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Keywords

tortplaintiffdefendantdamagesliabilitytestimonysummary judgmenttrustconstructive trustact of state doctrine
plaintiffdefendantdamagesliabilityinjunctionappealmotionsummary judgmentmotion for summary judgmentact of state doctrine

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Republic of Haiti v. Duvalier, 211 A.D.2d 379, 626 N.Y.S.2d 472

Facts

This case arose after the fall of the Duvalier regime in Haiti, with the Republic of Haiti seeking to recover over $5.5 million allegedly embezzled by the defendant and her husband during his dictatorship from 1980 to 1986. The plaintiff claimed that the defendant, as an accomplice, had secreted these funds in foreign accounts, including those in New York City. The action was initiated approximately six months after the Duvaliers were ousted from power, and the plaintiff sought a constructive trust on the funds held in the defendant's accounts.

This action by plaintiff Haiti seeks to recover monies allegedly embezzled by defendant and her husband, Jean–Claude 'Baby Doc' Duvalier, during the last six years, 1980–86, of his reign as dictator of Haiti.

Issue

Whether the Republic of Haiti's conversion claim against the defendant could be adjudicated in New York courts and whether the plaintiff established its claim prima facie for summary judgment.

The issues remaining on this appeal then are whether plaintiff Haiti's conversion claim may be adjudicated in the courts of this state, and if so, whether Haiti has established its claim prima facie such that summary judgment is warranted.

Rule

The act of state doctrine does not bar adjudication of claims in U.S. courts when the foreign sovereign is seeking recovery and the regime that committed the act is no longer in power. Additionally, the tort of conversion is established when the owner proves unauthorized possession of their property by another.

The act of state doctrine prevents the judiciary from intruding into the domain of the President and Congress in their management of foreign policy and relations.

Analysis

The court found that the act of state doctrine was not applicable since the Republic of Haiti was seeking recovery of its assets and the regime responsible for the alleged acts was no longer in existence. The plaintiff provided sufficient evidence to establish a prima facie case of conversion, demonstrating that the funds in question were public monies that had been improperly deposited into the defendant's personal accounts. The court noted that the evidence included testimony from Haitian officials and the tracing of funds back to government sources, which supported the claim of conversion.

The court found that the act of state doctrine was not applicable since the Republic of Haiti was seeking recovery of its assets and the regime responsible for the alleged acts was no longer in existence.

Conclusion

The Appellate Division reversed the lower court's decision, granting partial summary judgment for the Republic of Haiti on the issue of liability for conversion and remanding the case for a determination of damages.

Accordingly, the order of the Supreme Court, New York County (Lewis R. Friedman, J.), entered on or about February 1, 1994, which denied plaintiff's CPLR 3212 motion for summary judgment and granted defendant's cross-motion for summary judgment, dismissed the action, and dissolved the preliminary injunction entered in this case, reversed, on the law, with costs, plaintiff granted partial summary judgment as to liability and remanded for assessment of damages.

Who won?

The Republic of Haiti prevailed in the case because the court found that it had established a prima facie case of conversion against the defendant, supported by substantial evidence of the improper handling of public funds.

Reversed, partial summary judgment for plaintiff granted, and remanded.

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