Legal Document

128 S. Ct. 2180 (2008) REPUBLIC OF The PHILIPPINES, et al., Petitioners, v. Jerry PIMENTEL, Temporary Administrator of the Estate Mariano J. Pimentel, Deceased, al. No. 06-1204. Supreme Court United States. Argued March 17, 2008. Decided June 12, *2183 Charles A. Rothfeld, for petitioners. Edwin Kneedler States as amicus curiae, by special leave Court, supporting Robert Swift, respondents. Stephen V. Bomse, Counsel Record, Joshua E. Rosenkranz, Rachel M. Jones, Adam Gromfin, Heller Ehrman LLP, *2184 San Francisco, CA, Petitioners Republic Philippines and PCGG, Kenneth Geller, David Gossett, Elizabeth G. Oyer, Brian D. Netter, Mayer Brown Washington, DC, Philippine National Bank Arelma, Inc. Craig W. Hillwig, Kohn, & Graf, P.C., Philadelphia, PA, Sherry P. Broder, Honolulu, HI, Jon Van Dyke, Respondent Pimentel Class Human Rights Victims. Justice KENNEDY delivered opinion Court. This case turns on interpretation proper application Rule 19 Federal Rules Civil Procedure requires us to address Rule's operation in context foreign sovereign immunity. interpleader action was commenced determine ownership property allegedly stolen Ferdinand Marcos when he President Philippines. Two entities named suit invoked They are Presidential Commission Good Governance, referred turn Commission. were dismissed, but proceeded judgment over their objection. Together with two parties who remained suit, now insist it error allow litigation proceed. Under 19, they contend, should have been dismissed once became clear could not be joined without consent. Appeals Ninth Circuit, agreeing District held proceed parties. Among reasons gave that absent, would prevail claims. We conclude insufficient weight status Commission, court further erred reaching discounting merits I A When is consulted, reader will find its quotations from do accord text set out here; after before came here, changed. Committee advised changes stylistic only, see Advisory Committee's Notes 2007 Amendment Fed. Civ. Proc. 28 U.S.C. A., p. 168 (2008); we agree. These three relevant changes. First, word "required" replaced "necessary" subparagraph (a). Second, 1966 factors longer clauses sets affecting joinder separate lettered headings. Third, "indispensable," which had a remnant pre-1966 Rule, altogether deleted current text. Though "indispensable" lesser place still latent potential mislead. As substance both pre- post-2007 unchanged, refer present, revised *2185 version. pre-2007 version printed Appendix this opinion. states, part, follows: "Rule 19. Required Joinder Parties. "(a) Persons Be Joined if Feasible. "(1) Party. person subject service process whose deprive subject-matter jurisdiction must party if: "(A) person's absence, cannot complete relief among existing parties; or "(B) claims an interest relating so situated disposing absence may: "(i) practical matter impair impede ability protect interest; "(ii) substantial risk incurring double, multiple, otherwise inconsistent obligations because interest. "(2) Order. If has required, order made party. refuses join plaintiff may either defendant or, case, involuntary plaintiff. "(3) Venue. objects venue make improper, dismiss "(b) Is Not required feasible joined, whether, equity good conscience, dismissed. consider include: extent rendered might prejudice any lessened avoided by: protective provisions judgment; shaping relief; "(C) other measures; whether adequate; "(4) adequate remedy nonjoinder." 19(a)-(b). See also 19(c) (imposing pleading requirements); 19(d) (creating exception class actions). B In 1972, Marcos, then Republic, incorporated S.A. (Arelma), under Panamanian law. Around same time, Arelma opened brokerage account Merrill Lynch, Pierce, Fenner Smith (Merrill Lynch) New York, deposited $2 million. year 2000, grown approximately $35 Alleged crimes misfeasance during his presidency worldwide attention protest. behalf some 9,539 human rights victims filed against estate, others. tried Hawaii resulted nearly billion class. Hilao 103 F.3d 767 (C.A.9 *2186 1996). members related action, Roger Roxas Golden Budha [sic] Corporation (the claimants) claim right execute assets satisfy own Marcos' widow, Imelda Marcos. 89 Hawai`i 91, 113-115, 969 P.2d 1209, 1231-1233 (1998). enforce attaching Lynch. 