Rapoport v. Banco Mexicano Somex, S.A.

706 F. Supp. 207, 1988 U.S. Dist. LEXIS 13305, 1988 WL 126063
CourtDistrict Court, S.D. New York
DecidedNovember 28, 1988
DocketNo. 87 Civ. 6557 (CSH)
StatusPublished
Cited by1 cases

This text of 706 F. Supp. 207 (Rapoport v. Banco Mexicano Somex, S.A.) 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
Rapoport v. Banco Mexicano Somex, S.A., 706 F. Supp. 207, 1988 U.S. Dist. LEXIS 13305, 1988 WL 126063 (S.D.N.Y. 1988).

Opinion

MEMORANDUM OPINION AND ORDER

HAIGHT, District Judge:

In my Memorandum Opinion and Order of February 9, 1988 I described, in brief, the nature of certain motions pending in this case and ordered that additional papers relevant to the motions be submitted to the Court, [available on WESTLAW, 1988 WL 13782] Those submissions have now been made and this Opinion will resolve all pending matters.

BACKGROUND

I presume familiarity with this Court’s decision of February 9, 1988 and the multitude of decisions issued by other courts relative to the dispute between these parties, copies of which are annexed to the Notice of Motion to Dismiss filed by defendant Banco Mexicano Somex, S.N.C. (“Somex”) (sued herein as Banco Mexicano Somex, S.A.). See Rapoport v. Banco Mexicano Somex, S.A., No. 80 Civ. 3465 (E.D.N.Y. May 7, 1981) (Platt, J.) (Exhibit 3), aff'd, 668 F.2d 667 (2d Cir.1982) (per curiam) (Exhibit 4); Banco Mexicano Somex, S.A. v. Rapoport, No. 82 Civ. 980 (S.D.N.Y. June 23, 1982) (Brieant, J.) (Exhibit 8), aff'd mem., 729 F.2d 1442 (2d Cir.1983) (Exhibit 10); Constructora Republica, S.A. v. Banco Mexicano Somex, S.A., No. 82 Civ. 7200 (S.D.N.Y. February 2 and May 17, 1983) (Weinfeld, J.) (Exhibits 13 and 15), appeal dismissed, No. 83-7600 (2d Cir. August 31, 1983) (Exhibit 17); Rapoport, et al. v. Republic of Mexico, et al., 619 F.Supp. 1476 (D.D.C.1985) (Penn, J.) (Exhibit 19), aff'd, No. 85-6195 (D.C. Cir. May 22, 1986) (per curiam) (Exhibit 20); Rapoport, et al. v. Republic of Mexico, et al., No. 84 Civ. 2054 (D.D.C. November 26 and November 27, 1985) (Penn, J.) (Exhibits 23 and 24).

The prior decisions cited above describe the tangled web of events that gave rise to the current litigation, and I will not recount them at length. In brief, however, this litigation involves the claim of the plaintiff, Maurice Rapoport, to funds originally deposited with defendant Banco Mexicano So-[209]*209mex. When various parties in Mexico asserted competing claims to those funds, the money was transferred by Somex to defendant Nacional Financiera, S.N.C. (sued herein as Nacional Financiera, S.A.), a depository bank of the Mexican government that acts as stakeholder in de consignación actions, a proceeding similar to an inter-pleader action in this Court. This brief account, borrowed from one of the prior decisions, is a useful summary of the most important facts in the case:

Appellant Maurice A. Rapoport seeks the return of deposits he made — on behalf either of himself or his corporation, Constructora República — in the Mexico City office of appellee Banco Mexicano. In 1978 Banco Mexicano began receiving conflicting claims to the funds in both the personal and the company accounts. Claimants included Rapoport’s ex-wife, who had previously made withdrawals from the Constructora account, and for whose support the 4th Family Court of Mexico City directed the bank to withhold from Rapoport’s personal account 20,000 pesos alimony per month; Rapo-port’s daughter, named as co-depositor to Rapoport’s personal account; Herrera and Barragan, two holders of promissory notes executed by Rapoport for the full value of his personal account, who in turn executed notes in Rapoport’s favor for that amount less 10%, and who obtained from the 40th Civil Court of the Federal District of Mexico an order directing the bank to pay them; and Maria Erbe, an assignee of Herrera’s and Bar-ragan’s notes who obtained in the 30th Civil Court of Mexico City an attachment of nearly three million pesos from Rapo-port’s personal account as security for her eventually successful action against Rapoport.
In the face of these conflicting claims, Banco Mexicano instituted two de consig-nación actions (similar to interpleader actions), one in the 7th Civil Court of the Federal District of Mexico (where it deposited funds from the Constructora account) and one in the 28th Civil Court (where it deposited all funds from the personal account). Of the claimants, all but Rapoport’s daughter are Mexican citizens living in Mexico. Rapoport, having been jailed in Mexico and then deported in March 1980 for violating Mexican immigration laws, apparently faces up to ten years in prison if he goes back to Mexico.

Rapoport v. Banco Mexicano Somex, S.A., 668 F.2d 667, 668-69 (2d Cir.1982).

The complexity of the facts in this case pales in comparison to the long history of the litigation itself. That history was summarized by Judge Penn of the District Court of the District of Columbia as follows:

Rapoport is no stranger to the United States courts. He first filed an action against Somex in the Supreme Court of the State of New York, Ulster County, in May 1980, alleging claims for breach of contract and loss of income. Somex removed the action to the United States Court for the Northern District of New York. After dismissing Manufacturers Hanover as a defendant, Judge McCurn transferred the action to the Eastern District of New York. Rapoport v. Banco Mexicano Somex, S.A., No. 80 Civ. 3465 (TCP) (E.D.N.Y.). In view of the absence of indispensable parties, namely, the other Mexican claimants to the disputed funds, defendant Somex moved to dismiss. Judge Platt granted the motion on May 7, 1981. Rapoport appealed the dismissal, and the Second Circuit affirmed. Rapoport v. Banco Mexicano Somex, 668 F.2d 667 (2d Cir.1982).
First, Mrs. Rapoport, Ms. Diane Rap-port, Mr. Herrera, Mr. Barragan, and Mrs. Erbe all should be joined as parties. Under Rule 19(a)(2), all claim an interest relating to the subject of this action, and all may be impeded in their ability to protect their interest should this action go forward. Furthermore, the Bank [Somex] would be subjected to substantial risk of incurring multiple liability by reason of the claims of the absentees. Second, at least four of those persons are Mexican citizens and are beyond the jurisdiction of this Court.
Rapoport v. Banco Mexicano Somex, S.A., 80 Civ. 3465, slip op. at 5-6 (E.D.N.Y. May 7, 1981). Judge Platt noted that a United States court could not adequately protect the interests of the absent Mexican parties; “in equity and good conscience,” therefore, the action could not proceed without them. Rapoport, slip op. at 6.
Thereafter, Rapoport commenced picketing at Somex’s New York Office, wielding a sign denouncing Somex as a “crooked Mexican Bank.” In an attempt to enjoin the picketing, Somex commenced an action before the Supreme Court of the State of New York, New [210]*210York County. Rapoport had the action removed to the Southern District of New York and filed an answer and cross-complaint, reasserting the breach of contract claims, adding allegations of fraud and false imprisonment, and adding Nafinsa [Nacional Financiera] as a party-defendant.

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Related

Maurice A. Rapoport v. Banco Mexicano Somex
107 F.3d 4 (Second Circuit, 1997)

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Bluebook (online)
706 F. Supp. 207, 1988 U.S. Dist. LEXIS 13305, 1988 WL 126063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rapoport-v-banco-mexicano-somex-sa-nysd-1988.