You don't have to tell the process server anything. The process server has to serve your daughter personally. While there is such a thing as constructive service, that is achieved by serving someone 18 years old or older who resides in the same house as your daughter. Your daughter doesn't reside with you? Too bad so sad. Let the process server find her without your help. Good luck!
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Yes you should tell the process server your daughter no longer resides at your address, especially if you don't want process servers showing up at your house at all hours trying to serve your daughter.
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I would tell them. You are not obligated to tell them where she is (unless subpoenaed). I would look online for info on the case. Sometimes it pays to be proactive.
There is no substitute for the professional advice of an attorney who knows your case and represents you. My post is not, and may not be relied on as, legal advice and does not create an attorney-client relationship. Best wishes for a just and expeditious resolution.