You are on page 1of 7

11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.

(2015NYSlipOp51696(U))

[*1]
PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.
2015NYSlipOp51696(U)

DecidedonNovember17,2015
SupremeCourt,NassauCounty

DeStefano,J.

PublishedbyNewYorkStateLawReportingBureaupursuanttoJudiciaryLaw431.

ThisopinionisuncorrectedandwillnotbepublishedintheprintedOfficialReports.

DecidedonNovember17,2015
SupremeCourt,NassauCounty

PassportSpecialOpportunitiesMasterFund,L.P.,Plaintiff,

against

ARYCommunications,Ltd.,HajiMohammadIqbal,MohammadMehboob,
MohammadSalmanIqbal,HajraShafi,andHajiJanMohammad,Defendants.

604821/2015

http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 1/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

Plaintiff'sAttorney:
KingAndSpalding,LLP
JamesE.Berger,Esq.
1185AvenueoftheAmericas
NewYork,NewYork10036

Defendants'Attorney:
Merle,Brown&Nakamura,P.C.
StephenNakamura,Esq.
90BroadStreet,Suite2201
NewYork,NewYork10004

VitoM.DeStefano,J.

Thefollowingpapersandtheattachmentsandexhibitstheretohavebeenreadonthemotions:

NoticeofMotion1
MemorandumofLawinSupport2
AffirmationinSupport3
AffirmationinOpposition4
MemorandumofLawinOpposition5
ReplyMemorandumofLaw6
AffirmationinReply7
OrdertoShowCause8
AffirmationinSupport9
AffirmationinOpposition10

InthisactiontorecognizeamoneyjudgmentoftheHighCourtoftheRepublicofSingapore(CPLR5303),the
plaintiffmoves(motionsequenceno.1)foranorderpursuanttoCPLR6210attachingtheNewYorkassetsofthe
http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 2/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

defendantSingaporejudgmentdebtors.Theplaintiffalsomoves(motionsequenceno.2)foranorder:"(1)deeming
thatserviceofprocessbyinternationalregisteredmailandinternationalcourieroftheSummons,Complaintandall
appendicesthereto,NoticeofMotionforOrderofAttachmentandallappendicesthereto,AffirmationofCharleneC.
SundatedJuly27,2015andallexhibitsthereto,andMemorandumofLawinSupportofMotionforOrderof
Attachment,aseffectuatedbyPlaintiff,isgoodandsufficient,or(2)permittingPlaintifftoservetheSummons,
Complaintandallappendicesthereto,AffirmationofCharleneC.SundatedJuly27,2015andallexhibitsthereto,
andMemorandumofLawinSupportofMotionforOrderofAttachment,upondefendantsbyemailandovernight
couriertodefendants'counsel,StephenH.NakamuraandGeorgeR.BrownofMerle,Brown&Nakamura,P.C."

Initially,thecourtnotesthattotheextenttheplaintiffseeksadeterminationregardingtheproprietyofservice
reputedlyeffectuatedundertheHagueConvention(motionsequenceno.2),suchreliefisunnecessaryand
premature.Inthisregard,andasheldbytheSecondDepartment,serviceofprocessbymailonpersonsabroadis
permissibleprovidedthattheStateofdesignationdoesnotobjectinitsratificationofsuchservice(Fernandezv
UnivanLeasing,15AD3d343[2dDept2005]).Pakistan,asignatorytotheHagueConvention,"hasnoobjectionto
suchservicebypostalchannelsdirectlytothepersonsconcerned"(http://travel.state.gov/content/travel/en/legal
considerations/judicial/country/pakistan.html).

Accordingly,servicemadeupondefendants"bypostalchannels"ispresumptivelyproper(seeEngelvLichterman
95AD2d536[2dDept1983]).Intheeventthattheproprietyofservicepursuanttothatmethodisproperly
challengedbyaffirmativedefenseorpreanswermotion,the[*2]courtwillmakeappropriatefindingsandrulingsin
duecourse(seegenerallyLenchyshynvPelkoElectric,Inc.,281AD2d42[4thDept2001]).

