638 F. App'x 25
2d Cir.2015Background
- The Gates Plaintiffs (creditors with a default judgment against Syria from murders in Iraq) moved under Fed. R. Civ. P. 60(b)(4) to vacate a separate Baker Plaintiffs’ default judgment against Syria (from the 1985 EgyptAir hijacking).
- The Baker judgment was entered by a magistrate in D.D.C.; Syria later appeared and contested magistrate jurisdiction but ultimately dismissed its appeal.
- The Baker Plaintiffs registered their judgment in S.D.N.Y. and filed a turnover petition; interpleaded banks included the Gates Plaintiffs as claimants.
- The Gates Plaintiffs sought to vacate the Baker judgment in S.D.N.Y. as void; the district court denied their Rule 60(b)(4) motion and dismissed them from the turnover action.
- On appeal, the Second Circuit affirmed, holding the Gates Plaintiffs lacked standing to seek Rule 60(b) relief as non-parties without extraordinary connection to the underlying litigation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether non-party Gates Plaintiffs may invoke Rule 60(b) to vacate Baker judgment as void | Gates: their judgment interests against Syria justify Rule 60(b) relief to protect collection rights | Baker/Petition respondents: Rule 60(b) relief limited to parties or legal representatives; Gates lack standing | Denied — Gates lack standing; Rule 60(b) applies only to parties or extraordinarily connected non-parties (not present here) |
| Whether the district court’s denial of Rule 60(b)(4) should be reviewed de novo or for abuse of discretion | Gates: judgment is void so should be reviewed de novo on voidness question | Respondents: standard applies but standing threshold dispositive | Court: underlying voidness review is de novo, but resolved on standing (no relief) |
Key Cases Cited
- Johnson ex rel. United States v. University of Rochester Med. Ctr., 642 F.3d 121 (2d Cir. 2011) (standard of review for Rule 60(b) motions)
- Central Vt. Pub. Serv. Corp. v. Herbert, 341 F.3d 186 (2d Cir. 2003) (de novo review for voidness challenges under Rule 60(b)(4))
- Dunlop v. Pan Am. World Airways, Inc., 672 F.2d 1044 (2d Cir. 1982) (permitting Rule 60(b) relief for non-parties sufficiently connected to the litigation)
- Grace v. Bank Leumi Trust Co. of New York, 443 F.3d 180 (2d Cir. 2006) (extending Rule 60(b) standing to a third party strongly affected by a judgment under narrow facts)
- Shumway v. United Parcel Serv., Inc., 118 F.3d 60 (2d Cir. 1997) (appellate courts may affirm on any ground in the record)
- Gates v. Syrian Arab Republic, 580 F. Supp. 2d 53 (D.D.C. 2008) (underlying Gates judgment against Syria)
- Baker v. Socialist People’s Libyan Arab Jamahirya, 775 F. Supp. 2d 48 (D.D.C. 2011) (Baker default judgment)
- Baker v. Socialist People’s Libyan Arab Jamahirya, 810 F. Supp. 2d 90 (D.D.C. 2011) (magistrate judge’s rejection of Syria’s consent-to-magistrate jurisdiction argument)