Why International Process Service Is So Expensive

( Re-Print of blog from December 2011 with updates)

People ask me all of the time, “Why is international service of process so expensive?”  My answer is simple although it does not resonate well with some attorneys and paralegals. 

Process serving is more expensive in most countries than locally because of 1) security issues, 2) cost of living in the foreign nation, 3)  scarcity of qualified process servers in some areas, 4) currency exchange, 5) fuel costs, 6) travel time, 7) number of attempts required to complete service, 8) expertise of the U.S. firm which is handling the service, 9) belief by foreign process servers that U.S. attorneys can afford to pay more, 10) bank transfer costs to pay foreign process servers, and 11) bribes that are often required in order to obtain permission to perform the service.  Please allow me to explain each reason:

1.       Although the bribery issue may be the most shocking, the primary cause of high costs is security issues associated with serving legal documents in many nations.  For example, it is customary for a process server in other countries to have 2-4 bodyguards with him while making the service. That extra security is not related to actually serving the documents, but rather, to issues such as kidnapping, mugging, and attack by street people.  If you calculate the costs of two to four additional people involved in the service, you quickly see that the costs can be staggering.  Process servers are subjected to threats that are unheard of in most areas of North America and they must take additional precautions to insure their safety.

2.       The cost of living and prevailing rates charged by process servers in many areas of the world explain high costs.  Hong Kong, Singapore and Paris are good examples of cities having an extreme cost of living and process service fees are proportionally higher than in such places as Dublin, Vancouver or Cancun.

3.       Because process serving is not a common task in many countries due to their legal system, there are often no qualified process servers to perform the assignment.  When Process Service Network began serving in foreign countries, we developed a team of private process servers, private investigators, and off-duty law enforcement officers to handle the tasks.  Often, we had to train the person in order to have a qualified agent to handle services. Now, we offer the #1 training program in the world through our own Process Service University. Costs are affected by currency exchange rates in such areas as Europe, especially the UK where the Sterling Pound is strong against the Dollar.  A service that would normally cost $100 in the U.S. would be $200 in the UK, assuming all other factors were equal.

4.       Fuel costs are seriously higher in almost every area of the world compared to the states. In most of Europe gas is over $6.00 per gallon while in Taiwan is often reaches $8.00 per gallon.

5.       Travel time is a major factor in international service of process as it is common for drive time to be several hours to get from one side of a major city to the other.  If you have ever visited Manila, Mexico City, Tokyo, Taipei, Beijing, Paris or Rome you understand.  Service in outlying areas where there are no process servers often require overnight stays and multiple attempts, thus increasing the cost.

6.       Process servers are contracted for completing a service rather than simply making attempts.  Therefore, they set their fees to accommodate having to make numerous attempts at service.  For example, it is common for 10 or more attempts at service be made prior to completing the service.  Since the foreign process server must pay his/her own expenses, their quoted rates are high due to anticipated trips. I recently visited Kauai, Hawaii which is a relatively small island.  It took 1 hour and 50 minutes to travel from one area to another (one way!).  Imagine if it required numerous attempts to complete the service.

7.       Just as an attorney is entitled to significant hourly rates based on their expertise, companies which specialize in international service of process have specific expertise that command a fair market rate.  Fortunately, most reputable process service firms charge a flat rate for the case, not by the hour, or by the number of attempts.

8.       There is a perception among foreign process servers that all U.S. attorneys are rich….too much television.  That opinion leads them to believe that they can gouge American law firms.  In reality, U.S. attorneys face the same fiscal constraints as those in any other country.  Educating the overseas process server is the job of a reputable company that facilitates international service of process on behalf of their clients.

9.       Bank wire fees, and sometimes, Western Union fees lead to increased costs.  Since many foreign process servers require payment, in advance, it is usually necessary to make payment by bank transfer or other methods prior to making the assignment.

10.   The final cost that creates higher rates is the money that must be paid for bribes to get permission from local officials to serve legal documents.  Bribes are a reality and are quite common in most regions of the world – it’s the way things get done.  Process servers are forced to pay “fees” to government officials in order to get law enforcement cooperation and even, in some cases, to avoid prosecution for not paying the bribe.

In summary, things work differently in most parts of the world than in North America.  You may not fully understand that until you visit certain regions and experience the hidden costs that are often associated with conducting business.

The solution to avoiding unknown hidden costs is to employ the services of a reputable process service firm that specializes in international service.  They understand the ins-and-outs of the business and know how to circumvent many of the concealed costs.

For answers to questions you may have about this article, please contact Nelson Tucker, CEO of Process Service Network, LLC, by email at processnet@sbcglobal.net, phone at 1-800-417-7623, or visit the website at www.processnet1.com.