Thealternativereliefrequestedbytheplaintiff,towit,anorderpermittingalternativeservicepursuanttoCPLR
308(5),mustalsobedenied.First,assumingarguendothatthestatuteisapplicabletoserviceofpleadingsoutsideof

http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 3/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

thestateofNewYork(whichthecourtdoesnotdecideatthistime),asnoted,serviceonthedefendantswas
presumptivelyproper.Anorderdirectingthatalternativeservicebeaccomplishedwhenpriorserviceis
presumptivelyproper,is,therefore,unnecessary.Inanyevent,servicecannotbeconsideredtobeimpracticableby
othermeans.Themovingpapersandoppositionpaperswouldhavethecourtspeculateandrenderanadvisory
opinionontheissueofthepossibleinadequacyofservicealreadyeffectuated,whichthecourtisnotinclinedtodo.
Furthermore,thecourtnotesthatinnoeventcoulditauthorizealternativeservicethatwasincontraventionofthe
servicepermittedbytheHagueConvention.Significantly,noshowinghasbeenmadebytheplaintiffthatserviceon
theattorneyforthedefendantsbyemailorothermeansislawfulundertheHagueConvention.

Finally,thecourtaddsthatCPLR308(5)contemplatesamotionwithoutnotice.Theprocedureemployedhere
is,therefore,incorrect,aswasnotedbythecourtinconferencewiththeattorneys.

Regardingtheplaintiff'smotionforanorderofattachment,underCPLR6201[Groundsforattachment]:

[a]norderofattachmentmaybegrantedinanyaction,exceptamatrimonialaction,wheretheplaintiffhas
demandedandwouldbeentitled,inwholeorinpart,orinthealternative,toamoneyjudgmentagainstoneormore
defendants,when:

1.thedefendantisanondomiciliaryresidingwithoutthestate,orisaforeigncorporationnotqualifiedtodo
businessinthestateor

***

5.thecauseofactionisbasedonajudgment,decreeororderofacourtoftheUnitedStatesorofanyother
courtwhichisentitledtofullfaithandcreditinthisstate,oronajudgmentwhichqualifiesforrecognitionunderthe

http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 4/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

provisionsofarticle53.

Attachmentagainstanondomiciliaryhastwopurposes:tosecureassetsforamoneyjudgmentortoprovidea
basisforquasiinremjurisdiction(seeMaitrejeanvLevonPropertiesCorp.,45AD2d1020[2dDept1974]).
"Attachmentis***strictlyacreatureofstatuteand,therefore,becauseofitsharshnatureand,itbeingin
derogationofthecommonlaw,thecourtshavestrictlyconstruedthestatutecreatingitinfavorofthoseagainst
whomitmaybeemployed"(EltonLeatherCorp.vFirstGeneralRes.Co.,138AD2d132,135[1stDept1988]
quotingSiegelvNorthernBlvd.&80thSt.Corp.,31AD2d182,183[1stDept1968])."Thedecisionwhetherto
grantamotionforanorderofattachmentortoconfirmorvacatesuchanorderultimatelyrestswithinthesound
discretionofthecourt"(KrinetaEnters.Co.Ltd.vLavidas,48Misc3d1219(A)[SupremeCourtNYCounty2015]).

Theplaintiff'sapplication,thoughsatisfyingexplicitstatutoryrequirements(CPLR6201[1],[5]&6212[a]),
failstodemonstratethatanorderofattachmentisnecessaryforjurisdictionalpurposes.Significantly,attachment
effectedafterserviceofthesummonscannotserveasthepredicateforquasiinremjurisdiction(NemetskyvBanque
deDev.deLaRepubliqueDuNiger,48NY2d962[1979]126211NewYorkCivilPractice:CPLRP6211.04
["Whenanattachmentisusedforjurisdictionalpurposes,itisessentialthattheorderbegrantedbeforeserviceis
commenced']).Asnotedaboveinconnectionwithplaintiff'smotionconcerningserviceofthesummonsand
complaint,thepresumptiveregularityoftheserviceplaintiffhasaccomplishedrendersmeritlesstheplaintiff's
argumentconcerningthenecessityofattachmenttosecurejurisdiction.Moreover,thatactionspursuanttoCPLR
5303forenforcementofforeigncountrymoneyjudgmentshavebeen"exemptedfromthedueprocessrequirements
ofpersonaljurisdiction"(AbuDhabiCommercialBankPJSCvSaadTrading,117AD3d609[1stDept2014])
furtherunderminesplaintiff'sjurisdictionalargumentherein.

