McKesson Corp. v. Islamic Republic of Iran

185 F.R.D. 70, 1999 U.S. Dist. LEXIS 12668, 1999 WL 164348
CourtDistrict Court, District of Columbia
DecidedMarch 17, 1999
DocketNo. Civ.A. 98-00220(TAF)
StatusPublished
Cited by28 cases

This text of 185 F.R.D. 70 (McKesson Corp. v. Islamic Republic of Iran) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKesson Corp. v. Islamic Republic of Iran, 185 F.R.D. 70, 1999 U.S. Dist. LEXIS 12668, 1999 WL 164348 (D.D.C. 1999).

Opinion

MEMORANDUM OPINION

FLANNERY, District Judge.

Currently pending before the court is plaintiffs’ Motion to Compel Discovery. The motion to compel relates to three specific matters. They are (1) plaintiffs’ request pursuant to Rule 34(a) of the Federal Rules of Civil Procedure that defendant Iran permit the plaintiffs’ expert witness, Mr. Reilly, and a translator, to visit Pak Dairy in Iran to inspect facilities, equipment, and machinery as may be relevant to the valuation of Pak Dairy in 1982; (2) plaintiffs’ December 24, 1998 deposition notice pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure, which asks defendant Iran to produce witnesses competent to testify as to several valuation related issues; and (3) plaintiffs’ request that defendant Iran remedy its incomplete responses to six of plaintiffs’ interrogatories and provide full and complete responses within 10 days. The basis for plaintiffs’ motion is Rule 37 of the Federal Rules of Civil Procedure. After carefully considering the motion to compel, especially with regard to the international comity issues inherent in a motion to compel directed to a foreign sovereign, this court, with minor exception, grants the plaintiffs’ motion to compel.

I. The Parties’ Contentions

(1) The Inspection Request Pursuant to Rule 34(a).

Plaintiffs ask this court to compel defendant Iran’s cooperation with plaintiffs’ request, pursuant to Rule 34(a) of the Federal Rules of Civil Procedure, that defendant Iran permit the plaintiffs’ expert witness, Mr. Robert Reilly, and a translator, to visit Pak Dairy in Iran to inspect facilities, equipment, and machinery as may be relevant to the valuation of Pak Dairy in 1982. Defendant Iran’s expert witness on valuation, Mr. Anatole Richman, recently visited Pak Dairy in Iran for this purpose. Plaintiffs contend that they should be allowed equal access to the information and facilities relevant to the valuation question. They point out that they made an informal request that Iran allow Mr. Reilly to accompany Mr. Richman, but this request was denied. According to the plaintiffs, it would be impossible for Mr. Reilly and a translator to visit Pak Dairy in Iran without defendant Iran’s cooperation because of Iran’s restrictions on foreign visitors. [73]*73Plaintiffs argue that Iran has refused all requests to allow Mr. Reilly to visit.

Iran disputes the propriety of the plaintiffs or this court requiring Iran to allow foreign litigants into Iran for the purpose of examining properties located in Iran. Iran argues that “there are no diplomatic relations between the .United States and Iran, and that the United States’ policy towards Iran is hostile.” Iran’s Opposition to the Motion to Compel at 2 (Feb. 11, 1999). Iran contends that this court lacks the power to compel a foreign sovereign, even a party in a pending lawsuit over which this court has lawful jurisdiction, to admit a United States national into its territory. Iran argues that in light of these facts, this court should deny the plaintiffs’ motion to compel as a matter of law. Iran also cites the absence of caselaw on this issue as supporting its position. Moreover, Iran contends that there is no support for plaintiffs’ request in Rule 34(a) of the Federal Rules of Civil Procedure.

(2) Iran’s Failure to Designate Witnesses Competent to Testify Regarding Twelve Valuation Related Issues.

Plaintiffs argue that they have previously filed a Rule 30(b)(6) notice on Iran regarding witnesses competent to testify as to 12 valuation related items. These items are (items 1-9) Pak Dairy’s financial position, operations, contracts, copyrights, trademarks, business plans, investments, franchises, exemptions, subsidies, production levels, capacity, planned expansions, distribution systems, and competitive position in years 1979-1982; (item 10) all efforts made by Iran to locate, obtain, and produce documents in its possession or documents in the possession of entities controlled by Iran; (item 11) the valuation used by Pak Dairy’s shareholder entities to account for Pak Dairy shares on their financial statements and reports; and (item 12) how each shareholder entity valued Pak Dairy shares from 1979-82. In their present motion, the plaintiffs ask the Court to compel Iran to produce appropriate witnesses.

Plaintiffs argue that Iran’s response to plaintiffs’ Rule 30(b)(6) notice has been insufficient. With respect to items 1-9 in the Rule 30(b)(6) notice, plaintiffs point out that Iran has merely stated that Pak Dairy might produce Pak Dairy’s accountant, Mr. Alireza Dadyar, in the Hague in late March or early April, “assuming Pak Dairy is ultimately willing to produce Mr. Dadyar and that he is willing to come.” Exhibit E, Iran’s January 27, 1999 Letter. Plaintiffs argue that this noncommittal approach is inconsistent with the purpose of Rule 30(b)(6), especially in light of the rapidly approaching June 1, 1999 deadline for the completion of discovery in this case.

Plaintiffs also point out that their Rule 30(b)(6) notice called for the taking of depositions in Washington, D.C., the location of the counsel for Iran and plaintiffs, and the location where the action is pending. Nevertheless, Iran has only offered to make Mr. Alire-za Dadyar available in the Hague, or in the alternative London. Plaintiffs ask the court to order Iran to make Mr. Dadyar available in Washington, D.C., not the Hague or London as proposed by defendant Iran. In support of this position, plaintiffs discuss the additional cost for travel by both counsel to the Hague or London, the additional cost of transporting relevant documents located in Washington, D.C. to the Hague or London, and the difficulties inherent in finding English-speaking court reporters and Farsi-English translators in the Hague. Plaintiffs also point out that based on the nature of this litigation, it is foreseeable that disputes may arise during the deposition, and that if these depositions are taken in the Hague or London then the availability of the court to resolve these disputes will be severely diminished due to time zone differences.

Plaintiffs’ motion to compel also discusses the parties’ attempts to reach an accommodation regarding the deposition of Ms. Nasrin Niktash, Legal Adviser of the Bureau of International Legal Services. Plaintiffs inform the court that Iran has offered to make Ms. Niktash available for a telephonic deposition from Tehran with regard to item 10 of plaintiffs’ Rule 30(b)(6) notice. Plaintiffs indicate that this arrangement is acceptable, provided that Iran stipulates to the authenticity and admissibility of each of the documents that it has produced. Plaintiffs argue that without this accommodation by Iran, it [74]*74will be very difficult for plaintiffs to accept Iran’s proposal for a telephonic deposition because that mode of deposition will make it extremely difficult to depose Ms. Niktash with regard to the documents produced under her direction.

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Cite This Page — Counsel Stack

Bluebook (online)
185 F.R.D. 70, 1999 U.S. Dist. LEXIS 12668, 1999 WL 164348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckesson-corp-v-islamic-republic-of-iran-dcd-1999.