Gordon v. Hunt

116 F.R.D. 313, 8 Fed. R. Serv. 3d 512, 1987 U.S. Dist. LEXIS 5433
CourtDistrict Court, S.D. New York
DecidedJune 22, 1987
DocketNos. 82 Civ. 1318 (MEL), 84 Civ. 7934 (MEL)
StatusPublished
Cited by43 cases

This text of 116 F.R.D. 313 (Gordon v. Hunt) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Hunt, 116 F.R.D. 313, 8 Fed. R. Serv. 3d 512, 1987 U.S. Dist. LEXIS 5433 (S.D.N.Y. 1987).

Opinion

LASKER, District Judge.

Mahmoud Fustok is named as a defendant in Gordon v. Hunt, 82 Civ. 1318 (MEL) and Korwek v. Hunt, 84 Civ. 7934 (MEL), two related actions which concern the alleged manipulation of the silver and silver futures market in 1979. Fustok moves to dismiss both actions as to him without prejudice for untimely service under Fed.R.Civ.P. 4(j). Rule 4(j), which was added to [315]*315Rule 4 by statute in 1983, provides that service of the summons and complaint must be made upon a defendant within 120 days after the filing of the complaint, unless “good cause” can be shown for the failure to serve within that time. Gordon was filed on March 4, 1982. Korwek was filed on November 2, 1984. Fustok alleges that he was not served in either Gordon or Korwek until December 15, 1986.

Plaintiffs respond (1) that Fustok was timely served in Gordon in 1982 by mail pursuant to Fed.R.Civ.P. 4(i)(1)(D); (2) that there was good cause for untimely service in both actions (if untimely service is found in Gordon) because a) Fustok evaded service and b) plaintiffs made numerous diligent and good faith efforts to effect timely service on Fustok; and (3) that Fustok has waived his right to object to service. Fustok’s motions to dismiss both actions as to him are granted.

Facts

A) Fustok’s Presence in the United States

Fustok is a domiciliary of Saudi Arabia who maintains a business office in London, England. He alleges that since at least 1981 he has regularly visited the United States.1 He states specifically that 1) he has spent the winter each year since at least 1981 in an apartment which he owns in Fort Lauderdale, Florida; 2) he has attended the annual thoroughbred sales in Keeneland, Kentucky each July since at least 1981; 3) he owned a house in Mutton-town, New York “[ujntil a year or so ago,” which he “visited briefly once or twice a year;” 2 and 4) he visited New York City on several occasions in connection with litigation in cases related to the present action, and attended each day the trial before this court of Fustok v. ContiCommodity Ser vices, Inc., 82 Civ. 1538(MEL), which began on February 18, 1986 and ended on March 17, 1986.

B) Plaintiffs Attempts to Serve Fustok in Gordon

The Gordon plaintiffs first made attempts to serve Fustok by mail at his London office pursuant to Rule 4(i)(l)(D). On May 28, 1982 and on September 13, 1982, the Clerk of the United States District Court for the Southern District of New York, at the Gordon plaintiffs’ direction, mailed the Gordon summons and complaint to 98 Baker Street in London, England, which is Fustok's London business address. These mailings were made by registered mail, return receipt requested.3 In neither case was a return receipt or other acknowledgment ever received by the Clerk of Court from these mailings. Kamal Moukarzel, who describes himself as Fustok’s “personal accountant,” and who “maintain[s] an office at ... 98 Baker Street, London ..., where Mr. Fustok also maintains an office,”4 has submitted an affidavit stating that

[n]o mail containing summonses, complaints or amended complaints in either the Gordon case or the Korwek case were ever received at the 98 Baker Street office. If such mail had been received, I would have known about it since there are only four or five people who work in this office and one of them would have been brought [sic] such mail to my attention.5

Fustok himself states that he “never received and never saw a summons or complaint or amended complaint in either the [316]*316Gordon case or the Korwek case until ... December 15, 1986.”6

Second, in “late 1983 or early 1984” the Gordon plaintiffs attempted to serve Fustok at a horse farm in Louisville, Kentucky, in which Fustok allegedly had an interest, but the Louisville sheriff informed plaintiffs’ counsel “that Fustok was not at the farm and therefore, service could not be effected.”7

Third, plaintiffs allege that they attempted to serve Fustok at a house in Mutton-town, New York in which Fustok was alleged to have an interest. However, the process server hired to make service reported that “the estate was gated off and he could not get access and no one would answer his ring from the gate.”8

Finally, plaintiffs’ counsel states that while he “learned that Fustok attended the races in Florida in the winter ... [he] was not able to ascertain an address for him there.”9

C) Plaintiffs’ Attempts to Serve Fustok in Both Gordon and Korwek

After the Korwek action was filed on November 2, 1984, the Korwek plaintiffs did not attempt to serve Fustok by mail under Rule 4(i)(l)(D), because plaintiffs’ counsel “considered it to be a useless act in view of the fact that [he] had twice caused service to be mailed in Gordon with no response.”10 However, plaintiffs’ counsel did make several other attempts to serve Fustok in both Gordon and Korwek, after Korwek was filed.

First, plaintiffs attempted to serve Fustok in both Gordon and Korwek when Fustok was in New York for the trial before this court of Fustok v. ContiCommodity Services, Inc. in February-March, 1986. Plaintiffs claim that they were advised by a courthouse security guard that “service was not permitted in the Courthouse under any circumstances, but that once Fustok was on the sidewalk outside service was proper.”11 Plaintiffs, however, have presented no evidence that such a rule prohibiting service within the courthouse actually exists, and no such rule has ever come to the court’s attention. Plaintiffs also state that Fustok could never be found entering or exiting the courthouse during the month-long trial, and that he prevented them from finding him because when he left the courtroom he “would exit through a door, surrounded by his employees and bolt down the stairs.” 12 Fustok, however, disputes this description .of his behavior. He states that during the course of the trial he entered and left the courthouse daily through the front door of the courthouse, using the elevators to reach and leave the courtroom. He also states that he often had lunch in the courthouse cafeteria,13 and there is no dispute that he did indeed lunch there on more than one occasion.

Second, on September 23, 1986 plaintiffs’ counsel sent the process in Gordon and Korwek to the Senior Master of the Supreme Court of Judicature in the Royal Courts of Justice in London for service on Fustok at his London business office. However, on October 20, 1986, counsel was informed that the Senior Master could not serve Fustok at that address because he had been informed that “Mr. Fustok is only an occasional visitor to the address, and that his last visit was in June this year.” 14

Finally on December 15, 1986, over four years after the Gordon

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Cite This Page — Counsel Stack

Bluebook (online)
116 F.R.D. 313, 8 Fed. R. Serv. 3d 512, 1987 U.S. Dist. LEXIS 5433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-hunt-nysd-1987.