Murty v. Aga Khan

92 F.R.D. 478, 9 Fed. R. Serv. 1533, 1981 U.S. Dist. LEXIS 16164
CourtDistrict Court, E.D. New York
DecidedDecember 8, 1981
DocketNos. 81-CV-1898, 81-CV-2419
StatusPublished
Cited by6 cases

This text of 92 F.R.D. 478 (Murty v. Aga Khan) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murty v. Aga Khan, 92 F.R.D. 478, 9 Fed. R. Serv. 1533, 1981 U.S. Dist. LEXIS 16164 (E.D.N.Y. 1981).

Opinion

MEMORANDUM AND ORDER

WEINSTEIN, Chief Judge:

This action arises out of the collapse of the financial empire of Marcel Boussac, a French citizen. Among Mr. Boussac’s possessions at the time of his bankruptcy were 200 thoroughbred horses. While the French bankruptcy proceedings were pending 56 of these horses were sold in France without the consent of the bankruptcy trustees to the individual plaintiff, an American citizen resident in New York. Subsequently the trustees contracted with defendant, “His Highness the Aga Khan,” a citizen of France, for the sale of all 200 horses. They then sought and obtained a judgment from a French court voiding the sale to plaintiff and returning the 56 horses to their trust. Finally, they sold the horses to defendant under the terms of his original offer.

Plaintiff unsuccessfully sued defendant in a French court to void the latter’s purchase of the 56 horses. During the course of this litigation articles appeared in several periodicals suggesting that defendant had improper influence over the French racing industry. On the basis of these articles defendant obtained a judgment in a French court against plaintiff for defamation.

In the present action plaintiff seeks tort damages for defendant’s alleged interference with his French contract rights. The claim is based on allegations that defendant used improper influence on French racing and customs officials and the French courts. Defendant moves for dismissal claiming that this is an inconvenient forum and on jurisdictional grounds.

A court may refrain from exercising jurisdiction when an adequate and appropriate alternative forum is available and trial of the case in the court in which it was brought would seriously inconvenience or prejudice defendant or the interests of justice. Gulf Oil Corporation v. Gilbert, 330 U.S. 501, 67 S.Ct. 839, 91 L.Ed. 1055 (1947); Roster v. Lumbermen’s Mutual Casualty Company, 330 U.S. 518, 67 S.Ct. 828, 91 L.Ed. 1067 (1947); Rogers v. Guaranty Trust Company of New York, 288 U.S. 123, 130, 53 S.Ct. 295, 298, 77 L.Ed. 652 (1932). “[Jurisdiction will be declined whenever considerations of convenience, efficiency, and justice point to the courts of the state of domicile as appropriate tribunals for the determination of the particular case.” Rogers v. Guaranty Trust Company of New York, 288 U.S. 123, 131, 53 S.Ct. 295, 298, 77 L.Ed. 652 (1932).

Transfer to another domestic jurisdiction is mandated under appropriate circumstances by 28 U.S.C. § 1404(a), “but the enactment of § 1404(a) did not deprive the federal courts of their inherent right to refuse jurisdiction in cases which should have been brought in a foreign country.” I Moore’s Federal Practice ¶ 0.145[3.-1] n. 5. See Olympic Corp. v. Societe Generale, 462 F.2d 376 (2d Cir. 1972); De Sairigne. v. Gould, 83 F.Supp. 270 (S.D.N.Y.), aff’d, 177 F.2d 515 (2d Cir. 1949), cert. denied, 339 U.S. 912, 70 S.Ct. 571, 94 L.Ed. 1338 (1950). “An American citizen does not have an absolute right, under all circumstances, to sue in an American court.” Vanity Fair Mills v. T. Eaton, 234 F.2d 633, 645 (2d Cir.), cert. denied, 352 U.S. 871, 77 S.Ct. 96, 1 L.Ed.2d 76 (1956). See De Sairigne v. Gould, supra. United States citizenship is “an important, but not necessarily determinative factor in whether the action may be dismissed on the grounds of forum non conveniens.” John Fabick Tractor Co. v. Penelope Shipping Co. & S. S. World Mermaid, 278 F.Supp. 182, 183 (S.D.N.Y.1967). Cf. N.Y. CPLR 327 (inconvenient forum); Silver v. Great American Insurance Co., 29 N.Y.2d 356, 361, 328 N.Y.S.2d 398, 402, 278 N.E.2d 619 (1972); Irrigation & Industrial Development Corp. v. Indag, S.A., 44 A.D.2d 543, 353 N.Y.S.2d 471 (1st Dept. 1974).

Where the decision to exercise jurisdiction turns solely on the balance of convenience between the parties federal courts are reluctant to force an American plaintiff to litigate in a foreign court. Leasco Data Processing Equipment Corp. v. Maxwell, [481]*481468 F.2d 1326, 1344 (2d Cir. 1972). Forum non conveniens, however, may be invoked in response not only to the prospect of prejudice to the defendant, but also where “facts .. . make trial in the chosen forum inappropriate because of considerations affecting the court’s own administrative and legal problems.” Roster v. Lumbermen’s Mutual Casualty Company, 330 U.S. 518, 524, 67 S.Ct. 828, 832, 91 L.Ed. 1067 (1947). In Gulf Oil, the court elaborated on this standard:

Factors of public interest also have a place in applying the doctrine. Administrative difficulties follow for the courts when litigation piles up in congested centers instead of being handled at its origin .... There is an appropriateness, too, in having the trial of a diversity case in a forum that is at home with the state law that must govern the case, rather than having a court in some other forum untangle problems in conflict of laws, and in law foreign to itself. .

330 U.S. 501, 508-9, 67 S.Ct. 839, 843, 91 L.Ed. 1055 (1947).

Sometimes the interests of the administration of justice are themselves insufficient to justify forcing an American plaintiff to litigate abroad. Burt v. Isthmus Development Company, 218 F.2d 353, 357 (5th Cir. 1955). Where, however, the balance of convenience of the litigants and the interests of the administration of justice both militate in favor of transfer of venue to a foreign jurisdiction, the argument for favoring an American citizen’s choice of forum becomes less compelling. Vanity Fair Mills v. T. Eaton, 234 F.2d 633, 646 (2d Cir.), cert. denied, 352 U.S. 871, 77 S.Ct. 96, 1 L.Ed.2d 76 (1956).

Trial courts have traditionally been granted wide discretion in weighing the variety of factors bearing on a decision to refrain from exercising jurisdiction. Alcoa v. N/V Nordic Regent, 654 F.2d 147 (2d Cir. 1980).

“Exercise ... of the doctrine of forum non conveniens is committed to the sound discretion of the district court to be exercised in light of all the circumstances in the case. The combination and weight of factors requisite to a given result cannot be catalogued.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Canales Martinez v. Dow Chemical Co.
219 F. Supp. 2d 719 (E.D. Louisiana, 2002)
Sussman Ex Rel. Guilden v. Bank of Israel
801 F. Supp. 1068 (S.D. New York, 1992)
Flynn v. General Motors, Inc.
141 F.R.D. 5 (E.D. New York, 1992)
Ahmad v. Wigen
726 F. Supp. 389 (E.D. New York, 1989)
United States v. Salim
664 F. Supp. 682 (E.D. New York, 1987)
Rudetsky v. O'DOWD
660 F. Supp. 341 (E.D. New York, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
92 F.R.D. 478, 9 Fed. R. Serv. 1533, 1981 U.S. Dist. LEXIS 16164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murty-v-aga-khan-nyed-1981.