CORMAC J. CARNEY, UNITED STATES DISTRICT JUDGE.
Plaintiff Carlo Moersch, a citizen of Luxembourg, brings this action against Defendant Charles S. Zahedi, a citizen of California, under the Uniform Foreign Country Money Judgments Recognition Act ("the Uniform Act"), California Civil Procedure Code §§ 1713 et seq. (See generally Dkt. 1.) Plaintiff seeks recognition of a foreign judgment he obtained in Luxembourg against Defendant due to Defendant's apparent breach of a partnership agreement. (Id. ¶¶ 7-9, 16-17.) Before the Court is Plaintiff's motion for summary judgment. (Dkt. 19 [Notice of Motion]; Dkt. 22 [Memorandum of Points and Authorities].) For the following reasons, the motion is GRANTED.
In or about 2003, Plaintiff and Defendant were working as dentists in private practice in Luxembourg. (Dkt. 27-2 ¶¶ 1, 2.) Plaintiff and Defendant had entered into a partnership agreement in or about December 2002, which, among other things, required the parties to disclose to one another all patients they treated. (Id. ¶ 3.) Plaintiff brought a civil action against Defendant in La Cour Superieure de Justice in Luxembourg seeking to terminate the partnership and obtain damages due to Defendant's alleged breach of the agreement. (Id. ¶ 4; Dkt. 20 [Declaration of Jonathan Capp, hereinafter "Capp Decl."] ¶ 2; id. Ex. A at 2.) La Cour Superieure de Justice found in favor of Defendant on June 17, 2009. (Dkt. 27-2 ¶ 6; see id. Ex. A at 2.)
On March 21, 2012, the Luxembourg Court of Appeal reversed the lower court ruling and entered a judgment in Plaintiff's favor, which was formally entered on April 2, 2012 (the "2012 Judgment"). (Capp Decl. ¶ 2; see generally id. Ex. A.) The Luxembourg Court of Appeal determined that Defendant had been treating patients without Plaintiff's knowledge and "poaching" other patients. (Id.) It therefore terminated the partnership and ordered Defendant to pay Plaintiff 300,000 euros under Article 15 of the partnership agreement, which it noted the parties agreed was "to be interpreted as a penalty clause." (Id. Ex. A at 3.) The Court of Appeal explained that:
(Id.) The Court of Appeal found that Article 15 was "clearly not excessive" and declined to reduce the award. (Id. Ex. A at 4.) It also awarded Plaintiff an additional
The Court may grant summary judgment on "each claim or defense — or the part of each claim or defense — on which summary judgment is sought." Fed. R. Civ. P. 56(a). Summary judgment is proper where the pleadings, the discovery and disclosure materials on file, and any affidavits show that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Id.; see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The party seeking summary judgment bears the initial burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp., 477 U.S. at 325, 106 S.Ct. 2548. A factual issue is "genuine" when there is sufficient evidence such that a reasonable trier of fact could resolve the issue in the nonmovant's favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A fact is "material" when its resolution might affect the outcome of the suit under the governing law, and is determined by looking to the substantive law. Id. "Factual disputes that are irrelevant or unnecessary will not be counted." Id. at 249, 106 S.Ct. 2505.
In considering a motion for summary judgment, the court must examine all the evidence in the light most favorable to the non-moving party and draw all justifiable inferences in its favor. Anderson, 477 U.S. at 252, 106 S.Ct. 2505; United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962); T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass'n, 809 F.2d 626, 630-31 (9th Cir. 1987). However, the "mere existence of a scintilla of evidence" is "insufficient; there must be evidence on which the jury could reasonably find for the [opposing party]." Anderson, 477 U.S. at 252, 106 S.Ct. 2505. Conclusory and speculative testimony in affidavits and moving papers is insufficient to raise triable issues of fact and defeat summary judgment. Thornhill Pub. Co., Inc. v. GTE Corp., 594 F.2d 730, 738 (9th Cir. 1979). The evidence the parties present must also be admissible. Fed. R. Civ. P. 56(c).
Under the Uniform Act, California recognizes a foreign-country judgment to the extent that it both: "(1) Grants or denies recovery of a sum of money" and "(2) Under the law of the foreign country where rendered, is final, conclusive, and enforceable." Cal. Civ. Proc. Code §§ 1715(a)(1)-(2); 1716(a). The purpose of the Uniform Act was "to codify the most prevalent common law rules for recognizing foreign money judgments and thereby encourage the reciprocal recognition of United States judgments in other countries." Manco Contracting Co. (W.W.L.) v. Bezdikian, 45 Cal.4th 192, 198, 85 Cal.Rptr.3d 233, 195 P.3d 604 (2008).
The Uniform Act excludes the following, however: (1) "A judgment for taxes," (2) "A fine or other penalty," and (3) "A judgment for divorce, support, or maintenance, or other judgment rendered in connection with domestic relations." Cal. Civ. Proc. Code § 1715 (b)(1)-(3). The Act also provides that courts shall not recognize a foreign-country judgment if (1) it was rendered under a judicial system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law, (2) if the foreign court did not have personal jurisdiction over the defendant, or (3) if the foreign court did
Under the Uniform Act, "[t]he party seeking recognition of a foreign-country money judgment has the burden to establish entitlement to recognition under the Act, while the party resisting recognition has the burden of establishing a specified ground for nonrecognition." Hyundai Sec. Co. v. Lee, 232 Cal.App.4th 1379, 1386, 182 Cal.Rptr.3d 264 (2015), as modified (Jan. 14, 2015), review denied (Apr. 29, 2015) (citing Cal. Civ. Proc. Code §§ 1715(c), 1716(d)).
