United States Second Circuit

In an interpleader action to determine competing claims to $6.8 million held by the United States, summary judgment in favor of Brazil, whose claim to the monies derives from the criminal forfeiture judgment of a Brazilian court, is vacated and remanded, where: 1) the "penal law rule" precludes United States courts from directly or indirectly enforcing foreign criminal laws; but 2) 28 U.S.C. section 2467 creates an exception to the penal law rule and, because Brazil has represented that it intends to request, pursuant to its mutual legal assistance treaty with the United States, that the Attorney General file a section 2467 action to secure the interpleader monies for Brazil, the matter is remanded with instructions to the district court to afford Brazil and the Attorney General a reasonable period of time to do so before the district court conclusively decides which interpleader party, if any, is entitled to the funds at issue.

Appellate Information

• Decided 03/24/2014
• Published 03/24/2014

Judges

• RAGGI

Court

• United States Second Circuit

Counsel