Klingerit, Inc. v. United States

9 Cust. Ct. 648, 1942 Cust. Ct. LEXIS 1372
CourtUnited States Customs Court
DecidedOctober 14, 1942
DocketNo. 5734; Entry No. 77503, etc.
StatusPublished
Cited by1 cases

This text of 9 Cust. Ct. 648 (Klingerit, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klingerit, Inc. v. United States, 9 Cust. Ct. 648, 1942 Cust. Ct. LEXIS 1372 (cusc 1942).

Opinion

Walkeh, Judge:

This cause comes before the court on a motion to quash a subpoena duces tecum issued by order of the court directing-Paul P. Rao, Assistant Attorney General of the United States in charge of customs litigation, as such officer to appear before the court and produce certain documents in his possession. The facts leading-up to the issuance of such subpoena are as follows:

The merchandise involved, consists, of certain asbestos goods imported from Austria in the year 1937 and before that country was taken over by Germany. Entry was made by adding certain amounts, to the invoice value to represent the foreign-market value, but on appraisement further additions were made by the appraiser. Appeals to reappraisement were duly filed by the importer, and on March 9, 1942, the case came on for trial before me.

During the course of the trial, counsel for the plaintiff called to the-stand Henry H. Crum, who, at the time of giving his testimony was an assistant appraiser at the port of New York, but who had, in the capacity of examiner of merchandise, passed the merchandise in question and made an advisory return to the appraiser, which, being-approved, became the appraisement herein. Mr. Crum was asked by plaintiff’s counsel:

Will you state in making your appraisement, whether it was based upon information you received from abroad in the form of a Special Agent’s report?

and over objection by counsel for the defendant, which I overruled, he answered, “Yes, several reports.” The following then occurred!

Q. Have you that report with you? — A. I haven’t the reports here with me, no.
Q. Do you know where it is? — A. I presume the attorney has it.
Mr. Levett. I will ask the attorney to produce that report so I may offer it in evidence.
Mr. Austeb. The Government will refuse to offer it to Counsel.
Mr. Levett. I would ask Your Honor to subpqena the report, It is here, and I would like to see it. The refusal of the Attorney, his refusal to produce that I think is the subject of a very grave question of ethics. The Government is here to find the truth. If they have the truth in that report, we are entitled to it.
Judge Walkeb. What is your objection to producing it?
Mr. Austeb. My objection is, that this Attorney has to prove his case, he has the laboring oar; he has the burden of proof, and he cannot’ come into court and ask the Government “What have you got? Give it to me and I will prove my case.” Moreover if he wants them he can get them by serving subpoenas upon the Commissioner of Customs, or the Secretary of the Treasury, not upon Counsel. When these reports are in Counsel’s possession, they are privileged communications between attorney and client.
Judge Walkeb. Of course you can delay the proceeding, in order to give the opportunity to the importer to get that information.
Mr. Austeb. No, I have my grave doubts about that, in any event. There happens to be a motion before the Presiding Judge in a case, where a subpoena was served on our office, and upon the examiner, and the examiner as I under[650]*650stand took it up with his superior here, the Appraiser, who communicated with the Secretary of the Treasury. What the result of that motion is going to be, I do not know. I can give your Honor the case it is 139055-A. the ease of Arthur H. Lehmann Co., Incorporated, vs. United States. The motion was made 'to quash in that case.
Mr. Levett. I can speak from my experience that it has been uniformly held where the report is here, the Government must produce it.
Mr.- Auster. Let me have a citation.
Mr. Levett. In a case before Judge Fischer, with Mr. Strauss, I cannot recall the case.
Judge Walker. It is my information it is admissible if properly called into evidence, and if you wish to delay the proceedings Mr. Auster, that is all right. I think I will insist the document be presented, if a subpoena duces tecum or whatever it may be that is necessary, is submitted.
Mr. Auster. I will object to his request at this stage of the proceedings. I desire that Your Honor understand my position. I am not saying that I may not offer it of my own volition, but I do oppose this manner or means of obtaining it, and I am not going to be a party to it. I may decide to offer it myself, after I see how far, how much of a case he has, but I am not going to prove his case for him. That is up to him.
Judge Walker. He is proving it, or endeavoring to prove it. I will give you the opportunity to get the record by a proper subpoena. It may delay the hearing, but I will give you the opportunity because I think it is quite proper.
Mr. Auster. I will ask Your Honor not to make a hasty decision on this question, because I am convinced when Your Honor studies the law, you, Your Honor will agree with me, that he is not entitled to it.
Judge Walker. I will have to change my mind, because I am convinced now.
Mr. Levett. I regret the delay, but of course if Your Honor rules.
[R. pp. 13-16]

It will be noted from the foregoing that the attorney for the Government, who, it appears, had the documents in question in his physical possession at the time of trial, was originally asked to produce them. This, of course, did not have to be obeyed, the only penalty for failure to comply with the request being the opportunity on the part of the plaintiff to offer secondary evidence of the contents of the reports, which he was in no position to do.

Subsequently, and on April 7, 1942, upon application therefor by counsel for the plaintiff, I directed the issuance of two subpoenas duces tecum, one addressed to Hon. Paul P. Rao, Assistant Attorney General of the United States, and the other addressed to Charles B. Webb, Director of the Customs Information Exchange, requiring their presence at a hearing to be held before me on April 13, 1942, and the production of certain special agents’ reports or copies thereof in relation to the merchandise at bar.

On April 10, 1942, a motion was made by Assistant Attorney General Rao to quash the subpoena duces tecum served upon him, seven reasons in support of the motion being advanced in a memorandum filed in connection with the motion.

These reasons may be summarized into four, as follows:

[651]*651(1) To compel the defendant to produce the reports ar this time would contravene the regular order of proof by forcing the defendant to submit his proof in advance of the establishment by the plaintiff of a prima facie case.

(2) Since the appraiser is empowered by the statute to appraise imported merchandise

* * * by ascertaining or estimating the value thereof by all reasonable ways and means in his power, any statement of cost or cost of production in any invoice, affidavit, declaration or other document to the contrary notwithstanding * * *.

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Related

In re the Adjudication of the Guilt of Spector
42 Cust. Ct. 726 (U.S. Customs Court, 1959)

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Bluebook (online)
9 Cust. Ct. 648, 1942 Cust. Ct. LEXIS 1372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klingerit-inc-v-united-states-cusc-1942.