Kuwait Ports Authority v. Crowell & Moring LLP

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA IN RE APPLICATION OF KUWAIT ) PORTS AUTHORITY AND THE PUBLIC ) INSTITUTE FOR SOCIAL SECURITY FOR ) Civil Case No. 22-mc-64 (RJL) AN ORDER TO TAKE DISCOVERY ) FOR USE IN FOREIGN PROCEEDINGS ) PURSUANT TO 28 U.S.C. § 1782 )

MEMORANDUM OPINION '4..-- May 2.1, 2025 [Dkt. #1] Petitioners Kuwait Ports Authority and the Public Institution for Social Security (together, "petitioners") seek an order pursuant to 28 U.S.C. § 1782 to compel discovery from Crowell & Morning LLP ("Crowell"), David Hammond, and Justin Kingsolver for use in a Cayman Islands action. Presently before the Court is petitioners' Application for Discovery for Use in a Foreign Proceeding. See Application [Dkt. #1]. Magistrate Judge Meriweather issued a Report and Recommendation, recommending that the Court grant petitioners' application. Upon consideration of the Report and Recommendation, the parties' briefing, and the applicable case law and legal standards, the Court ADOPTS the Report and Recommendation [Dkt. #23] and GRANTS petitioners' Application for Discovery for Use in a Foreign Proceeding [Dkt. #1].

BACKGROUND Petitioners filed suit in the Grand Court of the Cayman Islands, Financial Services Division, alleging that the general partner of the Port Fund, L.P. (for which both applicants are limited partners), in concert with its principal, affiliates and certain third parties, breached certain duties to the Port Fund by improperly using and diverting money belonging to the Port Fund. Application ,r,r 1-2; Application Appendix 1 ("Reamended Statement of Claim") [Dkt. #1-1]; Application Appendix 6 ("Fox Deel.") [Dkt. #1-1] ,r,r 2- 8. Crowell acted as counsel for "the Port Fund, its general partner, and affiliated parties in connection with certain transactions and proceedings underlying petitioners' direct and derivative claims in the Cayman action." Application ,r 3; Fox Deel. ,r 14.

Petitioners seek to obtain discovery regarding three issues in the pending Cayman action. The first concerns an allegedly sham court case in the Dubai International Financial Centre where Crowell advised on the proceeding. Application ,r,r 27-50. The second c0ncerns allegedly unlawful payments that Crowell made on behalf of its elient. Id. ,r,r 51- 64. And the third concerns payments to lawyers, lobbyists, public relations consultants, and other third parties that Crowell issued. Id. ,r,r 65-74. Petitioners alleged that "at least a substantial portion of these payments were not for the benefit of and, in some instances, were contrary to the interests of the Port Fund." Id. ,r 65.

On July 5, 2022, petitioners filed their Application for Discovery for Use in a Foreign Proceeding. See Application [Dkt. #1]. I referred the case to a magistrate judge for a Report and Recommendation. August 30, 2022 Minute Order.

While the application was pending before Magistrate Judge Meriweather, Crowell intervened "for the limited purpose of correcting the misstatement of facts by Petitioners," specifically to assert that the application was contested. Mot. to Interv. [Dkt. #12] at 1.

Magistrate Judge Meriweather granted Crowell's request to intervene. September 1, 2023 Minute Order. Crowell, however, did not file a formal response to the application. See