Justia Civil Procedure Opinion Summaries

Articles Posted in International Law
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Plaintiff brought this putative class action against more than twenty banks and brokers, alleging a conspiracy to manipulate two benchmark rates known as Yen-LIBOR and Euroyen TIBOR. He claimed that he was injured after purchasing and trading a Euroyen TIBOR futures contract on a U.S.-based commodity exchange because the value of that contract was based on a distorted, artificial Euroyen TIBOR. Plaintiff brought claims under the Commodity Exchange Act (“CEA”), and the Sherman Antitrust Act, and sought leave to assert claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”).   The district court dismissed the CEA and antitrust claims and denied leave to add the RICO claims. Plaintiff appealed, arguing that the district court erred by holding that the CEA claims were impermissibly extraterritorial, that he lacked antitrust standing to assert a Sherman Act claim, and that he failed to allege proximate causation for his proposed RICO claims.   The Second Circuit affirmed. The court explained that fraudulent submissions to an organization based in London that set a benchmark rate related to a foreign currency—occurred almost entirely overseas. Here Plaintiff failed to allege any significant acts that took place in the United States. Plaintiff’s CEA claims are based predominantly on foreign conduct and are thus impermissibly extraterritorial. As such, the district court also correctly concluded that Plaintiff lacked antitrust standing because he would not be an efficient enforcer of the antitrust laws. Finally, Plaintiff failed to allege proximate causation for his RICO claims. View "Laydon v. Coöperatieve Rabobank U.A., et al." on Justia Law

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Defendant violated her joint custody agreement with Petitioner by traveling from Switzerland to the United States with their then-12- year-old daughter, M.D., in July 2020. Petitioner filed a petition seeking M.D.’s return to Switzerland, pursuant to the Hague Convention on the Civil Aspects of International Child Abduction (the Hague Convention). After an evidentiary hearing on the merits, the district court denied the petition based on the mature child defense, finding that M.D. was of sufficient age and maturity such that the court should take account of her views and that she objected to returning to Switzerland. Petitioner appealed.   The Eighth Circuit reversed the judgment of the district court and remanded the case with directions to grant the petition for the return of M.D. under the Hague Convention on the Civil Aspects of International Child Abduction. The court explained that it agreed with the district court that M.D. is an “innocent party” in this acrimonious dispute. But because M.D. did not express a particularized objection to returning to Switzerland, instead describing a preference—for a variety of understandable reasons—to remain in the United States, the district court’s finding that M.D.’s statements constituted an objection within the meaning of the mature child defense was clearly erroneous. View "Vladyslav Dubikovskyy v. Elena Goun" on Justia Law

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Pakistan International Airlines (“PIA”) failed to transport the body of N.B. to Pakistan for burial due to a miscommunication by employees of Swissport USA, PIA’s cargo loading agent. N.B.’s family members sued PIA and Swissport in New York state court under state law; PIA removed the action to the district court. Following cross-motions for summary judgment and an evidentiary hearing, the district court held that Plaintiffs’ claims are preempted by the Montreal Convention and dismissed the suit. On appeal, Plaintiffs argued that the Montreal Convention, which preempts state-law claims arising from delayed cargo, does not apply because human remains are not “cargo” for purposes of the Montreal Convention and because their particular claims are not for “delay.”   The Second Circuit affirmed. The court explained that human remains are cargo for purposes of the Montreal Convention; and on the facts found by the district court, the claims arise from delay. The claims are therefore preempted by the Montreal Convention. The court further wrote that it was Plaintiffs who cut off PIA’s ability to perform under the terms of the waybill. That decision was understandable given the need to bury N.B. quickly, and it cannot be doubted that Plaintiffs found themselves in a hard situation. But their only recourse against PIA and Swissport was a claim under the Montreal Convention, a claim which they have consistently declined to assert. View "Badar v. Swissport USA, Inc." on Justia Law

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On appeal from the district court’s judgment declaring valid and enforceable against Appellants instruments governing a debt issue—notes, indenture, and pledge agreement. The district court granted Appellees’ motion for summary judgment, holding the notes, pledge agreement, and indenture valid and enforceable under New York law, and denied Appellants’ cross-motion, which argued the documents were void under the law of Venezuela, the jurisdiction of the issuer of the notes, and that the court should decline to enforce the notes on the basis of the act-of-state doctrine.   The Second Circuit deferred a decision and certified the following questions on the issue to the New York Court of Appeals: 1. Given PDVSA’s argument that the Governing Documents are invalid and unenforceable for lack of approval by the National Assembly, does New York Uniform Commercial Code section 8-110(a)(1) require that the validity of the Governing Documents be determined under the Law of Venezuela, “the local law of the issuer’s jurisdiction”? 2. Does any principle of New York common law require that a New York court apply Venezuelan substantive law rather than New York substantive law in determining the validity of the Governing Documents? 3. Are the Governing Documents valid under New York law, notwithstanding the PDV Entities’ arguments regarding Venezuelan law? View "PDVSA, et al. v. MUFG Union Bank, GLAS Americas" on Justia Law

