Republic of Turk. v. Christie's, Inc.

312 F. Supp. 3d 385
CourtDistrict Court, S.D. Illinois
DecidedMay 14, 2018
Docket1:17–cv–03086 (AJN) (SDA)
StatusPublished
Cited by10 cases

This text of 312 F. Supp. 3d 385 (Republic of Turk. v. Christie's, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Republic of Turk. v. Christie's, Inc., 312 F. Supp. 3d 385 (S.D. Ill. 2018).

Opinion

STEWART D. AARON, United States Magistrate Judge

Before the Court is a Letter Motion by Defendants, Christie's, Inc. ("Christie's") and Michael Steinhardt ("Steinhardt") (collectively, the "Defendants"), for a protective order prohibiting Plaintiff, the Republic of Turkey (the "Republic" or "Plaintiff"), from pursuing certain deposition testimony, documents and written discovery from Steinhardt, his wife and his employee regarding Steinhardt's experience and practices in acquiring antiquities. (See ECF No. 100.) For the following reasons, the Court GRANTS IN PART and DENIES IN PART Defendants' Letter-Motion.

BACKGROUND

This is an action by the Republic to recover an Anatolian Kiliya-Type Idol (the "Idol"), an extremely rare artifact currently in the possession of Christie's, which the Republic contends was illicitly removed from the Republic. (Compl., ECF No. 1, ¶¶ 1-3.) This action was commenced on April 27, 2017 in advance of a planned sale of the Idol at an auction to be held at Christie's on April 28, 2017. (Id. ¶ 3.) The Complaint asserted claims for replevin, conversion and injunctive and declaratory relief. (Id. ¶¶ 23-46.) District Judge Nathan denied the Republic's motion for a temporary restraining order to enjoin the sale, but Christie's agreed to delay for 60 days the receipt of funds by any successful bidder; to retain possession of the object for 60 days; and to announce orally in advance of the auction that the Republic had asserted a claim of ownership with respect to the Idol. (4/27/17 Hearing Tr., ECF No. 18, at 46-47.)

An Amended Complaint was filed on May 26, 2017, in substance asserting the same claims as were asserted in the Complaint, but adding the Idol as "Defendant-in-rem." (Am. Compl., ECF No. 24.) Also on May 26, 2017, the Republic filed a motion for a preliminary injunction seeking to enjoin Defendants from selling, transferring, pledging or otherwise alienating or disposing of the Idol, and requiring maintenance of the Idol until further Order of the Court. (See ECF Nos. 26-30.) The parties thereafter agreed to the terms *387of a Stipulated Order, approved by the Court on June 21, 2017, with regard to the preliminary injunction motion. (ECF No. 46.) The Stipulated Order stated that Christie's informed the Republic that Steinhardt was the consigner of the Idol and that an unidentified winning bidder at the previously held auction (the "Bidder") no longer intended to consummate the purchase of the Idol. The Stipulated Order also provided that Christie's retain possession of the Idol and would not sell or otherwise dispose of it, except upon certain agreed terms. (Id. )

On June 23, 2017, Plaintiff moved to compel Christie's to disclose the name and contact information of the Bidder.1 (Pl's. Letter Mot. to Compel, ECF No. 47.) Christie's and the Bidder opposed the motion, arguing (among other things) that the Bidder did not have relevant information. (See ECF Nos. 51-54.) After recognizing the broad scope of discovery, Judge Nathan granted the Republic's motion to compel, but ordered that certain safeguards be imposed by way of an appropriate protective order. Republic of Turkey v. Christie's Inc. , 17-CV-3086 (AJN), 2017 WL 3206334 (S.D.N.Y. July 26, 2017).

A Second Amended Complaint ("SAC") was filed on July 27, 2017.2 The SAC replaces the "John Doe" defendants (who had been designated as unknown consignors) with Steinhardt, the actual consignor, who is a member of Christie's American Advisory Board. (SAC, ECF No. 65, ¶ 5.) The SAC contains allegations regarding Steinhardt's acquisition of the Idol from Merrin Gallery on August 16, 1993,3 and that he "knew or should have known at the time that the Idol had been looted from Turkey." (Id. ¶¶ 22-23.) The SAC alleges that "Steinhardt has been involved with several high profile cases involving looted antiquities." (Id. ¶ 24.) The SAC also contains quotes from Steinhardt from a 2006 Forbes article, stating that ancient art "has been under a cloud because of issues of provenance, which have made headlines in the last five-to-10 years and continue to make headlines." (Id. ¶ 25.)

On August 28, 2017, Defendants moved to dismiss the SAC, arguing that Plaintiff's delay of more than twenty years in making a known claim is unreasonable and that the SAC should be dismissed under a statute of limitations defense. (Defs'. Mem., ECF No. 75, at 12-15.) They also argued that the Plaintiff's delay of more than fifty years violated the doctrine of laches. (Id. at 15-21.) By Order dated May 8, 2018, Judge Nathan denied Defendants' motion to dismiss the Second Amended Complaint, holding that Defendants could raise their statute of limitations and laches defenses at the summary judgment stage, if appropriate. (See ECF No. 101.)

On their instant protective order motion, Defendants seek to limit "the scope of discovery from Defendant Steinhardt, including from his employee, Ms. Leonardo and his wife," to the following information and documents: "Mr. Steinhardt's purchase of and attempt to sell the Idol, his *388possession of the Idol, the general policies he followed before [his] 1993 acquisition and his acquisition of Anatolian antiquities before 1993."4 (See ECF No. 100, at 1, 3.) During oral argument, Defendants stated that this limitation was needed because the Republic was seeking discovery regarding each of the over 1000 antiquity transactions in which Steinhardt engaged. The Republic argues that no such limitations are necessary or appropriate, asserting that "Steinhardt's habits and practices with respect to antiquities acquired both before and after 1993, and any changes in those habits or practices, are relevant to his vigilance or lack thereof when he acquired the Idol." (See ECF No. 102, at 3.)

Oral argument was held by telephone on May 14, 2018.

DISCUSSION

I. Legal Standard

Under Federal Rule of Civil Procedure 26(c), "[a] party or any person from whom discovery is sought may move for a protective order in the court where the action is pending .... The court may, for good cause, issue an order to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense." " Rule 26(c) confers broad discretion on the trial court to decide when a protective order is appropriate and what degree of protection is required." Seattle Times Co. v. Rhinehart , 467 U.S. 20, 36, 104 S.Ct. 2199, 81 L.Ed.2d 17 (1984). The burden of showing good cause for the issuance of a protective order falls on the party seeking the order. See Brown v. Astoria Fed. Sav. & Loan Ass'n

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312 F. Supp. 3d 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-of-turk-v-christies-inc-ilsd-2018.