Here, Plaintiff has satisfied his burden of demonstrating grounds for recognition of the 2012 Judgment under the Uniform Act. Plaintiff has presented evidence that the Luxembourg Court of Appeal issued a judgment in his favor which grants recovery of a sum of money — 310,000 euros, or $413,075.
Instead, Defendant claims that pursuant to Federal Rule of Civil Procedure 56(d), the Court should defer considering this motion, deny it, or allow additional time for discovery. (Dkt. 27 at 6.) Rule 56(d) grants district courts discretion to provide such relief where "a nonmovant shows by affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition." "An affidavit or declaration used to support or oppose a motion must be made on personal knowledge, set out facts that would be admissible in evidence, and show that the affiant or declarant is competent to testify on the matters stated." Fed. R. Civ. P. 56(c)(4). Defendant's declaration is inadmissible, since it does not attest that it is based on personal knowledge or show that Defendant is competent to testify on the
Even if the Court were to accept Defendant's declaration, it would not suffice for purposes of Rule 56(d) because it never explains why Defendant needed additional time to present his defense. "`[W]here [a party] failed to exercise due diligence, filed an untimely request, or failed to explain why discovery was not conducted, Rule 56(d) discovery requests may be denied.'" Buchanan v. Lowe's Home Centers, LLC, No. LACV1407560JAKFFMX, 2015 WL 12661944, at *6 (C.D. Cal. Aug. 17, 2015) (quoting Freeman v. ABC Legal Servs. Inc., 827 F.Supp.2d 1065, 1078 (N.D. Cal. 2011)); see also Johnson v. Hewlett-Packard Co., 546 Fed.Appx. 613, 615 (9th Cir. 2013) ("Even though we are not convinced that amendment of the complaint was required to support the discovery sought by Appellants, we affirm the district court's denial of their requests under Rule 56(d) for failure to demonstrate diligence."). Defendant does not provide a single specific reason as to why he has not had time to procure any evidence despite his having ample time to do so — this case base been pending for almost a year. (See generally Dkt. 27-1 [Declaration of Charles Zahedi, hereinafter "Zahedi Decl."].) The parties even stipulated to an extension of time for Defendant to file an opposition to the present motion specifically so that Defendant could be afforded more time to "draft, research, gather documents and submit any opposition" to the motion. (Dkt. 25 at 2.) Rule 56(d) does not excuse a party from sleeping on his rights. Accordingly, the Court declines to grant Defendant relief under Rule 56(d).
Defendant also contends that there is a genuine dispute of material fact because Defendant received a judgment in his favor by a Luxembourg court in 2005 that contradicts the 2012 Judgment, providing grounds to decline enforcement of the 2012 Judgment under the Uniform Act. (Dkt. 27 at 2-3; Zahedi Decl. ¶ 5.) However, he has not presented the Court with a copy of this purported 2005 judgment, provided any admissible evidence in support of his contention, or explained to the Court why he did not procure a copy of the 2005 judgment in the year since the complaint was filed or during the two months since the motion for summary judgment has been pending. Therefore, the Court will not credit this claim, especially since the Uniform Act provides the court with discretion as to whether to enforce a foreign judgment where there is a conflicting judgment. Cal. Civ. Proc. Code § 1716(c)(4). Defendant's conclusory statement that the 2012 Judgment may not be final and conclusive for purposes of the Uniform Act for some unspecified reason (and that he needs more time to conduct discovery on this issue) is similarly unsupported. (See Dkt. 27 at 7.)
Defendant also claims that he needs additional time for discovery "to determine whether due process was violated, specifically to determine the means of service of process and notice of the appeal in the underlying action." (Dkt. 27 at 7.) This argument appears to be based on Defendant's insistence that he did not appear in the Luxembourg action and that the 2012
Finally, Defendant argues that the Uniform Act does not apply here because the majority of the 2012 Judgment — 300,000 euros — constitutes a penalty. (Dkt. 27 at 4.) Plaintiff contends that this award is "clearly remedial and does not punish an offense against the public." (Dkt. 22 at 5.) Plaintiff is correct. Under California law, "[a] statute penal in that sense is one that awards a penalty to the state, or to a public officer in its behalf, or to a member of the public, suing in the interest of the whole community to redress a public wrong. The purpose must be, not reparation to one aggrieved, but vindication of the public justice." Java Oil Ltd. v. Sullivan, 168 Cal.App.4th 1178, 1187-88, 86 Cal.Rptr.3d 177 (2008). "The test in the Restatement of the Law, The Foreign Relations Law of the United States (Restatement) is consistent," explaining that a "judgment in favor of a foreign state arising out of a contract, a tort, a loan guaranty, or similar civil controversy is not penal for purposes of this section." Id. (emphasis added). Here, while the 2012 Judgment does state that the parties agreed Article 15 of the partnership agreement was "to be interpreted as a penalty clause," (Capp. Decl. Ex. A at 3), it went on to explain that Under Article 15 provided for the compensation of 300,000 euros for failure to disclose patients "since this failure maybe extrapolated to other undeclared earnings received but not yet discovered by the wronged partner." (Id.) The fact that the parties used the word "penalty" is not dispositive — Article 15 was clearly intended to compensate the parties for wrongful conduct proscribed by the partnership agreement and is therefore not a penalty within the meaning of the Uniform Act.
There is no genuine dispute of material fact in this case and Plaintiff has met his burden of demonstrating that the Uniform Act applies. Accordingly, the Court GRANTS Plaintiff's motion for summary judgment.
For the foregoing reasons, Plaintiff's motion for summary judgment is GRANTED. A judgment is issued concurrently with this Order.