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National Development Co. v Triad Holding Corp. and Adnan Khashogi


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National Development Co. v Triad Holding Corp. and Adnan Khashogi
930 F.2d 253
Student: Brian Linkous
Facts: On December 22, 1986 a summons was delivered to one of Khashoggi’s residences in New York City, NY. Khashoggi had been living in the apartment from December 15 to December 23, 1986. This notice was handed to Aurora DaSilva? the house-keeper. Khashoggi resided in the NYC apartment for a total of 34 days in 1986 and claims his primary residence is in Saudi Arabia.
Procedure: A notice was delivered to Khashoggi’s residence at the Olympic Tower in New York City, NY ON December 22, 1986 by the National Development Company. On September 23, 1987 Khashoggi failed to appear in the district court action and a default judgment was entered encouraging arbitration. On October 25, 1989, Khashoggi filed a motion to vacate the 1987 judgment. Motion denied.
Issue: Since Khashoggi’s house-keeper was of legal age she was able to receive the summons. Then only question is whether the NYC apartment was Khashoggi’s “dwelling house or usual place of abode.”
Pre-existing rules: 1. Any summons served to a residence void of intended person shall be left only with a “person of suitable age and discretion.” 2. Was the NYC apartment Khashoggi’s “dwelling house or usual place of abode?”
Holding: Yes. Khashoggi’s apartment in NYC served as his “dwelling house or usual place of abode” in enough to effectuate a summons on December 22, 1986.
Reasoning: The court had to determine if the NYC apartment building was Khashoggi’s “dwelling house or usual place of abode” and this would be very difficult in the case of any of his numerous homes throughout the world. He travels extensively never staying long in any of his properties making it useless to narrow the list to one primary residence. Also, Khashoggi was living in the apartment at the time of the summons being delivered on December 22, 1986 and the summons was left with an adult of sufficient mental acuity.

Evaluation: This is a good decision, which recognized the difficulty of assigning primary residence to any of Khashoggi’s properties, while recognizing that the place need be only a “dwelling house”.


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