plaintiff about the defendant’s whereabouts.
- When a plaintiff uses service by mail without first meeting the reasonable-diligence requirement, service is invalid even if the defendant might receive some mail at the address used.
- A default judgment entered without personal jurisdiction is void and must be vacated upon a proper motion; collection steps based on a void judgment, including garnishment, cannot stand.

## Conclusion

Because Wells Fargo had information pointing to Ngy’s then-current location (including the address where it repossessed the car) yet did not establish reasonably diligent attempts at personal service before turning to service by mail at her brother’s address, service was invalid, the court lacked personal jurisdiction, and the default judgment and resulting garnishment had to be set aside.


Wells Fargo Bank NA v. Ngy, No. 67240-1-1 (2012)