District Attorney of New York County v. Republic of Philippines

681 F. App'x 37
CourtCourt of Appeals for the Second Circuit
DecidedMarch 3, 2016
DocketNo. 16-410
StatusPublished
Cited by2 cases

This text of 681 F. App'x 37 (District Attorney of New York County v. Republic of Philippines) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District Attorney of New York County v. Republic of Philippines, 681 F. App'x 37 (2d Cir. 2016).

Opinion

SUMMARY ORDER

Interpleader defendant-appellant Jose Duran appeals from an order of the United States District Court for the Southern District of New York (Failla, /.), dated January 28, 2016, denying him leave to file a motion to partially vacate a stay of state court proceedings or to enjoin interpleader defendant-intervenor Republic of the Philippines (“the Republic”) from litigating in its home forum. We assume the parties’ familiarity with the underlying facts, the procedural history of the case, and the issues on appeal.

Duran was a victim of torture by the military in the Philippines under the direction of Ferdinand E. Marcos during a time of martial law and has obtained a judgment against the Marcos estate. In December 2012, Duran commenced a Turnover Petition in state court seeking to recover property belonging to Imelda Marcos, a representative of the Marcos estate, in satisfaction of his judgment. Because some of that property had been seized by the New York District Attorney’s Office (“the DA”) during a criminal investigation, Duran named the DA as a party to his petition. Duran then served a writ of execution to levy on two paintings in the DA’s possession. In February 2014, the DA initiated a federal interpleader action to resolve competing ownership claims to the property it had seized.2 The Republic, not a party to Duran’s state court action, waived its sovereign immunity and became a party to the federal interpleader. The federal and state court actions continued in parallel until February 19, 2015, when the district court issued an oral decision staying the state court action. Several months later, on November 5, 2015, Duran requested leave to file a motion to partially vacate that stay or, in the alternative, to enjoin the Republic from pursuing litigation in the Philippines respecting the inter-pleaded property. The district court denied Duran’s request on January 28, 2016. This appeal followed.

I. Appellate Jurisdiction

The Republic argues that we lack jurisdiction to hear this appeal because a stay of state court proceedings pursuant to 28. U.S.C. § 2361, which authorizes a district court to enjoin parties from “prosecuting any [domestic] proceeding ... affecting the property ... involved in [an] interpleader action,” is not an injunction for which interlocutory appeal is available under 28 U.S.C. § 1292(a)(1). We disagree. This Court has repeatedly reviewed anti-suit injunctions issued under 28 U.S.C. § 2361 in an interlocutory posture. See, e.g., Hapag-Lloyd Aktiengesellschaft v. U.S. Oil Trading LLC, 814 F.3d 146, 149-50 & n.10 (2d Cir. 2016); Ashton v. Josephine Bay Paul & C. Michael Paul Found., Inc., 918 F.2d 1065, 1068 (2d Cir. 1990). This is consistent with 28 U.S.C. § 1292(a)(1), which “authorize^] an [interlocutory] appeal only from an injunctive order that gives, or aids in giving, substantive relief sought in the lawsuit in order to preserve the status quo pending trial.” In re Zyprexa Prods. Liab. Litig., 594 F.3d 113, 117 (2d Cir. 2010) (per curiam); see also HBE Leasing Corp. v. Frank, 48 F.3d 623, 632 (2d Cir. 1995) (holding that ap-pealable interlocutory injunctions are “de[40]*40signed to ... protect ... the substantive relief sought by a complaint”). Because the function of an anti-suit injunction in an in rem case such as interpleader is to eliminate “the threat a second action poses to the first court’s basis for jurisdiction,” China Trade & Dev. Corp. v. M.V. Choong Yong, 837 F.2d 33, 36 (2d Cir. 1987), such injunctions are essential to the district court’s ability “to preserve the status quo pending trial,” In re Zyprexa, 594 F.3d at 117, and “protect ... the substantive relief sought by” the parties, Frank, 48 F.3d at 632. Interlocutory appeal of such injunctions is thus permissible.

The Republic next argues that the district court’s January 28, 2016 order was not an order “refusing ... [an] injunction ], or refusing to ... modify [an] injunction],” 28 U.S.C. § 1292(a)(1), because it merely denied Duran leave to file a motion. Although the district court’s order “did not in terms refuse an injunction, it nonetheless had the practical effect of doing so.” Carson v. Am. Brands, Inc., 450 U.S. 79, 83, 101 S.Ct. 993, 67 L.Ed.2d 59 (1981) (internal quotation marks and alterations omitted); see also New York v. Nuclear Regulatory Comm’n, 550 F.2d 745, 758 (2d Cir. 1977) (“[I]t is abundantly clear that the practical, and immediate, effect of the order is the refusal of the injunction sought.”). This technicality thus does not preclude appellate review of the district court January 28, 2016 order.

. II. Subject Matter Jurisdiction of the District Court

Duran argues that the district court lacked subject matter jurisdiction

over the federal interpleader action because the state court obtained prior exclusive jurisdiction over certain interpleaded property. The Republic argues that we do not have appellate jurisdiction over this specific issue because it was not addressed in the January 28, 2016 order appealed from or raised in Duran’s Notice of Appeal. However, “[a]n appellate federal court must satisfy itself not only of its own jurisdiction, but also of that of the lower courts.” Mitchell v. Maurer, 293 U.S. 237, 244, 55 S.Ct. 162, 79 L.Ed. 338 (1934). As a result, “if the district court lacked jurisdiction, we ... have jurisdiction on appeal, not of the merits but merely for the purpose of correcting the error of the lower court in entertaining the suit.” Merritt v. Shuttle, Inc., 187 F.3d 263, 268 (2d Cir. 1999) (internal quotation marks omitted).

Under the doctrine of prior exclusive jurisdiction, a federal court does not assume in rem or quasi in rem jurisdiction if a state court has previously assumed jurisdiction over the same res. See Marshall v. Marshall, 547 U.S. 293, 311, 126 S.Ct. 1735, 164 L.Ed.2d 480 (2006); Princess Lida of Thurn & Taxis v. Thompson, 305 U.S. 456, 466, 59 S.Ct. 275, 83 L.Ed. 285 (1939). Here, the district court ruled that the state court had not assumed prior exclusive jurisdiction over the relevant property.3 “In reviewing a district court’s determination of whether it has subject matter jurisdiction, we review factual findings for clear error and legal conclusions de novo.” Gualandi v. Adams,

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681 F. App'x 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-attorney-of-new-york-county-v-republic-of-philippines-ca2-2016.