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COMMITTEE OF THE RUSSIAN FEDN. ON PRECIOUS METALS

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA


March 13, 1997

THE COMMITTEE OF THE RUSSIAN FEDERATION ON PRECIOUS METALS AND GEMS, Plaintiff,
v.
UNITED STATES OF AMERICA, Defendant.

The opinion of the court was delivered by: QUACKENBUSH

ORDER DENYING MOTION TO DISMISS; GRANTING MOTION TO FILE SECOND AMENDED COMPLAINT, AND ADDING GOKHRAN AS PARTY PLAINTIFF

 BEFORE THE COURT are the Government's Motion to Dismiss and Plaintiff's Motion to File Second Amended Complaint, heard on March 12, 1997 in San Francisco, California. Mark Beck and Joan Steinmann appeared for Plaintiff. Jay Weill appeared for Defendant. Having reviewed the record, heard from counsel, and being fully advised in this matter, IT IS HEREBY ORDERED that Defendant's Motion to Dismiss is DENIED and Plaintiff's Motion to File Amended Complaint is GRANTED for the following reasons.

 The Government has moved to dismiss this Complaint claiming that the Committee of the Russian Federation on Precious Metals and Gems no longer exists and Plaintiff has not moved to substitute the real party in interest, the State Fund of Precious Metals and Gems of the Russian Federation, Storage Release and Utilization of Precious Metals and Gems, known as "GOKHRAN".

 Fed. R. Civ. P. 25(c) is the applicable rule. Rule 25(c) does not substantively determine what actions survive the transfer of an interest; rather, it provides substitution procedures for an action that does survive. Hilbrands v. Far East Trading Co., Inc., 509 F.2d 1321, 1323 (9th Cir. 1975). The rule expressly permits parties to continue in an action, even if they do not remain the real party in interest, as long as the cause of action itself survives the transfer to the new party. As a matter of substantive law, the right to sue the Defendant clearly survived the Committee's transfer of interest to "GOKHRAN". See, Sun-Maid Raisin Growers of California v. California Packing Corporation, 273 F.2d 282, 284 (9th Cir. 1959). "The assignment of the trademark did not in and of itself cause all rights under the contract and injunction to vanish magically as in a puff of smoke." Id. Therefore, the Government's Motion to Dismiss is DENIED, and Plaintiff's Motion to File Second Amended Complaint is GRANTED.

 IT IS FURTHER ORDERED:

 1. The State Fund of Precious Metals and Gems of the Russian Federation, Storage Release and Utilization of Precious Metals and Gems (GOKHRAN) is HEREBY ADDED AS A PARTY PLAINTIFF in this matter, counsel having advised that GOKHRAN is now the real party in interest.

 2. Plaintiff shall forthwith serve and file its Second Amended Complaint reflecting that GOKHRAN is added as a Plaintiff.

 3. A Status Conference will be held in this matter on April 17, 1997 at 1:00 p.m. in San Francisco, California

 4. On or before April 7, 1997, counsel shall provide the court in Palm Desert, California with a written report setting forth suggestions for discovery cutoff, cutoff for dispositive motions, and suggested trial date.

 IT IS SO ORDERED. The Clerk is directed to enter this Order and forward copies to counsel.

 DATED this 13 day of March, 1997.

 JUSTIN L. QUACKENBUSH

 SENIOR UNITED STATES DISTRICT JUDGE

19970313

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