1955 law providing derived misuse public office forfeited moment misappropriation. An Act Declaring Forfeiture Favor State Any Property Found To Have Been Unlawfully Acquired Public Officer Employee Providing Proceedings Therefor, Rep. 1379, 51:9 O.G. 4457 (June 18, 1955). After fled 1986, created recover wrongfully took. Almost immediately asked Swiss Government assistance recovering assetsincluding shares Arelmathat moved Switzerland. compliance froze certain and, 1990, freeze upheld 1991, Sandiganbayan, corruption cases, declare obtained through office. That pending Sandiganbayan. transferred escrow up at Banc (PNB), Sandiganbayan's decision rightful owner. requested Lynch follow course transfer PNB. did so. Facing various creditors, including class, instead § 1335. defendants were, others, PNB, respondents here). Judge Manuel Real Central California, sitting designation Judicial Panel Multidistrict Litigation consolidated complaints court. Hilao, supra, 771. directed file Hawaii, presided matter. being asserted immunity Foreign Sovereign Immunities 1976 (FSIA), 1604. pursuant 19(b), based premise them. PNB 19(b). Without addressing entitled immunity, initially rejected request action. appealed, reversed. It 19(a) (or old terminology). re Philippines, 309 1143, *2187 1149-1152 2002). entered stay outcome Sandiganbayan assets. id., 1152-1153. concluding entitlement assets, vacated stay, allowed proceed, awarded week later, initiated forfeited, arguing ripe decision. yet ruled. appealed Court's favor claimants. time affirmed. ENC Corp., 464 885 2006). Dismissal held, warranted 19(b) because, though ("necessary") 19(a), little likelihood success One barred York's 6-year statute limitations involving misappropriation property. N.Y. Prac. Law Ann. 213 (West Supp.2008). thus found unnecessary form interim decree considered failure obtain Sandiganbayandespite share certificates having located since 1997-1998to equitable consideration counseling dismissal suit. allowing serve interests which, point, likely no available forum belonging granted certiorari. 552 U.S. ___, 705, 169 L. Ed. 2d (2007). II begin question certiorari: Whether successful assertion appeal determination absence; seek review Appeals' affirming ibid. Respondents contend reviewed them; continue, instant proceeding us. Brief 21. implying correct saying neither nor become need rule point. Other us, They, too, *2188 denial motion, petitioners general move sua sponte join. See, e.g., Minnesota Northern Securities Co., 184 199, 235, 22 308, 46 499 (1902); Provident Tradesmens Trust Co. Patterson, 390 102, 111, 88 733, 936 (1968). argue, however, standing raise lost underlying interpleaded Appeals. By failing petition certiorari ruling, abandoned therefore lack concrete stake proceedings. disagree. benefit vacating denying them seeks entirety procedural grounds does lose simply order. III Subdivision (a) states principles persons instructs nonjoinder even always result dismissal. opens noting addresses "if Feasible." Where feasible, outlined subdivision (b). considerations forth (b) nonexclusive, introductory statement "[t]he include." direction "in dismissed." Ibid. design then, indicates upon specific, consistent considerations. fact may, must, consequences affected judicial system integrity processes respect accorded decrees; society concern fair prompt resolution disputes. Illinois Brick Illinois, 431 720, 737-739, 97 2061, 52 707 (1977). For these reasons, issue can complex, determinations specific. Bank, 118-119, 733. earlier term "indispensable party" implied rigidity tension case-specific approach. unforgiving connotation fit easily permits actions joined. noted use *2189 "verbal anomaly" dispensable all." U.S., 117, n. changed, new extent, tension. all. all events multiple bear person. "must varying different such substantive, procedural, compelling themselves, balancing opposing interests." Id., 119, IV relates case. contested. "[w]ithout [them] protected." F.3d, 1152; 19(a)(1)(B)(i). All appear concede this. disagreement centers around (b), given addressed standard decisions. inquiry followed applying standards conscience" implies degree deference district implicit rulings, explicit Appeals, errors require reversal. Whatever appropriate review, point decide, stand. Cf. Koon States, 518 81, 99-100, 116 2035, 135 392 (1996) (a "by definition abuses discretion makes law"). giving necessary absent entities' effect decided Commission's Once recognized those frivolous, court's itself infringement immunity; event, analysis flawed. discuss first how factor explain suggested confirmed our factorthe parties, 19(b)(1)the incorrect. considering prejudiced status. doctrine early history Nation. premised "perfect equality absolute independence *2190 sovereigns, th[e] common impelling mutual intercourse." Schooner Exchange McFaddon, 7 Cranch 116, 137, 3 287 (1812). observed designed "give instrumentalities protection inconvenience suit," Dole Food Patrickson, 538 468, 479, 123 1655, 155 643 (2003). privilege codified federal statute. FSIA, §§ 1330, 1602-1611, provides "a state shall immune courts except provided sections 1605 1607," international agreements contrary. 