MANHATTAN (LN) — U.S. District Judge Margaret M. Garnett granted an application by HSBC Securities Services (Luxembourg) S.A. on Tuesday, ordering Irving H. Picard, trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, to produce documents for use in proceedings before the Luxembourg Court of Appeal and the Luxembourg District Court.

The application sought discovery under 28 U.S.C. § 1782, the federal statute allowing U.S. district courts to assist foreign tribunals. Garnett concluded that the statutory requirements were met: the trustee resides in the Southern District of New York, the discovery is for use in a foreign proceeding, and HSBC is an interested person in that proceeding.

The Luxembourg litigation concerns the amount HSBC must return to Herald Fund SPC, a sum tied to the equivalent value of securities that Herald purportedly held with Bernard L. Madoff Investment Securities LLC. Garnett found the discovery requests sufficiently tailored to provide information relevant to the parties’ claims and defenses, specifically documents concerning securities purchased by Herald through the Madoff firm and Herald’s account with the firm.

HSBC also sought documents related to Primeo Fund’s transactions with the Madoff firm, contending these reflected transfers in kind of securities to Herald. Garnett determined these documents were clearly relevant and proportional, noting they did not appear likely to sweep in information broader than necessary.

The judge noted that Luxembourg courts are receptive to evidence obtained through international judicial assistance, including pursuant to Section 1782, and there was no evidence suggesting the Luxembourg courts would reject such evidence. She also found no indication that HSBC was attempting to circumvent foreign proof-gathering restrictions.

Garnett authorized HSBC’s counsel to serve the subpoena on the trustee no later than 30 days of the order. The trustee was reminded of its duty to preserve relevant documents and evidence.

Any further proceedings shall be governed by the Federal Rules of Civil Procedure and the court’s local rules. Pursuant to an agreement between HSBC and Herald, the trustee must produce documents concurrently to both parties.

The Clerk of Court was directed to terminate the docket and close the case.