Justia Civil Procedure Opinion Summaries

Juan Jose Paramo, the defendant-appellant, is involved in a legal dispute with Banco Mercantil de Norte, S.A. and Arrendadora y Factor Banorte, S.A. de C.V. (the Banorte Parties). The Banorte Parties allege that Paramo committed large-scale fraud in Mexico and fled to the United States. They are pursuing a civil lawsuit in Mexico and sought discovery in the U.S. under 28 U.S.C. § 1782 to locate and seize Paramo’s assets. The Banorte Parties filed an ex parte request for discovery assistance, which the district court granted, authorizing subpoenas for Paramo and two other individuals.The United States District Court for the Southern District of Texas granted the Banorte Parties' petition and authorized the subpoenas. Paramo filed a motion to quash the subpoenas, arguing that the discovery request was overly broad and that the Intel factors favored him. The district court denied Paramo’s motion in a brief order without waiting for his reply or holding a hearing. Paramo appealed the decision, arguing that the district court failed to provide reasoning for its denial and violated local rules by not allowing him to file a reply.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the district court abused its discretion by failing to provide any reasoning for its decision to deny Paramo’s motion to quash. The Fifth Circuit emphasized that district courts must explain their decisions when granting or denying motions to quash § 1782 subpoenas to allow for effective appellate review. Consequently, the Fifth Circuit vacated the district court’s order and remanded the case for further proceedings, instructing the lower court to provide a reasoned decision. The court did not address the substantive arguments regarding the Intel factors or the scope of the discovery request. View "Banco Mercantil de Norte, S.A. v. Paramo" on Justia Law

In the early 1990s, the Republic of Argentina issued collateralized bonds as part of a sovereign-debt-relief plan. Argentina retained reversionary interests in the collateral, which would revert to Argentina if the bonds were fully paid. However, Argentina defaulted on the bonds in 2001. Two decades later, holders of other defaulted Argentine bonds sought to attach these reversionary interests to satisfy judgments from Argentina’s default. They argued that the reversionary interests were used for commercial activity in the U.S., thus falling under an exception to the Foreign Sovereign Immunities Act (FSIA).The United States District Court for the Southern District of New York granted the attachment of the reversionary interests. During the appeal, the bonds matured, and the district court ordered the turnover of the reversionary interests to the bondholders. Argentina appealed both the attachment and turnover orders, leading to a consolidated appeal.The United States Court of Appeals for the Second Circuit affirmed the district court’s orders. The court held that Argentina’s reversionary interests were not protected by the FSIA because Argentina used them in commercial activity in the U.S. The court also found Argentina’s arguments against the turnover under New York law to be meritless. Additionally, the court ordered the parties to resubmit their briefs and appendices with narrow redactions, as the reasons for sealing the case were no longer compelling. The court denied the motion to supplement the record and granted the motion to limit the scope of sealing. View "Attestor Master Value Fund LP v. Republic of Argentina" on Justia Law

The case involves over 1,420 Peruvian citizens alleging environmental harm due to exposure to toxic substances from the La Oroya Metallurgical Complex (LOMC) in Peru. The plaintiffs claim that Doe Run Resources Corporation and related entities, which purchased LOMC in 1997, failed to reduce lead emissions, resulting in unsafe lead levels and subsequent health issues. The plaintiffs argue that Doe Run's decision-making in the United States led to their injuries.Initially, the plaintiffs filed common law tort lawsuits in Missouri state court, which were removed to federal court and consolidated. The district court dismissed several claims and defendants but allowed the substantive negligence-based claims to proceed under Missouri law. Doe Run filed motions to dismiss based on international comity and to apply Peruvian law, both of which were denied by the district court. The court also denied summary judgment on the safe harbor defense and certified its choice-of-law and comity rulings for interlocutory appeal.The United States Court of Appeals for the Eighth Circuit reviewed the district court's decisions. The court held that the district court did not abuse its discretion in denying dismissal under the doctrine of international comity, as the harm occurred in Peru but the alleged conduct occurred in Missouri. The court also found that the Trade Promotion Agreement (TPA) between the United States and Peru did not require dismissal, as the plaintiffs' claims were not explicitly addressed by the TPA. Additionally, the court determined that traditional comity factors did not necessitate dismissal, as neither the State Department nor the government of Peru had asserted their positions, and there was no adequate alternative forum in Peru. Lastly, the court concluded that extraterritoriality principles did not warrant abstention, as the plaintiffs' claims were based on conduct within the United States.The Eighth Circuit affirmed the district court's judgment. View "Reid v. Doe Run Resources Corp." on Justia Law

