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Norex Petroleum Ltd. v. ACCESS INDUSTRIES, INC.

Citations: 620 F. Supp. 2d 587; 2009 U.S. Dist. LEXIS 51455; 2009 WL 1562945Docket: 02 Civ. 1499(LTS)(KNF)

Court: District Court, S.D. New York; June 4, 2009; Federal District Court

Narrative Opinion Summary

In this case, Norex Petroleum Limited alleged that several defendants, including Access Industries, engaged in a conspiracy violating Russian law and the Racketeer Influenced and Corrupt Organizations Act to take over a Russian oil company. After the initial complaint was dismissed for lack of subject matter jurisdiction, Norex appealed to the Second Circuit Court of Appeals. During this appellate process, Norex sought to depose John Irving, a UK citizen and a key figure with alleged critical information, through a motion under Federal Rule of Civil Procedure 27(b). The motion was intended to preserve Irving’s testimony, given the potential difficulties of deposing him in the UK due to legal constraints and his pending sentencing in the U.S. The defendants opposed the motion, arguing it was an attempt to bypass a discovery stay and asserting Irving’s immunity from service of process. The court found Norex's motion defective due to procedural deficiencies, such as the omission of Irving's address, and determined that Norex failed to show the testimony could not otherwise be preserved. Consequently, the motion was denied, underscoring the discretionary nature of granting such motions and the importance of adhering to procedural requirements for perpetuating testimony.

Legal Issues Addressed

Discretionary Power of the Court under Rule 27

Application: The court exercised its discretion to deny Norex's motion, citing Norex's failure to demonstrate a specific need to preserve Irving's testimony.

Reasoning: The decision to grant a motion under Fed. R. Civ. P. 27 is at the Court's discretion, requiring the movant to demonstrate a specific need to preserve testimony and that losing it would result in a failure of justice.

Immunity from Service of Process

Application: The court affirmed that Irving was immune from service of process while in the U.S. for unrelated sentencing, which Norex could not challenge.

Reasoning: The defendants also contend that Norex lacks standing to challenge Irving's process-serving privilege, which only he can assert or waive.

Perpetuation of Testimony under Federal Rule of Civil Procedure 27

Application: The court evaluated Norex's motion to depose John Irving under Rule 27(b) and found it defective for failing to provide necessary details such as Irving's address.

Reasoning: Fed. R. Civ. P. 27 outlines the procedures for perpetuating testimony, requiring a motion to include the deponent's name, address, expected testimony substance, and reasons for perpetuation. Norex's motion is deemed defective as it fails to provide Irving's address, which undermines the motion's validity.