1604; Verlinden B.V. Nigeria, 461 480, 486-489, 1962, 76 81 (1983) (explaining doctrine's codification). Exceptions principle contained 1605-1607 inapplicable least invoke Immunity uncontested; ruling issue, ground. failed give full Giving promotes comity contributed development doctrine. 486, 1962 ("[F]oreign grace comity"); City China, 348 356, 362, 7, 75 423, 99 389 (1955) (foreign derives "standards morality, dealing, reciprocal self-interest, `power dignity' sovereign" (quoting Exchange, 136-137, 143-144)). Comity dignity take arise historical political significance people. unique resolving determining if, how, used compensate suffered grievous injury There dispute enhanced nations bypass cause. Then, there more specific affront seized Mexico Hoffman, 324 30, 35-36, 65 530, 729 (1945) (pre-FSIA, common-law dictated defer executive seizure" friendly regarded "an may. . affect relations it"). posing precise presented authorities intersection governmental Mine Safety Appliances Forrestal, 326 371, 373-375, 66 219, 90 140 (dismissing where Secretary Navy sued official capacity, entity *2191 withheld consent sued); 305 382, 386-388, 59 292, 83 235 (1939) owner land consented suit). cases somewhat perfunctory, holdings clear: required-entity amenable instruct asserted, ordered sovereign. accordingly undertaking asserts frivolous. instance leeway 19(a)(1), defining go forward nonetheless, disregard frivolous claim. Here, frivolous; determined succeed York. necessarily rules owns stock law, York applicable instance, judgment, pursue assumed would. instead, alternative, breach contract argue start run refused hand Supp.2008); Ely-Cruikshank Montreal, N.Y.2d 399, 402, 599 N.Y.S.2d 501, 615 N.E.2d 985, 986 (1993) ("In cause accrues breach"). Or bring judgment. 1 Restatement (Third) Relations 482, Comment (1986) (jurisdiction rendering presumed); d (providing exceptions here); 2467(c) enforcement forfeiture judgments circumstances). arguments why succeed, Amicus Curiae 26-27, respond, Reply 14-18; 24-28. predict outcomes. suffices comments indicate, applied vacuum, preliminary assessment example, directs court, person, afforded absence. 19(a)(1)(A). Likewise, inquiry, examine, *2192 persons. improper definitive holding regarding nonfrivolous, substantive much diminished important consequential sovereign's determined, assumed, explained above, ignored incur. most directly implicates 19(b)'s factor, discussed entities. discount class' damages Furthermore, combating significant policy. policy manifested treaties cooperation Nations Convention Against Corruption, Res. 5814, chs. V, U.N. Doc. A/RES/58/4, pp. 22, 32 (Dec. 11, 2003) (reprinted 43 I.L.M. 37 (2004)); Treaty Mutual Legal Assistance Criminal Matters Art. 16, Nov. 13, 1994, 104-18 (1995). support it. But underscores concerns implicated asserting too Based second measures alternative dismissal, 19(b)(2)there argument No remedies forms proposed available. C. Wright, Miller, Kane, Practice 1608, 106-110 (3d ed.2001) (collecting using relief, granting money rather than performance, declaratory payment suits party). estate now, fails; events, equally valid competing claims, adjudication Farm Fire Casualty Tashire, 386 523, 534, 87 1199, 18 270 (1967); Russell Clark's Executors, 69, 98-99, 271 (1812) (Marshall, J.); Wichita Affiliated Tribes Okla. Hodel, 788 F.2d 765, 774 (C.A.D.C.1986) ("Conflicting beneficiaries trust present textbook example one severely absence" (citing *2193 Williams Bankhead, Wall. 563, 570-571, (1874))). C third factor adequate, 19(b)(3)the understood "adequacy" satisfaction adequacy refers "public settling disputes wholes, whenever possible." "social efficient administration justice avoidance litigation" "traditionally thought compulsory potentially adverse claimants." 