Socialist Republic of Romania v. Wildenstein & Co.

147 F.R.D. 62, 26 Fed. R. Serv. 3d 276, 1993 U.S. Dist. LEXIS 3147, 1993 WL 70618
CourtDistrict Court, S.D. New York
DecidedMarch 11, 1993
DocketNo. 85 Civ. 2435 (DNE)
StatusPublished
Cited by7 cases

This text of 147 F.R.D. 62 (Socialist Republic of Romania v. Wildenstein & Co.) 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
Socialist Republic of Romania v. Wildenstein & Co., 147 F.R.D. 62, 26 Fed. R. Serv. 3d 276, 1993 U.S. Dist. LEXIS 3147, 1993 WL 70618 (S.D.N.Y. 1993).

Opinion

MEMORANDUM & ORDER

EDELSTEIN, District Judge:

Romania commenced this action on March 29, 1985, seeking the return of two paintings by El Greco that were sold by the last monarch of Romania, King Michael, in 1947. On June 19, 1985, defendants Wildenstein & Co. Inc. and Daniel Wildenstein (collectively “Wildenstein” or “defendants”) served interrogatories and a document request on plaintiff, the Socialist Republic of Romania (“Romania”). As subsequently became clear, plaintiffs response to defendants’ discovery requests was deficient. On September 12, 1985, Romania’s attorneys, Gadsby & Hannah, moved to withdraw as counsel in response to, inter alia, their client’s failure to comply with discovery requests.

At a pre-motion conference held on October 3, 1985, defendants informed this Court that plaintiff had failed to. produce discoverable material. Romania’s counsel, however, represented to the Court that plaintiff wished to proceed with the action, and that Romania would comply with defendants’ discovery requests. Accordingly, this Court denied counsel’s motion to withdraw, ordered that Romania participate in good faith in the discovery process, and directed Wildenstein to move to compel discovery in the event that Romania failed to comply with this Court’s order.

Romania failed to produce requested documents. Therefore, on November 15, 1985, Wildenstein moved to compel discovery. On December 6, 1986, this Court granted defendants’ motion, and ordered Romania to produce the requested documents.

Once again, Romania failed to adhere to this Court’s order, and refused to produce discoverable material. On January 16, 1986, Romania’s counsel renewed their motion to withdraw, and advised this Court that Romania “had once again lapsed into a state of non-cooperation and non-communication.” This Court denied counsel’s motion to withdraw and, on January 23, 1986, warned Ro[64]*64mania that the case would be dismissed with prejudice if Romania failed to comply with the Court’s discovery orders. Finally, this Court ordered Romania to produce discoverable material by January 31, 1986. Romania failed to produce the documents covered by this order.

On January 31, 1986, plaintiffs counsel requested additional time in which to comply with this Court’s order. On February 10, 1986, defendants informed the Court that plaintiffs still had not complied with this Court’s discovery orders. On February 13, 1986, Romania’s counsel informed the Court that Romania would appear before the Court on the morning of February 14, 1986, in order to clarify its position with regard to discovery. Romania failed to appear before this Court, did not offer any submission to this Court to justify its failure to comply with outstanding discovery orders, and severed communication with the Court.

Romania’s repeated failure to comply with this Court’s discovery orders and the legitimate discovery demands made by defendants caused the continuation of this action to be an exercise in futility. Accordingly, by an order dated February 20, 1986, this case was dismissed with prejudice pursuant to Federal Rule of Civil Procedure (“Rule”) 37(b)(2)(C). Romania did not appeal this dismissal.

Instead, Romania pursued an action in another forum. In February 1987, Romania served defendants with a summons to appear before a Romanian court on May 3, 1987. See Defendants’ Exhibit, (“Wildenstein Ex.”) I. Wildenstein did not appear before the Romanian court. See Defendants’ Memorandum of Law in Opposition to Plaintiffs Motion Pursuant to Rule 60(b)(6) For Relief from the Order Dismissing the Action, (“Defendants’ Memorandum”) at 6. On August 5, 1987, Romania informed Wildenstein that the Romanian court had rendered judgment against defendants and that this judgment would be enforced in the United States. See Wildenstein Ex.N. There is no record of any attempt by plaintiff to enforce this purported judgment in the United States.

In December 1989, the Socialist Republic of Romania was overthrown. Plaintiff now moves the Court, pursuant to Rule 60(b)(6), for relief from the order of dismissal entered by this Court more than six years ago. Plaintiff avers that the current Romanian government is willing to participate in discovery.

DISCUSSION

A. Plaintiffs Rule 60(b)(6) Motion

Federal Rule of Civil Procedure 60(b)(6) provides that “upon such terms as are just, the court may relieve a party or a party’s legal representative from a final judgment ... [for any] reason justifying relief from the operation of the judgment.” Fed.R.Civ.P. 60(b). A motion made pursuant to Rule 60(b)(6) must be “made within a reasonable time” of the date that such judgment becomes final, id., and may be granted by the Court only upon “a showing by the moving party of ‘exceptional circumstances.’” Gwen Sportswear, Inc. v. State Mutual Life Assurance Co., 1991 WL 130892, *1, 1991 U.S.Dist. LEXIS 9165, *3 (S.D.N.Y. July 3, 1991) (citation omitted); see also Federal Deposit Ins. Corp. v. Sarandon, 763 F.Supp. 757, 760 (S.D.N.Y.1991) (quoting Klapprott v. United States, 335 U.S. 601, 614-15, 69 S.Ct. 384, 390-91, 93 L.Ed. 266 (1949)) (Rule 60(b)(6) requires “that the reason be one ‘justifying’ relief—i.e., that the circumstances be extraordinary and such as to make relief necessary in the interest of justice.”). Thus, Rule 60(b)(6) “may be invoked only when there are extraordinary circumstances justifying relief, when the judgment may work an extreme and undue hardship, and when the asserted grounds for relief are not recog nized in clauses (l)-(5) of the Rule.” Kya-Hill v. Davidson, 1990 WL 129177, *1, 1990 U.S.Dist. LEXIS 11468, *3 (S.D.N.Y. Aug. 30,1990) (citing Nemaizer v. Baker, 793 F.2d 58, 63 (2d Cir.1986)). In evaluating the propriety of a Rule 60(b)(6) motion, a district court must “balance[ ] the interest of granting [the] motion to accomplish justice against the interest of finality of litigation.” Harman v. Pauley, 678 F.2d 479, 481 (4th Cir. 1982). When a movant is able to demonstrate that the interests of justice favor vacatur, Rule 60(b)(6) “allows a district court to vacate its own final judgment____ The Rule gives the Court such authority to accomplish [65]*65justice and leaves such determinations to its discretion.” Id at 480.

As an initial matter, plaintiffs Rule 60(b)(6) motion is not timely. A Rule 60(b)(6) motion must be “made •within a reasonable time” of the date that the judgment it seeks to have vacated becomes final. See Fed.R.Civ.P. 60(b). Plaintiff filed its Rule 60(b)(6) motion in September 1992.

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Bluebook (online)
147 F.R.D. 62, 26 Fed. R. Serv. 3d 276, 1993 U.S. Dist. LEXIS 3147, 1993 WL 70618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/socialist-republic-of-romania-v-wildenstein-co-nysd-1993.