Ungar v. Palestinian Authority

44 A.D.3d 176, 841 N.Y.S.2d 61
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 16, 2007
StatusPublished
Cited by10 cases

This text of 44 A.D.3d 176 (Ungar v. Palestinian Authority) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ungar v. Palestinian Authority, 44 A.D.3d 176, 841 N.Y.S.2d 61 (N.Y. Ct. App. 2007).

Opinion

OPINION OF THE COURT

Marlow, J.

Plaintiffs seek to enforce a multi-million dollar judgment entered by the United States District Court for the District of Rhode Island against defendant judgment debtors the Palestinian Authority and the Palestine Liberation Organization. Plaintiffs are the legal representatives and heirs of an American citizen and his Israeli wife who were murdered in Israel by the terrorist group Hamas-Islamic Resistance Movement. Plaintiffs commenced the underlying lawsuit pursuant to the Antiterrorism Act of 1990 (18 USC § 2331 et seq.) alleging that the Palestinian Authority and the Palestine Liberation Organization provided Hamas with a base of operations and support to conduct terrorist activities, including the murder of plaintiffs’ decedents.

After the Palestinian Authority repeatedly and deliberately failed to answer plaintiffs’ discovery requests, and the Palestine Liberation Organization failed to answer the complaint, the Rhode Island District Court imposed the extreme sanction of granting plaintiffs a default judgment; damages were assessed in the amount of $116,409,123 plus attorneys’ fees (see Estates of Ungar v Palestinian Auth., 325 F Supp 2d 15 [D RI 2004], affd sub nom. Ungar v Palestine Liberation Org., 402 F3d 274 [1st Cir 2005], cert denied 546 US 1034 [2005]).

Because defendants utterly failed to satisfy the judgment, plaintiffs commenced this enforcement proceeding. They successfully restrained certain assets of defendant the Insurance and Pension Fund, and seek a judgment herein declaring that the restrained assets are the Palestinian Authority’s property. Defendants maintain that the Insurance and Pension Fund is a separate and independent entity from the judgment debtors and that the restraining notice should therefore he vacated.

[178]*178In the course of discovery within this enforcement proceeding, plaintiffs noticed James Tanenbaum, a former partner at Stroock & Stroock & Lavan. While at that firm, Tanenbaum was a registered foreign agent of the Palestinian Authority and represented both the authority and the Insurance and Pension Fund. On December 21, 2006, the parties appeared in court for a conference. The court directed the Insurance and Pension Fund to produce Tanenbaum for a deposition “to take place by” January 10, 2007, and, further, to produce two overseas witnesses for deposition thereafter. The court ordered the parties to complete all this discovery by February 15, 2007 and to file the note of issue the next day.

Defendants notified plaintiffs that they could produce Tanenbaum on January 9—one day before the ordered deadline for this witness—with the understanding that he had a lunch meeting and would be unavailable between noon and 2:15. Plaintiffs responded that they did not want to start the deposition and be interrupted for that lengthy period of time and requested that Tanenbaum be produced the next day. Defendants complied with this request. The deposition ran from 10:30 a.m. to 7:00 p.m., with a half-hour lunch break. The court reporter had to leave at 7:00, but plaintiffs had not finished deposing the witness. Plaintiffs maintain that they only had enough time to question the witness about his involvement with the Authority’s assets between 1996 and 2001, leaving unaddressed his involvement from 2001 until the present. At about 6:20, plaintiffs’ counsel advised that he would not be finished for several more hours. Defendants’ counsel stated that Tanenbaum would continue for as long as the court reporter was available, but refused to produce him another day. Plaintiffs’ counsel observed that:

“Mr. Tanenbaum has been evidently prepared, I assume prepared, to talk quite slowly, there’s long breaks between questions and the answers, inordinately long periods of time are spent perusing documents, including one time when I told him I’m only going to be asking about the first page of a document and I watched him read through each page of the document, which is admirable deposition preparation, but it makes things take a long time.”

Defendants’ counsel responded that “Mr. Tanenbaum’s been here, he’s answered your questions fairly and completely the best he can.” Therefore, plaintiffs’ assertion that Tanenbaum’s [179]*179answers were inordinately and deliberately long and delayed stands as an uncontradicted claim which we deem as a fact on this record. Since plaintiffs had not finished deposing Tanenbaum when the deposition ended for the night, plaintiffs’ attorney asked the court for an opportunity to complete the deposition on another date, but the court refused. This appeal followed.

We reverse.

The key facts that move us to reverse are that (1) plaintiffs did not disobey any order of the court, and (2) their attorney began the Tanenbaum deposition on time, i.e., on the morning of January 10. The appeal was taken only because the deposition was not completed by day’s end, and the court declined plaintiffs’ request to complete it on another date, notwithstanding its prior order requiring that all the remaining discovery be “completed” by February 15.

This Court is vested with the power to substitute its own discretion for that of the motion court, even in the absence of abuse (Andon v 302-304 Mott St. Assoc., 94 NY2d 740, 745 [2000], citing, inter alia, Brady v Ottaway Newspapers, 63 NY2d 1031, 1032 [1984])—a power we rarely and reluctantly invoke.

While we agree with the dissent that Supreme Court actively and carefully managed discovery, the court gave plaintiffs fewer than three weeks—one falling during a holiday week—to depose Tanenbaum. Defendants did not offer Tanenbaum until January 9, one day before the court order expired, and only on condition that the deposition be interrupted for over two hours while he attended a lunch meeting. Plaintiffs, not unreasonably under that restriction, declined to start the deposition on the 9th, and instead the parties agreed to begin the following morning, clearly within the court’s deadline. Defendants, who never objected to producing their witness for more than one day, insist that his deposition could not go beyond January 10, the date by which the court had ordered his deposition be “taken.”

Plaintiffs’ simple request to continue this timely deposition to completion—which was unnecessarily prolonged by—as characterized by plaintiffs’ counsel—the witness’s “excruciatingly slow manner” in answering questions—should have been granted for the following reasons: (1) the court on the preceding December 21 gave plaintiffs a relatively short deposition schedule, which included a holiday week, for this witness; (2) plaintiffs commenced in a timely manner after defendants offered the last two days of the ordered time frame; (3) the other [180]*180outstanding discovery was yet to continue for more than another five weeks; (4) this witness’s testimony was critically important to plaintiffs’ claims, given his particular, long-term knowledge concerning the restrained assets at issue; and (5) defendants did not claim any potential prejudice were the request to be granted.

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Cite This Page — Counsel Stack

Bluebook (online)
44 A.D.3d 176, 841 N.Y.S.2d 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ungar-v-palestinian-authority-nyappdiv-2007.