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July 14, 2011

When a Registered Agent Refuses to be Served

When a company does business in Colorado it is required to have register agent to receive service.  Service is the legal notice that is required for a court to bring an entity into a lawsuit.  As such, every domestic entity that transacts business in the state of Colorado “shall continuously maintain in this state a register agent…”  C.R.S. § 7-90-701. The purpose of the statute is to provide means of providing due process notice to an entity of a pending legal action. C.R.S. § 7-90-704(1).

Unfortunately, some business believe that they can avoid law suits by making it difficult or impossible to contact their registered agent.  Often they list the wrong address with the Secretary or State or hide from process servers.  This kind of behavior denies a party the opportunity to bring the entity before a court and escape legal liability yet to still transact business in Colorado.

Luckily, C.R.S. § 7-90-704(2) provides for service on an entity by alternative means when an entity’s register agent cannot be served or found.

“If an entity that is required to maintain a registered agent pursuant to this part 7 has no registered agent, or if the registered agent is not located under its registered agent name at its registered agent address, or if the registered agent cannot with reasonable diligence be served, the entity may be served by registered mail or by certified mail, return receipt requested, addressed to the entity at its principal address. Service is perfected under this subsection (2) at the earliest of:

(a) The date the entity receives the process, notice, or demand;

(b) The date shown on the return receipt, if signed on behalf of the entity; or

(c) Five days after mailing.”

Thus,  a party can start their case by sending service by certified mail and get their case before a court and thwart registered agents attempting to avoid service.

Jake Eppler

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