In Re Application of GORSOAN LIMITED and GAZPROMBANK OJSC for an Order Pursuant…

Background

Gorsoan Limited and Gazprombank OJSC sought discovery from Janna Bullock under 28 U.S.C. § 1782 for use in a lawsuit in Cyprus. That lawsuit alleged that defendants diverted more than $20 million in bond proceeds between 2005 and 2008. The Cyprus court had frozen Bullock’s assets worldwide and required her to disclose assets worth more than 10,000 euros.

The discovery dispute had a lengthy history. Earlier courts approved discovery concerning Bullock’s assets, and the Second Circuit affirmed that earlier ruling. After Bullock’s deposition and later disclosures raised questions about whether she had fully complied with her discovery obligations, the court required additional production. The additional requests sought bank-account statements, documents about 17 assets or payment obligations, and documents concerning the Landmark Trust.

On November 23, 2020, the court largely granted Gorsoan’s request for the additional discovery. Bullock did not appeal that order. Afterward, the Second Circuit issued a decision in a related proceeding concluding that a possible future contempt motion in Cyprus was too remote, by itself, to satisfy § 1782’s “for use” requirement. Gorsoan then stated that it no longer intended to file a contempt motion. Bullock asked the court to reconsider the November order and to require Gorsoan to destroy the documents already produced.

Legal Standard and Analysis

Section 1782 permits a federal court to order discovery for use in a proceeding before a foreign tribunal. The court explained that “for use” requires more than relevance: the applicant must show that the evidence can actually be used with some advantage in the foreign proceeding.

The court agreed that the “for use” requirement was statutory and jurisdictional, meaning it concerned the court’s authority to grant the discovery. Therefore, Bullock’s failure to appeal the earlier order did not prevent the court from examining whether the statutory requirement was satisfied.

After reviewing the record, however, the court concluded that the discovery met the requirement. The Second Circuit had previously upheld discovery into Bullock’s assets even though the documents postdated the alleged fraud by several years. The court determined that the new requests sought the same type of information and merely extended the time period from 2016 to 2020.

The court also identified potential uses in the Cyprus trial. Asset information could help trace the allegedly diverted bond proceeds, show whether assets were moved or hidden, and bear on Bullock’s credibility and role in the alleged scheme. In addition, the court found that Bullock’s conduct—including her testimony and delayed disclosures—supported requiring additional documents to determine whether she had truthfully complied with the court’s orders.

Ruling

Judge Richard J. Sullivan denied Bullock’s request for reconsideration. The court reaffirmed its prior decision that Gorsoan’s requests concerning the 17 alleged assets and six banks were for use in a foreign proceeding. Because document production was complete and Gorsoan had withdrawn its request for another deposition, the court directed the Clerk of Court to close the case.