Bator v. Hungarian Commercial Bank of Pest

194 Misc. 232, 87 N.Y.S.2d 700, 1949 N.Y. Misc. LEXIS 1983
CourtNew York Supreme Court
DecidedFebruary 16, 1949
StatusPublished
Cited by3 cases

This text of 194 Misc. 232 (Bator v. Hungarian Commercial Bank of Pest) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bator v. Hungarian Commercial Bank of Pest, 194 Misc. 232, 87 N.Y.S.2d 700, 1949 N.Y. Misc. LEXIS 1983 (N.Y. Super. Ct. 1949).

Opinion

Pecora, J.

This is a motion by defendant, under sections 288, 292, 301 and 302 of the Civil Practice Act, for an order directing the issuance of a commission to take the testimony, upon written interrogatories, of four witnesses in the city of Budapest, Hungary.

The action is brought to recover for an alleged breach of a contract of employment made on December 30,1938, under which plaintiff — then a citizen of Hungary, but now a citizen of this country — was engaged as general counsel for the defendant. The defendant is a banking institution in Hungary. It maintains no office or place of business here. Jurisdiction was obtained, however, by a warrant of attachment.

Subsequent to the commencement of this action, a second suit was brought in this court by plaintiff against the bank, based upon an alleged further breach of the same contract. The testimony now desired to be taken by the defendant would be of avail to it in both actions. The total amount involved in the two actions is about $100,000.

It appears that the defendant bank at present is either under the virtual control of the Hungarian G-overnment or is in process of nationalization.

In opposing this motion, plaintiff urges that Hungary lies behind the Iron Curtain of communistic totalitarianism; that any witnesses testifying upon Hungarian soil for the defendant bank would be unlikely to tell the truth for reasons of personal safety, if the truth should jeopardize the interests of the bank; and that if their testimony were taken upon written interrogatories instead of oral questions, the plaintiff would have no opportunity effectively to attack the credibility of the witnesses by the usual tests of oral cross-examination.

On the other hand, counsel for the bank maintain that peaceful relations exist between the Governments of the United States and of Hungary; that this court should not pass judgment upon the propriety of the acts of the Government of Hungary, as that is a political question beyond the scope of this court to examine or take into account; and that this court should not assume — especially in the absence of proof — that the Hungarian Government would seek to apply any pressure upon the proposed witnesses to testify falsely in order to promote the interests of the bank.

Unfortunately for the defendant’s contention, the court is not without evidence as to what the Hungarian Government might undertake to do to protect the bank which it controls, from the plaintiff’s claim.

[234]*234While the record before the court on the instant motion may not speak conclusively on that subject, the fact remains that since the submission of the motion, a vivid light has been cast upon some of the judicial processes now prevailing in Hungary, especially where the immediate interests of its Government are involved. The picture presented by the very recent trial there of Cardinal Mindszenty is at once frightening and sickening. Utterly devoid of elementary standards of fairness and decency, it has shocked lovers of truth and justice everywhere. Even the highest officers of our Government — mindful as they must have been of the diplomatic amenities between nations at peace — were moved to denounce those processes publicly as “ infamous “ wanton ” and “ horrifying.”

Should this court shut its eyes to a spectacle which has evoked righteous condemnation from every people who are free from the restraints of a terror-inspiring police State? Most certainly not. In rendering justice, courts should always strive to be objective. In evaluating a factual situation, they should consider conditions as they are, not as they ought to be. Their judicial pronouncements should harmonize realism with legalism.

Upon an application of this nature, the court has discretionary power to determine whether the testimony of witnesses outside the State shall be taken under open commission on oral examination, rather than upon written interrogatories. The reasons underlying this rule are tersely and admirably stated in Deery v. Byrne (120 App. Div. 6, 8 [1st Dept.]) as follows: “ When it becomes necessary to take the testimony of a witness without the state, it is apparent that the class of commission to be issued must rest in judicial discretion to be exercised according to the particular facts presented. There is less likelihood that a witness will testify falsely if examined orally than if examined on written interrogatories, and if he should it is more likely that a cross-examination orally will be effective than if it be confined to written interrogatories.”

An even fuller discussion of the rule is to be found in the case of Frounfelker v. Delaware, Lackawanna & Western R. R. Co. (81 App. Div. 67 [1st Dept.]).

Under the circumstances which have been pointed out, it is my opinion that justice imperatively requires that defendant’s proposed witnesses be orally examined before an American Consular officer in Budapest rather than upon settled or written interrogatories.

Such an examination will inevitably necessitate the attendance of counsel for both parties, and perhaps of the plaintiff himself. [235]*235The question now arises as to who should pay the expenses therefor.

Under the provisions of section 294 of the Civil Practice Act, the court may prescribe the terms and conditions under which a deposition may be taken. In the case of Cole v. Manufacturers Trust Co. (253 App. Div. 749) the court said: Where an oral examination outside the State is ordered, the court, in the exercise of discretion, may require either party to pay the expenses of his adversary, but in the absence of unusual circumstances the policy of the courts has been to require the moving party to pay the expenses of the examination.” (See, also, Gould v. Gould, 243 App. Div. 589.)

As already noted, the moving party here is the defendant, which prays for the examination of its witnesses upon written interrogatories. The plaintiff, however, asks that if the court should order the taking of the testimony in Hungary by deposition, it be elicited upon oral examination.

The testimony of the proposed witnesses is desired by the defendant, presumably for its benefit in resisting plaintiff’s claim. The plaintiff is in no way responsible for the existence of the circumstances — already adverted to — which make it necessary to take the testimony by oral examination. It is only just and equitable that such examination should be at the defendant’s expense. Therefore, as a condition to the issuance of the open commission to take the testimony of the defendant’s witnesses in Hungary, the defendant will be required, within ten days from the service upon it of a copy of the order to be entered hereon, with notice of entry, to pay to plaintiff the sum of $3,500, which shall cover the fees of his counsel for attending the examination and expenses in traveling to and from the place of examination.

In pressing defendant’s motion, its learned counsel vehemently argued that this court should give no heed to plaintiff’s protestations concerning the conditions within Hungary. They assert that our courts are not competent “ to pass upon or re-examine the conduct of another sovereign government.” To support their position they cite such cases as Holzer v. Deutsche Reichsbahn-Gesellschaft (277 N. Y. 474) in which the Court of Appeals said (p. 479): “ Within its own territory every government is supreme (United States v. Belmont,

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Related

Jaffe v. Jaffe
9 Misc. 2d 665 (New York Supreme Court, 1957)
Bator v. Hungarian Commercial Bank of Pest
275 A.D.2d 826 (Appellate Division of the Supreme Court of New York, 1949)
Bator v. Hungarian Commercial Bank of Pest
196 Misc. 157 (New York Supreme Court, 1949)

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Bluebook (online)
194 Misc. 232, 87 N.Y.S.2d 700, 1949 N.Y. Misc. LEXIS 1983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bator-v-hungarian-commercial-bank-of-pest-nysupct-1949.