US embassy cable - 04YEREVAN1665

UNCLAS SECTION 01 OF 02 YEREVAN 001665 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PLEASE PASS ATTORNEY GENERAL'S OFFICE 
DEPT FOR EUR/CACEN 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, PHUM, AM 
SUBJECT:  LETTER FROM THE MINISTER OF JUSTICE TO 
ATTORNEY GENERAL ASHCROFT 
 
1. (U) Sensitive But Unclassified.  Please treat 
accordingly. 
 
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TEXT OF LETTER FROM MOJ 
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2. (SBU) The Minister of Justice Davit Harytyunyan's 
staff transmitted the following letter to the 
Embassy July 28, noting that it had also been sent 
to the Attorney General through other channels.  End 
Summary.  The English-language text of the letter 
from Minister of Justice follows.  Begin Text: 
 
July 27, 2004 
 
The Honorable John Ashcroft 
Attorney General of the United States of America 
U.S. Department of Justice 
950 Pennsylvania Ave., NW 
Washington, DC  20530-0001 
 
re:  Martin Marootian, et al., on behalf of 
     themselves and all others similarly situated, 
     Plaintiffs v. New York Life Insurance Company, 
     Defendant, Case No. C99-12073 CAS (MCx) in the 
     United States District Court, Central District 
     of California (the "Court"). 
 
Dear Mr. Attorney General: 
 
I am writing at the request of citizens of the 
Republic of Armenia and on behalf of other Armenians 
who are potential class members in the above- 
referenced class action case to seek your 
intercession before a settlement agreement is 
approved at the Final Fairness Hearing, effectively 
foreclosing their right to obtain just compensation 
from the New York Life Insurance Company ("NYLIC"). 
The Final Fairness Hearing is scheduled for 9:30 
a.m. on Friday, July 30, 2004, before U.S. Judge 
Christina A. Snyder in Courtroom 5 of the United 
States District Court, Los Angeles, CA. 
 
Unfortunately, this case and its implications for 
the rights of Armenians have been brought to the 
attention of the government of the Republic of 
Armenia recently by descendants of NYLIC policy 
holders in Armenia after the opt-out period had 
passed.  Now the case is at a critical juncture when 
some of class members are pursuing a settlement that 
is likely to foreclose for all practical purposes 
the rights of Armenian citizens and the citizens of 
other nations. 
 
Approximately 85 years ago, the U.S. government 
assisted NYLIC in successfully avoiding the claims 
of the Republic of Turkey to what NYLIC estimated in 
correspondence with the U.S. government to be the 
USD 7 million face value of policies of Armenians 
that perished in the Armenian Genocide.  Now, some 
90 years after the Armenian Genocide, NYLIC is 
proposing to settle the claims of all Armenians 
worldwide for Genocide insurance claims for what 
could be as little as USD 7 million for the 
descendants of Armenian insureds.  Additional 
amounts will go to American charities with an 
Armenian focus, attorneys fees and administrative 
costs for a total of USD 20 million. 
 
At this juncture, we do not have enough information 
to determine if this is a fair and equitable 
settlement.  Nonetheless, we do note with 
significant concern and interest that when NYLIC 
successfully asked the U.S. government for 
protection from the claims of the Republic of Turkey 
85 years ago, it estimated its liability on this 
issue to be USD 7 million and now when it has come 
time to pay the descendants of the Armenian 
insureds, it has produced a list of policyholders 
for the purposes of settlement that totals somewhere 
between USD 700,000 and USD 1.34 million. 
 
On behalf of our citizens, which we believe may 
represent one-third to one-half of the worldwide 
class members of this case, the Republic of Armenia 
would like a modest amount of time to determine (i) 
if the overall amount is fair and equitable, (ii) if 
the case has been handled properly (as you know, the 
interests of plaintiff and contingency fee lawyers 
are frequently divergent from their clients), (iii) 
if there has been an adequate forensic accounting of 
sorts to explain how a USD 7 million liability has 
become a USD 700,000 to USD 1.34 million liability. 
 
Although many of the potential class members in this 
case reside in the United States, it is our 
understanding and belief that more of the potential 
class members live outside of the United States. 
After the Armenian Genocide, the majority of 
Armenians took refuge in what is now Armenia, Russia 
and other countries outside of the United States. 
 
In the past, Armenians dispersed throughout the 
world did not have a sovereign representative to 
protect the nation's interests or the interests of 
those individuals of Armenian ancestry who live 
outside of Armenia.  With regained independence, the 
Republic of Armenia is in a position to protect and 
promote national interests and by this letter seeks 
to play a constructive role in assuring that the 
resolution of this and similar claims is concluded 
fairly and equitably for all potential 
beneficiaries, including distribution of a portion 
of the settlement to charitable organizations in the 
United States and elsewhere. 
 
We are concerned that, among other things, the court 
case and ensuing settlement have not given the 
potential class members in Armenia and other 
countries outside of the United States effective or 
adequate notice of their rights to participate in or 
opt out of this class action.  Although 
announcements of the settlement were carried in 
approximately eight U.S.-based newspapers of general 
circulation and community newspapers, we note that 
only two newspapers in Armenia, with a combined 
circulation of under 5,000 carried the notice.  What 
was even more disappointing was that the key 
information was contained in a website whose address 
was incorrectly printed in these Armenian newspaper 
announcements. 
 
Given the lack of experience with and awareness of 
U.S. class actions in Armenia, these announcements 
fall significantly short of internationally 
guaranteed norms of due process.   Moreover, many 
other large populations of Armenians, who are 
potential class members, for example, in Russia and 
other countries, have not had even this level of 
notice about their rights and options.  While we 
understand that it is not possible to reach every 
possible class member, in order to assure minimum 
due process and fairness, the large populations in 
Armenia, Russia, Middle East and elsewhere in the 
CIS, representing more than three times the number 
of potential class members as in the U.S., required 
effective notice and a meaningful opportunity to be 
heard, which was not given. 
 
The Republic of Armenia seeks your intercession and 
support for a six-month temporary extension of the 
Fairness Hearing in this case.  While we understand 
that speedy closure of proceedings is desirable, 
under the circumstances, this continuance of the 
proceeding will help to avoid collateral litigation 
in the U.S. courts and abroad, conserve judicial 
resources, and assure a fair outcome not only for 
the hundreds of thousands of potential 
claimants/beneficiaries in the United States, but 
also for the millions of potential 
claimants/beneficiaries in Armenia, Russia and 
elsewhere. 
 
Sincerely yours, 
 
/s/ 
 
Davit Harytyunyan 
Minister of Justice 
 
cc:  Honorable Judge Christina Snyder 
 
End Text. 
ORDWAY