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National Development Co. v. Triad Holding Corp. & Adnan Khashoggi

United States Court of Appeals for the Second Circuit
930 F.2d 253 (2d Cir. 1991)


Facts

On December 22, 1986, National Development Co. (plaintiff), in an attempt to serve Adnan Khashoggi (defendant) at his New York City apartment in Olympic Tower, left a summons and complaint with Khashoggi’s maid. Although Khashoggi was living in the Olympic Tower apartment at the time of the service, he failed to appear in district court, and a default judgment was entered against him. He filed a motion to vacate the default judgment, arguing that he was improperly served because the Olympic Tower apartment was not his dwelling or usual place of abode, as required by Fed. R. Civ. Pro. 4(e)(2)(B), and alleging that his compound in Saudi Arabia was his true residence. In fact, Khashoggi lived in twelve different homes throughout the world, and he resided in his home in Saudi Arabia for no more than three months per year. The district court held that, although it found that the Olympic Tower apartment was not Khashoggi’s primary residence, he had actual notice that he had been served, and therefore service was proper. Khashoggi appealed.

Rule of Law

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Issue

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Holding and Reasoning (McLaughlin, C.J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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