737-738, 2061. Going whole bound D fourth nonjoinder, 19(b)(4)the what tort victims' seems assume statutory stakeholder true that, often neutral outcome, while press manner insufficient, though, overcome 1335(a) (conditioning part "the property" "given bond payable clerk amount surety judge deem proper"). ignore context, (and indeed comparable plaintiffs noninterpleader cases. Their irrelevant balance; ones consult. stakeholder, loses disburse done urges, leaves remedy, "could forced defend lawsuits claimants jurisdictions, possibly leading judgments." 14. ground respects. disposition provide effective defense piecemeal inconsistent, conflicting judgments. matters presently stand, later again assert purpose interpleader, prevent *2194 pay regard outweighed invoking mean, instances, left contemplated Verlinden, 497, ("[I]f determines none applies, raising States"). V sufficient would, usual course, warrant reversal remand additional lead waited years compensated wrongs, immediate way And balance equities change due course. occur appears within reasonable period time. ruling. less now. courts; considered; note elect commence light changed circumstances, arose, jurisdictional requirements satisfied elsewhere. * Circuit reversed, remanded instructions inter-pleader ordered. APPENDIX issued Amendments effective. 885, 891 adopted Needed Just Adjudication (1) already (2) *2195 (i) (ii) reason claimed so, defendant, render Determination Whenever described (a)(1)-(2) hereof party, conscience it, indispensable. first, prejudicial second, measures, avoided; third, fourth, nonjoinder. "(c) Pleading Reasons Nonjoinder. names, known pleader, prescribed "(d) Exception Actions. 23." STEVENS, concurring dissenting part. While Part agree affirm Procedure, believe reverse virtually insuperable obstacle petitioners' recovery reverse. not, near-dispositive (Republic) Governance's (Commission) entities, ordering outright my proceedings reasonably reassigned conduct is, unfairness conducting participation avoid waiving record basis believing judge. *2196 until denied motion seeking venue, act grounds, recusal Judge. App. 9; 2-3 (docket entries). advanced factual suspecting Judge's impartiality questioned. Memorandum Support Motions Dismiss, Transfer Stay, Recusal 23-28 CV00-595MLR (D.Haw.). facts demonstrate "have difficulty putting her mind previously-expressed views." California Montrose Chemical Corp. 104 1507, 1521 1997) reassign case; internal quotation marks omitted). appears, summoned attorney representing meeting chambers Los Angeles September learning sought funds During proceedings, him deposit despite attorney's forum. ante, 2186-2187; Tr. 6 (Sept. 2000). 14, sealed file, making difficult Affidavit Richard Martin Transfer, Stay Submitted (D.Haw.), ¶ 6-7, 11. be-speak level personal involvement desire control create colorable about impartiality. following "real interest." 1148 reversed enter 1153; months. basis, presumably increased possibility fairly Republic's position merits. Upon reassignment, choose between defending open. wish hold hearing owned disputed conveyed 1972. assumes "not frivolous," 2191, record, preclude creditors meritless unrelated limitations. Further, mandated interpreted Harlan's *2197 (1968), several suggest ordinary affirmative steps Attorney General 27) Thus, here magnitude faces liability; choosing convenient past decades, participated interposing Indeed, 1987 brief led entry respondents' Marcos; urged (later consolidated) "to Plaintiffs evidence gross violations Court." RA-1. notwithstanding come assetsassets acquired Nos. 04-16401, 04-16503, 04-16538(CA9), 9 ("Under resulting office, bribery, corruption, officials forfeit generated"); Pet. 0141 (Sandiganbayon) (filed 1991) (seeking large number assets). Even believed ill gotten, theory approached received. Either encouraging futile purely symbolic litigation, access portion vast sum, am persuaded today represents "inflexible approach" contemplates. Provident, 107, handle expeditious fashion requiring brand proceeding. suggests another Courtpresumably Yorkif litigation. 2194. solution put Judge, initiation unnecessarily delay final resolution. Accordingly, respectfully dissent. SOUTER, Parts IV-B differ conclusion simplify issues raised clearly correct. vacate *2198 await expected, decide next step fresh

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