One Giant Leap: How Lawyer Won Apollo 11 Moondust Case
ALM Media
Updated
The legal backstory to Thursday's auction of a cloth bag containing lunar dust from the Apollo 11 mission, expected to fetch between $2 million and $4 million, "is a pretty cool case," said the lawyer who won it.
Christopher McHugh of Kansas City's Seigfreid Bingham said what made the matter fascinating beyond how it stemmed from Neil Armstrong's first scoops of material on the Moon was that it played out across criminal and civil law in courts in Illinois, Kansas and Texas.
He got involved when he received a cold call from a woman in Chicago, Nancy Lee Carlson, herself a transactional lawyer.
She claimed to have purchased the bag in 2015 for $995 in a sale of items seized by the government from a man convicted of illegally selling other NASA material. The man had directed a Kansas space museum, and the sale by the U.S. Marshal was to raise money he owed in restitution.
The bag was identified in the government sale as a "flown zippered lunar sample return bag with lunar dust. Mission Unknown." But upon receiving it, Carlson sent it to NASA to determine if it actually contained lunar material.
It did, and NASA determined it came from the bag that in which Armstrong in 1969 placed his first collections of rock and soil, moments after he uttered, "That's one small step for man, one giant leap for mankind."
Upon realizing its significance, NASA held onto the bag Carlson had purchased and asked the Kansas federal court that authorized the forfeiture sale to rescind it. NASA argued it would have demanded the bag back from the U.S. Marshal, had the agency been properly notified about the forfeiture sale and had the bag been accurately identified before it was forfeited and sold.
Last December, Judge J. Thomas Marten of U.S. District Court in Kansas expressed sympathy for NASA. He noted that, even though NASA and the FBI, which initially held the bag as evidence, are both part of the government, that didn't mean NASA should have known about the forfeiture sale.
But he found "an additional hurdle" for the government one that appears insurmountable." That was that Carlson was a "bona fide purchaser" of the bag, so he couldn't set aside the sale.
At this point, McHugh expected NASA to appeal the judge's ruling. But the 60-day deadline passed with no appeal.
The matter then moved to Houston, where NASA had the bag.
There, in February, Judge Vanessa Gilmore held a brief hearing on the government's last-ditch efforts to keep the prize.
Why didn't the government appeal, Gilmore asked Vince Carroll, an assistant U.S. attorney.
"I don't know the reason why it was chosen not to appeal that," Carroll said, according to a transcript. "That came out of the U.S. Attorney's Office in Kansas."
"That's still you, so don't give me that," the judge responded.
Carroll acknowledged the order was final, but given how unusual the case is "this isn't something that happens every day he asked if the judge would order the parties to mediation.
Gilmore rejected that idea. "I would have thought that you would have reached out to the plaintiff's counsel before now," she said.
McHugh said Carlson was open to settlement discussions, but he sensed that the government attorneys didn't have much authority to make a realistic offer. In the Texas pleadings, the government suggested it would repay Carlson the $995 she paid for the bag for its return.
McHugh said he was surprised the government never appealed the underlying ruling.
"It clearly was very important" to NASA, he said, noting how the government called the bag "a national treasure" throughout the case.
Asked why the government didn't appeal, a spokesman for the U.S. attorney in Kansas said by email, "It is our policy not to comment on internal discussions involving legal matters."
Amy Weil, who headed the appellate division for the U.S. Attorney's Office in Atlanta for 18 years, said the U.S. lawyers in Kansas would have needed authorization from the solicitor general to make an appeal. So it's possible the U.S. attorney chose not to ask, or the SG rejected the request.
"I would have thought they would've wanted to appeal it," Weil said.
Viewing the case more globally, Weil wondered about how the U.S. Marshal placed the bag for sale, knowing it was flown during an Apollo mission and contained lunar dust.
"Why didn't they just go to NASA?" she asked.
McHugh on Tuesday passed a message to his client, who was in New York for the bag's sale at Sotheby's. By late Tuesday afternoon, she had not responded.
McHugh responded to potential criticism that Carlson shouldn't sell the piece to the highest bidder, who could keep the bag in a private collection. He said he hoped it would be purchased by someone who would then loan it to a museum.
Sotheby's said the bag's owner would donate some of the proceeds to charities, including the Immune Deficiency Foundation and Bay Cliff Health Camp, and to set up a scholarship in speech pathology where she went to school, Northern Michigan University.
McHugh said this case was special in how many things went right, given how many times things go wrong in litigation.
Once the bag is sold, he said, "I'll actually be sad when it's over."