Malev Hungarian Airlines v. United Technologies International Inc.

964 F.2d 97
CourtCourt of Appeals for the Second Circuit
DecidedMay 5, 1992
DocketNo. 665, Docket 91-7949
StatusPublished
Cited by6 cases

This text of 964 F.2d 97 (Malev Hungarian Airlines v. United Technologies International Inc.) 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.

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Malev Hungarian Airlines v. United Technologies International Inc., 964 F.2d 97 (2d Cir. 1992).

Opinions

OAKES, Chief Judge:

Malev Hungarian Airlines (“Malev”) appeals from an order entered in the United States District Court for the District of Connecticut on September 30, 1991, T. Em-met Clarie, Judge, denying Malev’s request to take discovery from United Technologies International, Inc., Pratt & Whitney Commercial Engine Business (“Pratt & Whitney”), pursuant to 28 U.S.C. § 1782 (1988), for use in proceedings before a Hungarian court. Because the district court relied on improper factors in denying Malev’s discovery request, we reverse and remand.

I.

On July 23, 1991, Pratt & Whitney, an airplane engine manufacturer, filed a complaint in the Municipal Court of Budapest, Hungary against Malev, the Hungarian national airline. In the complaint, Pratt & Whitney seeks specific performance of an alleged multi-million dollar December 1990 agreement by Malev to purchase a number of PW4000 jet engines from Pratt & Whitney in connection with the modernization of Malev’s fleet of aircraft.

On September 16, 1991, four days after Malev filed its answer in the Hungarian court, Malev initiated this action in the United States District Court for the District of Connecticut. Malev requested that the district court enter an order pursuant to 28 U.S.C. § 1782 permitting discovery of Pratt & Whitney by Malev in the United States. In particular, Malev seeks to de[99]*99pose a number of individuals located in Connecticut who hold various positions with Pratt & Whitney and to obtain eighteen groups of documents purportedly relevant to the litigation in Hungary.

On July 30, 1991, following a hearing on the matter, the district court entered an order denying Malev’s request for discovery under 28 U.S.C. § 1782.

We review the district court’s decision to deny Malev’s request for assistance for an abuse of discretion. See Lo Ka Chun v. Lo To, 858 F.2d 1564, 1565-66 (11th Cir. 1988); In re Request for Judicial Assistance from the Seoul District Criminal Court, Seoul, Korea, 555 F.2d 720, 723-24 (9th Cir.1977).

II.

A.

The genesis of 28 U.S.C. § 1782 (1988)1 sheds light on the policy aims which Congress sought to effectuate by enacting the legislation. In 1958, Congress created the Commission on International Rules of Judicial Procedure and instructed it to “investigate and study existing practices of judicial assistance and cooperation between the United States and foreign countries with a view to achieving improvements.” Pub.L. No. 85-906, 72 Stat. 1743 (1958). The Commission was further told to use that investigation and study as a basis upon which to “draft and recommend to the President any necessary legislation” to render “more readily ascertainable, efficient, economical, and expeditious” the “procedures of our State and Federal tribunals for the rendering of assistance to foreign courts and quasi-judicial agencies.” Id.

On May 28, 1963, the Commission transmitted a proposed bill to the Speaker of the House of Representatives and the President of the Senate, following approval by the Administration, which included a provision to amend 28 U.S.C. § 1782 to its current version. In the transmittal letter, which the Senate Judiciary Committee included in its report on the bill, the Chairman of the Commission explained its hope that enactment of the proposed legislation would provide efficient means of assistance in our federal courts for litigants involved in international litigation and would prompt foreign courts to follow our generous example and provide similar assistance to our court systems. S.Rep. No. 1580, 88th Cong., 2d Sess. (1964), reprinted in 1964 U.S.C.C.A.N. 3782, 3792-94;2 see also In re Letter Rogatory from the Justice Court, Dist. of Montreal, Canada, 523 F.2d 562, 564-66 (6th Cir. 1975).

The Senate Judiciary Committee agreed with the Commission’s understanding of the intent behind the legislation and explained in its report:

Until recently, the United States has not engaged itself fully in efforts to improve practices of international cooperation in litigation. The steadily growing involvement of the United States in international intercourse and the resulting increase in litigation with international aspects have demonstrated the necessity for statutory improvements and other devices to facilitate the conduct of such litigation. Enactment of the bill into law will constitute a major step in bringing the United [100]*100States to the forefront of nations adjusting their procedures to those of sister nations and thereby providing equitable and efficacious procedures for the benefit of tribunals and litigants involved in litigation with international aspects.
It is hoped that the initiative taken by the United States in improving its procedures will invite foreign countries similarly to adjust their procedures.

Id. at 3783; see also Hans Smit, International Litigation Under the United States Code, 65 Colum.L.Rev. 1015, 1017-19 (1965) (author, who was Reporter of the Commission on International Rules of Judicial Procedure, explaining his view of the purposes behind the legislation in virtually identical terms).

These twin aims of providing efficient means of assistance to participants in international litigation in our federal courts and encouraging foreign countries by example to provide similar means of assistance to our courts must inform our analysis of whether the district court abused its discretion by denying Malev’s request for assistance in the pending litigation before the Hungarian court. To that task, we now turn.

B.

In denying Malev’s request for discovery, the district court found that Malev’s request was “premature and unnecessary” because Malev “never made a formal discovery request upon Pratt & Whitney before the Hungarian court.” The district court concluded that discovery procedures are “fully available” to litigants in Hungary and that Malev should have first sought the requested discovery from the Hungarian court.

We find nothing in the text of 28 U.S.C. § 1782 which would support a quasi-exhaustion requirement of the sort imposed by the district court. To the contrary, the plain language of 28 U.S.C. § 1782

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