The case involves a dispute between SPS Corp I, Fundo de Investimento em Direitos Creditórios Não Padronizados (SPS), and General Motors Co. (GM). GM Brazil, a subsidiary of GM, sued the Brazilian government to recover tax overpayments made by car dealerships. After winning the right to recover, GM Brazil filed a claim with Brazil’s tax agency, Receita Federal do Brasil (RFB), to determine the exact amount. Meanwhile, SPS, as the assignee of thirty-five dealerships, sought to recover the tax overpayments from GM Brazil in Brazilian courts but faced adverse decisions regarding standing and preliminary discovery.The District Court for the District of Delaware reviewed SPS’s application for discovery against GM under 28 U.S.C. § 1782, which allows for discovery in aid of foreign litigation. The District Court denied the request, citing the factors from the Supreme Court’s decision in Intel Corp. v. Advanced Micro Devices, Inc. The court found that the discovery sought was within the jurisdictional reach of Brazilian courts, which had already denied similar requests by SPS. The court also noted that allowing the discovery would undermine the decisions of the Brazilian courts and lead to inefficiency.The United States Court of Appeals for the Third Circuit reviewed the District Court’s decision. The Third Circuit affirmed the lower court’s ruling, agreeing that the Intel factors weighed against granting SPS’s discovery request. The court emphasized that the Brazilian courts had jurisdiction over the requested documents and had already denied SPS’s requests. The Third Circuit found no abuse of discretion in the District Court’s decision to respect the Brazilian courts’ rulings and to avoid circumventing foreign proof-gathering restrictions. View "SPS Corp I v. General Motors Co." on Justia Law

In a dispute between the Republic of Djibouti and Doraleh Container Terminal (Doraleh), Doraleh secured a $474 million arbitral award against Djibouti. Djibouti then nationalized a majority interest in Doraleh and appointed a provisional administrator, Chantal Tadoral, to manage the company. Quinn Emanuel, a law firm, sought to enforce the arbitral award in the U.S. District Court for the District of Columbia, claiming to represent Doraleh. However, Tadoral stated she did not authorize the filing, and Djibouti requested the case be dismissed.The District Court for the District of Columbia entered judgment for Doraleh, holding that Quinn Emanuel’s authority was irrelevant or, alternatively, that Djibouti had forfeited the issue by not raising it during arbitration. Djibouti appealed, arguing that the district court erred by not determining whether Quinn Emanuel had the authority to represent Doraleh.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and disagreed with the district court. The appellate court held that Quinn Emanuel’s authority is relevant and that the issue of a lawyer’s authority can be challenged at any point in litigation. The court found that Djibouti presented substantial evidence questioning Quinn Emanuel’s authority, which required the district court to determine whether the law firm had the authority to file the suit. Consequently, the appellate court vacated the judgment and remanded the case to the district court to determine Quinn Emanuel’s authority to represent Doraleh. View "Doraleh Container Terminal SA v. Republic of Djibouti" on Justia Law

Sumontinee Sridej, a Thai citizen, was accused of defrauding her employer in Thailand of approximately $4 million worth of electronics between 2013 and 2015. She left Thailand in January 2015 and moved to Las Vegas, Nevada. In 2022, Thailand requested her extradition under the extradition treaty between Thailand and the United States. The U.S. government filed a complaint seeking her arrest and extradition, and a magistrate judge certified her extradition in January 2023. Sridej then filed a habeas corpus petition challenging her extradition, which the district court denied, allowing her to renew her claim after the Secretary of State made a formal extradition determination.The United States District Court for the District of Nevada denied Sridej’s habeas corpus petition and her subsequent motion to reopen the case under Rule 60(b). The district court found that the Secretary of State had granted Thailand’s extradition request and that the Secretary had considered whether Sridej would face a risk of torture if extradited, as required by the Convention Against Torture (CAT) and its implementing regulations.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s order. The Ninth Circuit held that the Secretary of State had properly considered the risk of torture in compliance with CAT’s regulations. The court found that a declaration by an Attorney Adviser at the Office of the Legal Adviser for the Department of State was sufficient to establish that the Secretary had fulfilled his obligations. The court also held that the declaration did not need to be signed by the Secretary or a senior official and did not require a case-specific explanation for the extradition decision due to the doctrines of separation of powers and non-inquiry. The court affirmed the district court’s denial of Sridej’s Rule 60(b) motion. View "SRIDEJ V. BLINKEN" on Justia Law

Webuild S.P.A., an Italian investment company, formed a consortium with other companies to work on the Panama Canal expansion project. After the project's completion, Webuild initiated an arbitration against Panama under the ICSID, alleging that Panama breached its obligations under a bilateral investment treaty by providing incomplete information and making unfair financial demands. Webuild sought discovery from WSP USA, which had acquired the project's engineering consultant, Parsons Brinkerhoff.The United States District Court for the Southern District of New York initially granted Webuild's ex parte application for discovery under 28 U.S.C. § 1782. However, following the Supreme Court's decision in ZF Automotive US, Inc. v. Luxshare, Ltd., which limited § 1782 to governmental or intergovernmental tribunals, the district court vacated its order and quashed the subpoena. The court concluded that the ICSID arbitration tribunal did not qualify as a governmental or intergovernmental entity under § 1782.The United States Court of Appeals for the Second Circuit reviewed the district court's decision de novo. The appellate court affirmed the lower court's ruling, agreeing that the ICSID tribunal did not exercise governmental authority as required by § 1782. The court noted that the tribunal was formed specifically for the arbitration, funded by the parties, and its members had no official governmental affiliation. Thus, the ICSID tribunal did not meet the criteria established by the Supreme Court in ZF Automotive for a "foreign or international tribunal" under § 1782. View "Webuild v. WSP USA Inc." on Justia Law

