Dellwood Foods, Inc. v. Abrams

109 Misc. 2d 263, 439 N.Y.S.2d 1008, 1981 N.Y. Misc. LEXIS 2387
CourtNew York Supreme Court
DecidedJune 10, 1981
StatusPublished
Cited by3 cases

This text of 109 Misc. 2d 263 (Dellwood Foods, Inc. v. Abrams) 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
Dellwood Foods, Inc. v. Abrams, 109 Misc. 2d 263, 439 N.Y.S.2d 1008, 1981 N.Y. Misc. LEXIS 2387 (N.Y. Super. Ct. 1981).

Opinion

OPINION OF THE COURT

Lawrence J. Tonetti, J.

Dellwood Foods, Inc. (Dellwood), has been indicted (Bronx County Indictment No. 976/81) for violation of sections 340 and 341 of the General Business Law (the Donnelly Act). It is alleged that Dellwood, along with other indicted corporations, individuals and unindicted cocon- . spirators, combined in restraint of trade and competition. Subsequent to the filing of this indictment (March 27, [264]*2641981) the Attorney-General issued subpoenas pursuant to his investigatory powers under section 343 of the General Business Law commanding the appearance of three of Dellwood’s sales personnel. Dellwood now moves to quash these subpoenas pursuant to CPLR 2304, maintaining that the issuance of postindictment subpoenas is an abuse of process. This court has read the Grand Jury minutes, taken an in camera offer of proof as to the purpose of the subpoenas from the Attorney-General, and has had the benefit of excellent legal briefs and oral argument furnished by counsel, and decides this motion as follows.

Preliminarily, it must be decided if a corporation has standing to move to quash a subpoena directed not to the corporation itself, but its employees. It must be noted that none of the subpoenaed individuals has given any indication that they wish to resist compliance.

It cannot be disputed that a criminal defendant may not vicariously assert the abridgement of another’s personal right and then seek the remedial benefits the law provides for such violation (see on Fourth Amendment violations, United States v Miller, 425 US 435; Rakas v Illinois, 439 US 128; United States v Salvucci, 448 US 83; Rawlings v Kentucky, 448 US 98; United States v Payner, 477 US 727; and on Fifth Amendment violation, Bellis v United States, 417 US 85; Couch v United States, 409 US 322). This body of case law concerns the proper application of the exclusionary rule in instances where it is not the defendant whose rights have been violated.

Yet, on the instant facts these cases are not dispositive for here petitioner maintains that it is, in fact, a violation of Dellwood’s rights that is being asserted. In Rakas v Illinois (supra, p 139) the Supreme Court recognized that the rule it fashioned for Fourth Amendment violations wás more restrictive than that generally employed in determining standing: “It should be emphasized that nothing we say here casts the least doubt on cases which recognize that, as a general proposition, the issue of standing involves two inquiries: first, whether the proponent of a particular legal right has alleged ‘injury in fact,’ and second, whether the proponent is asserting his own legal [265]*265rights and interests rather than basing his claim for relief upon the rights of third parties.”

The principal application of this “general proposition” has been to determine the standing of an individual to bring a lawsuit or attack the constitutionality of a statute (see Singleton v Wulff, 428 US 106; Griswold v Connecticut, 381 US 479; Eisenstadt v Baird, 405 US 438; Barrows v Jackson, 346 US 249; Doe v Bolton, 410 US 179). However, logic indicates that application here would be appropriate.

Dellwood here alleges that as an indicted defendant its rights are being invaded by the further issuance of subpoenas, whose purpose is the gathering of evidence for the pending trial. There can be no doubt that the issuance of postindictment subpoenas, whose sole or predominant purpose is to gather evidence for a pending trial, is an abuse of process (Matter of Hynes v Lerner, 44 NY2d 329; United States v Dardi, 330 F2d 316; United States v Fahey, 510 F2d 302; United States v Fisher, 455 F2d 1101; United States v Star, 470 F2d 1214). Therefore, Dellwood does allege an “injury in fact” in that if the subpoenas were issued for the purpose it suggests, Dellwood’s right to a fair trial would be affected.

This court also concludes that Dellwood’s claim for relief is based on an assertion of its own rights. The subpoenaed salespeople here would have no interest in protecting Dellwood from abuse of process. In fact the potential for an immunity grant may make their interest diametrically opposed to those of Dellwood.

In such a situation, it is only the indicted party who has an interest to be protected. In this regard the logic of the Third Circuit in United States v Genser (582 F2d 292) is instructive. The case involved continued issuance of Internal Revenue Service summonses to third parties after a tax investigation became purely criminal. Preceding decisions by Supreme Court had indicated that the Internal Revenue Service had Federal statutory authority to issue such summonses until the investigation became purely criminal and had defined the purely criminal stage as commencing when the investigation was referred to the Department of Justice (Reisman v Caplin, 375 US 440; Donaldson v [266]*266United States, 400 US 517; United States v LaSalle Nat. Bank, 437 US 298). The Genser court stated (supra, pp 305-306):. “In the instant case, however, appellants’ standing to challenge administrative summonses derives not from the Fourth Amendment, but rather from a federal statute, § 7602, and from the gloss placed upon that statute by the federal courts. We think that in consistently holding that the IRS may not use administrative summonses to gather evidence in an exclusively criminal investigation, the courts from Reisman and Donaldson onward, up to and including LaSalle, have identified a protectable interest in the taxpayer not to be the target of an exclusively criminal investigation in which government agents have acted beyond their statutory authority *** While the third party recipients of summonses may well be motivated to refuse to comply on the grounds that the summonses are overbroad or unreasonably burdensome *** there is little reason to expect them to raise the defense that the summonses were issued to further a solely criminal investigation of the taxpayer * * * This is not a matter of the third party bank’s interest, but of the taxpayer’s. Thus, the courts have provided that the taxpayer may challenge the validity of a summons issued to a third party either at the investigatory stage or, if necessary, at the trial level.”

While the Third Circuit obviously is construing an entirely different statute than that here involved, the parallels are equally obvious. As Dellwood has been indicted, it too should be afforded a “Protectable interest” in preventing government agents from exceeding their statutory authority. Further, this interest is uniquely Dellwood’s as none of the subpoenaed witnesses would have reason to raise the defense here asserted. In addition, the Federal courts have granted standing in cases involving the abuse óf Grand Jury process (United States v Doe, 455 F2d 1270; Matter of Grand Jury Proceedings, 632 F2d 1033).

Authority for a standing grant may also be found under the particular statute pursuant to which this motion is brought. The Practice Commentaries under CPLR 2304 state as follows: “The motion to quash may be made in behalf of the witness (who if not a party will usually not have his own attorney to represent him) by one of the [267]

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Bluebook (online)
109 Misc. 2d 263, 439 N.Y.S.2d 1008, 1981 N.Y. Misc. LEXIS 2387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dellwood-foods-inc-v-abrams-nysupct-1981.