Notwithstanding,whereattachmentissoughttosecurepaymentofaforeignjudgmentthatislikelytobe
recognized,someshowingofnecessitylessthanwhatisrequiredforprejudgmentattachments,isrequired(eg

http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 5/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

NipponEmoTrans,Co.,Ltd.vEmoTrans,Inc.,744FSupp1215,1235[EDNY1990]).[FN1]

InKrinetaEnters.Co.Ltd.vLavidas(supra),theSupremeCourt,indecidingamotiontoconfirmanorderof
attachment,statedthefollowing,whichisrelevanttotheanalysishere:

Onamotiontoconfirmanorderofattachment,theplaintiffhastheburdenofestablishing"thatthereisacause
ofaction,thatitisprobablethattheplaintiffwillsucceedonthemerits,thatoneormoregroundsforattachment
providedinsection6201exist,andthattheamountdemandedfromthedefendantexceedsallcounterclaimsknown
totheplaintiff."CPLR6212(a)seeFordMotorCreditCo.vHickeyFordSales,Inc.,62NY2d291,465N.E.2d
330,[*3]476N.Y.S.2d791(1984)FabergeIntl.,Inc.vDiPino,109AD2d235,491N.Y.S.2d345(1stDept.1985)
ComputerStrategies,Inc.vCommodoreBusinessMachines,Inc.,105AD2d167,483N.Y.S.2d716(2ndDept.
1984).Inadditiontothestatutoryrequirementsforanattachment,theremustbesomeidentifiablenecessityforthe
attachment,suchasthe"riskthatthedefendantwillnotbeabletosatisfythejudgment."VisionChinaMediaInc.v
ShareholderRepresentativeServs.,LLC,109AD3d49,60,967N.Y.S.2d338(1stDept.2013).

Atbar,contrarytothecontentionsofthedefendants,theirconducthasgonebeyondmerelyrefusingtopayan
arbitralaward.Instead,defendantshaveattemptedto"unseat"theappointedarbitrator,threatenedhimwith
prosecutionforcontempt,thwartedissuanceoftheSingaporearbitrationawardbyobtaininginjunctivereliefin
Pakistanthejurisdictionwherethedefendantsarelocated,exhortedthePakistancourttodeclareNewYorkarbitral
enforcementproceedings"illegal"andorderthattheycease,andcontestedjurisdictioninNewYorkwhilefailingto
citebothNewYork'sliberaljurisdictionalpoliciesintermsofenforcementproceedingsunderCPLRArticle53,and
Pakistan'sauthorizationofservicebymailundertheHagueconvention(seeStarIndustriesInc.vInnovative
BeveragesInc.,2007NYMiscLEXIS8821[SupremeCourtNassauCounty2007][orderofattachmentgranted
consideringevidencethatdefendantsengagedincourseofconductdesignedtofrustratetheenforcementofmoney
judgment]).Thatthearbitralawardremainsunpaid,therefore,isbutoneindicationoftheneedforsecurity(see
http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 6/7
11/25/2015 PassportSpecialOpportunitiesMasterFund,L.P.vARYCommunications,Ltd.(2015NYSlipOp51696(U))

Siegel,PracticeCommentary,McKinney'sConsLawsofNY,Book7B,CPLR6201,atp.19["Thedefendant[a
foreignjudgmentdebtor]insuchcasesisanobvioussecurityriskbasedonnonpaymentoftheformerjudgment**
*andtheclaimisprimafaciemeritoriousbasedonthejudgmentitself."]).

Accordingly,itisorderedthatthebranchofthemotionforanorderofattachmentpursuanttoCPLR6210is
granted.Thecourtshallherewithissueanorderofattachmentintheformannexedtothemotionpapers,in
conformitywithCPLR6212theundertakingrequiredintheorderofattachmentshallbepostedasindicatedtherein.

Thisconstitutesthedecisionandorderofthecourt.

Dated:November17,2015

_____________________________
Hon.VitoM.DeStefano,J.S.C.

Footnotes

Footnote1:Arguably,thesameanalysisapplieswithrespecttoCPLR6201[1].

ReturntoDecisionList

http://www.courts.state.ny.us/reporter/3dseries/2015/2015_51696.htm 7/7