Magness v. Russian Federation

Descendants of the Magness family (the descendants) (plaintiffs) filed suit against the Russian Federation (Russia); its political subdivision, the Ministry of Culture (the ministry); and a Russian state agency, the State Diamond Fund (defendants), alleging that during the Bolshevik Revolution, the former Soviet Union illegally confiscated property that belonged to the Magness family. The descendants sought damages and a temporary restraining order (TRO) to prevent certain family jewels from leaving the jurisdiction. After the district court set a deadline to serve the summons and complaint, the descendants initially served the attorneys who represented Russia at the TRO hearing. The descendants also served the Texas Secretary of State and the United States State Department with certain forwarding instructions and mailed the papers directly to the Russian Deputy Minister of Culture in Moscow. It was not known who from that agency signed for the documents upon receipt or if any Russian government officials actually saw the documents. None of these methods strictly complied with the service requirements of the Foreign Sovereign Immunities Act (FSIA). The district court nevertheless granted the descendants a default judgment and denied a motion by Russia, the ministry, and the State Diamond Fund to vacate the default judgment, finding that the methods of service substantially complied with the FSIA. Russia, the ministry, and the State Diamond Fund appealed.