United States District Court, S.D. New York
January 5, 2005.
IN RE AUCTION HOUSES ANTITRUST LITIGATION. This Document Relates to: All Cases.
The opinion of the court was delivered by: LEWIS KAPLAN, District Judge
Magistrate Judge Ronald L. Ellis has issued a report and
recommendation that recommends that Lead Counsel's motion for
authority to finalize distribution of settlement proceeds, and to
allocate funds to late filed claims on a pro rata basis be
granted except that the claims of N.B.S. Diamonds and Mouawad
Group be treated as timely filed, Louis Glick & Company ("Glick")
objects insofar as Judge Ellis did not recommend that Glick's
late claim be treated as timely filed. Glick's arguments lack
First, Judge Ellis did not err in concluding that Glick had
failed adequately to explain why it failed to submit a complete
and timely claim.
Second, even if Judge Ellis did explicitly balance the
Pioneer factors, this Court has done so de novo. While the
delay here was not excessive and no one questions Glick's good
faith, it is difficult to see why the recoveries of other class
members should be reduced to make up for the fact that Glick was
insufficiently attentive to its business to submit a complete and
timely supplemental claim form, especially in the absence of a
persuasive reason for its failure.
Finally, denial of Glick's claim is not inconsistent with the
allowance of that of Mouawad. Mouawad is a foreign entity to
which the presumption of receipt following mailing does not
apply, and it is "a vast organization with multiple offices in
different countries." (R&R at 14)
Accordingly, the Court adopts the report and recommendation and
disposes of Lead Counsel's motion accordingly.
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