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WASHINGTON — The Supreme Court refused on Tuesday to intercede in a mysterious fight over a sealed grand jury subpoena to a foreign corporation issued by a federal prosecutor who may or may not be Robert S. Mueller III, the special counsel investigating the Trump-Russia affair.
The court’s action means the corporation, which has not been identified, must provide information to the prosecutor or face financial penalties. The court’s two-sentence order gave no reasons and provided no details.
Almost everything about the case has been cloaked in secrecy, but a three-page ruling issued on Dec. 18 by the United States Court of Appeals for the District of Columbia Circuit provided a few hints.
An unnamed foreign government, referred to in the ruling as Country A, owns the corporation, an unsigned order from a unanimous three-judge panel of the appeals court said. The panel was made up of Judges David S. Tatel, Thomas B. Griffith and Stephen F. Williams.
The panel rejected the corporation’s argument that it could not be forced to comply with the subpoena under a federal law that provides immunity from lawsuits to foreign governments in some circumstances. Even if that law applied to cases concerning grand jury subpoenas, the panel ruled, the law makes an exception for foreign governments’ commercial activities.
The panel also rejected the corporation’s argument that the subpoena was “unreasonable and oppressive” because complying with it would require the corporation to violate one of its home country’s law.
“The text of the foreign law provision the corporation relies on does not support its position,” the panel wrote, adding that explanations from the corporation’s lawyers and “a regulator from Country A” were unpersuasive.
“Consequently,” the panel wrote, “we are unconvinced that Country A’s law truly prohibits the Corporation from complying with the subpoena.”
The appeals court’s decision affirmed a sealed ruling by Chief Judge Beryl A. Howell of the Federal District Court in Washington that had held the corporation in contempt and imposed, as the appeals court put it, “a fixed monetary penalty to increase each day the corporation fails to comply.”
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