The case involves Dr. Saad Aljabri, a former Saudi Arabian government official, who alleges that a group led by the current Saudi Prime Minister and Crown Prince, Mohammed bin Salman bin Abdulaziz al Saud, plotted to kill him after he relocated to Canada. The district court dismissed Aljabri's claims, finding that it lacked personal jurisdiction over most of the defendants, and that Aljabri had failed to state a claim against two others.The district court found that due to the burden on bin Salman to litigate in the United States and Saudi Arabia’s greater procedural and substantive interest, the court’s exercise of personal jurisdiction over bin Salman would not meet “traditional notions of fair play and substantial justice.” The court also determined that the District of Columbia’s long-arm statute did not provide “specific” personal jurisdiction over other defendants because Aljabri failed to sufficiently align their alleged business activities in D.C. with the plot against his life. The court denied Aljabri's request for jurisdictional discovery, finding that any information revealed in the discovery would not change the court’s conclusion that exercising personal jurisdiction over the defendants would be unreasonable.The United States Court of Appeals for the District of Columbia Circuit affirmed the dismissal of all claims against Saudi Prime Minister Mohammed bin Salman bin Abdulaziz al Saud, albeit for a different reason: his immunity from suit. However, the court held that the district court did abuse its discretion in denying Aljabri’s motion for jurisdictional discovery outright. The court therefore reversed the district court’s order denying jurisdictional discovery, vacated the judgment of dismissal with respect to two defendants, and remanded for jurisdictional discovery. The court affirmed the dismissal of claims against two other defendants for the reasons given by the district court. View "Aljabri v. Mohammed bin Salman bin Abdulaziz al Saud" on Justia Law

The case involves a dispute over the ownership of a painting by Bernardo Bellotto, which was sold under duress by Max Emden during the Nazi persecution of Jews prior to World War II. The painting was later found in a salt mine in Austria by the Monuments Men, a group of U.S. military officers tasked with facilitating the restitution of art stolen by the Nazis. The painting was mistakenly sent to the Netherlands to fulfill a claim by a gallery in Amsterdam, but the painting was actually a replica painted by Bellotto himself, not the gallery's version. The painting was eventually sent to the United States and is currently housed in the Museum of Fine Arts in Houston. The heirs of Max Emden, the original owner, are seeking to recover the painting.The case was initially heard in the United States District Court for the Southern District of Texas, which dismissed the claim due to the act of state doctrine. This doctrine prohibits U.S. courts from questioning the actions of a foreign government, in this case, the Dutch government's decision to send the painting to the United States.The case was then appealed to the United States Court of Appeals for the Fifth Circuit. The court affirmed the lower court's decision, agreeing that the act of state doctrine applies in this case. The court held that any evaluation of the painting's ownership would require questioning the Dutch government's actions, which is prohibited by the act of state doctrine. The court also rejected the plaintiffs' arguments that the doctrine should not apply because the Dutch government's actions were not official, there would be no negative impact on foreign relations, and the act was not solely within the Netherlands. The court concluded that the act of state doctrine bars U.S. courts from questioning the validity of the Dutch government's actions. View "Emden v. Museum of Fine Arts" on Justia Law

The case involves a Ukrainian couple, Yasamin Karimi and Roman Tereshchenko, who divorced and disputed custody of their two children. Following Russia's invasion of Ukraine, Tereshchenko agreed to Karimi removing the children from Ukraine for safety reasons, but requested that she bring them to him in Dubai. Instead, Karimi took the children to undisclosed locations, including the United States. Tereshchenko filed a petition under the Hague Convention on the Civil Aspects of International Child Abduction for the return of the children. The District Court granted Tereshchenko’s petition and ordered the children returned to him in France, where he was currently residing.Karimi appealed the decision, challenging the District Court's jurisdiction and arguing that Tereshchenko had consented to the children's removal. The United States Court of Appeals for the Second Circuit affirmed the District Court's jurisdiction and rejected Karimi's argument that Tereshchenko had consented to the children's removal. The Court of Appeals also found that the District Court had erred in determining that the children would not be exposed to a grave risk of harm if they were returned to western Ukraine. However, the Court of Appeals concluded that the District Court was permitted to order the return of the children to Tereshchenko in a third country, France, as a temporary measure due to the grave risk of harm in Ukraine. The case was remanded to the District Court to modify the order to maintain the Ukrainian courts’ authority over an ultimate custody determination. View "Tereshchenko v. Karimi" on Justia Law