Judicial Assistance

• Author: International Law Group

The claimant, Motorola Credit Corp., is a large multinational U. S. company that, with its affiliates, is active inter alia in the global sale of cellular telephone equipment. The defendants are four members of a wealthy and powerful Turkish family who (among other substantial business interests) own a telecommunications company, Telsim Mobil Telekomunikayson Hizmetleri A.S. (Telsim). It is the second largest supplier of mobile telephone services in Turkey. Defendant #2 (D2) is the patriarch of the family while D1 and D3 are his sons, and D4 his daughter.

In January 2002, claimant (and Nokia, another international telecommunications company) sued Telsim in a New York federal court (the U.S. Action). Claimant alleged that D1-D4 conspired to fraudulently persuade claimant to agree to various forms of financing Telsim. Under these arrangements, claimant advanced very large sums of money to make it possible for Telsim (1) to buy cellular infrastructure telephone equipment from companies within the Motorola group of companies and (2) to obtain a license to operate Telsim's cellular telephone system in Turkey. The claimant alleged, inter alia, that each of the defendants borrowed large sums with no intention of repaying the loans and that each is personally liable for the whole outstanding amount. Claimant also brought similar suits against Telsim in the courts of England, Germany, France, Bermuda and the Channel Islands.

In April 2002, District Judge Jed Rakoff held a 6-day inter partes hearing involving oral testimony (though not from the defendants personally) upon the claimant's and Nokia's application in the U.S. Action for a preliminary injunction and attachment order. Judge Rakoff granted that relief on May 9, 2002, ordering, inter alia, that defendants deposit with the court many shares of Telsim as collateral.

He found that: "The plaintiffs have clearly demonstrated that they are substantially likely to succeed on the merits of their claims, and have further demonstrated that very serious damage is likely to result if the requested relief is not granted." [¶ 12] Defendants failed to comply with any of the New York court's orders. In the English Commercial Court, claimant, on May 30, obtained the instant worldwide freezing order against the global assets of the four Turkish defendants in aid of the U.S. Action. The order contained the customary provisions ordering the defendants to provide asset information. The first instance judge...