Laker Airways Ltd. v. Pan American World Airways

Laker Airways Ltd. (plaintiff) was a British airline carrier that became insolvent allegedly due to the tortious and collusive conduct of Pan American World Airways and various other American, British, Swiss, German, Dutch, and Belgian airline companies (the conspirators) (defendants). Laker Airways filed suit in the United States District Court for the District of Columbia against the conspirators, claiming, among other things, that the conspirators had violated antitrust laws by pressuring Laker Airways’ lenders, Midland Bank (Midland) and Samuel Montagu & Co. Ltd. (Montagu) (the lenders) to deny financing that Laker Airways needed to stay in business. The case was consolidated with subsequently filed related actions. Laker Airways did not sue Midland or Montagu, but there was an implied accusation by Laker Airways that Midland and Montagu were involved in the conspiracy. Midland’s and Montagu’s home offices were located in London, and their activities in connection with the alleged conspiracy occurred in the United Kingdom. Laker Airways served Midland at its New York branch office and Montagu at its New York representative office, which conducted no banking operations in the district, with subpoenas for documents that were maintained in London. The respective New York offices were opened after the alleged misconduct occurred. The subpoenas did not follow the Hague Convention on the Taking of Evidence Abroad in Civil or Commercial Matters (Hague Evidence Convention) procedures. The United Kingdom passed a law stating that no persons in that country would comply with any foreign directive calling for the production of commercial records maintained in the United Kingdom. The subpoenas were issued from the United States District Court for the Southern District of New York. Midland and Montagu motioned the court to quash the subpoenas.