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Appellant CVG Ferrominera Orinoco, C.A. (“Ferrominera”), appealed from the district court’s judgment confirming a foreign arbitral award and granting attorney’s fees and costs in favor of Petitioner Commodities & Minerals Enterprise Ltd. (“CME”). Ferrominera challenges the judgment on three grounds. First, it argues that the district court lacked personal jurisdiction because CME never served a summons on Ferrominera in connection with its motion to confirm the arbitral award. Second, Ferrominera contends that the district court erred in confirming the arbitral award based on purported lack of jurisdiction by the arbitral panel, issues with the scope of the award, and conflicts with United States public policy. Third, it argues that the district court abused its discretion in awarding attorney’s fees and costs in favor of CME.   The Second Circuit held that a party is not required to serve a summons in order to confirm a foreign arbitral award under the New York Convention. The court concluded that the district court properly enforced the arbitral award, but that it erred in awarding attorney’s fees and costs. Accordingly, the court affirmed in part and vacated in part. The court wrote that CME complied with the service of notice requirements of the New York Convention and the FAA, and the district court properly exercised personal jurisdiction over Ferrominera. Further, the court explained that Ferrominera has not borne its burden to show that the arbitration agreement is invalid where, as here, it has put forth no arguments whatsoever under the applicable law. View "Commodities & Minerals Enterprise Ltd. v. CVG Ferrominera Orinoco, C.A." on Justia Law

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In the 1990s, Aldossari’s company, Trans Gulf, entered into an agreement in Saudi Arabia with three other businesses to establish and operate an oil refinery in Saint Lucia, a Caribbean island nation. Crude oil was to be sourced from the Saudi government or its national oil company, Saudi Aramco. The project went forward, but, Aldossari alleged, the owners of the three contract counterparties – one of whom became the Crown Prince of Saudi Arabia –refused to pay Trans Gulf its share of the proceeds. Two decades later, the soon-to-be Crown Prince promised to pay Aldossari but never did. Aldossari, transferred his rights to his minor son, a U.S. citizen.The federal district court dismissed Aldossari’s subsequent tort and contract claims. The Third Circuit affirmed, holding that dismissal of the claims against a deceased defendant was proper because Aldossari failed to allege any basis for exercising subject-matter jurisdiction over those claims. As for the surviving defendants, the lack of any meaningful ties between those defendants and the United States in Aldossari’s claims defeats his effort to sue them in the U.S. The Foreign Sovereign Immunities Act precludes subject-matter jurisdiction over the claims against Saudi Arabia and Saudi Aramco. The case was remanded with directions to dismiss without prejudice since none of the dispositive rulings reach the merits. View "Aldossari v. Ripp" on Justia Law

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Sheehan emigrated from Ireland decades ago and currently lives in Winfield, Illinois. Sheehan obtained loans from an Irish bank to buy interests in an Irish medical company (Blackrock), and to purchase property located in Ballyheigue, Sheehan defaulted on both loans. Breccia, an Irish entity, acquired the loans and took steps to foreclose on the underlying collateral. Sheehan sued but an Irish court authorized Breccia to enforce its security interest in the Blackrock Shares and the Ballyheigue property. Breccia registered the Blackrock Shares in its name and appointed a receiver, Murran, to take possession of the Ballyheigue property. Sheehan filed a petition for Chapter 11 bankruptcy, triggering an automatic stay, 11 U.S.C. 362 (a)(3). Sheehan notified the Irish receiver, Murran, and Breccia of the automatic stay. Breccia continued, through Murran, to take the necessary steps toward selling the collateral, entering into a contract with IADC (another Irish company) to sell the Blackrock Shares.The bankruptcy court dismissed Sheehan's subsequent adversary complaint for lack of personal jurisdiction over the Irish defendants, as none of them conducted any activity related to the adversary claims in the U.S.; the only link between the defendants and the forum was the fact that Sheehan lived in Illinois. The email notice Sheehan provided the defendants was not sufficient process under the Hague Convention on the Service Abroad. The district court and Seventh Circuit affirmed. None of the defendants had minimum contacts with the United States. View "Sheehan v. Breccia Unlimited Co." on Justia Law

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In early 2020, to help curtail the spread of COVID-19, Washington Governor Inslee issued Proclamation 20-24 prohibiting non emergency dental care. The issue this case presented for the Washington Supreme Court’s review centered on the lost business income from the Proclamation and the interpretation of an insurance contract under which the insurance company covered lost business income for the “direct physical loss of or damage to Covered Property” and excluded coverage for loss or damage caused by a “virus.” Drs. Sarah Hill and Joseph Stout were dentists who operated two dental offices under their business Hill and Stout PLLC (HS). HS bought a property insurance policy from Mutual of Enumclaw Insurance Company (MOE) that covered business income lost due to “direct physical loss of or damage to” the properties. HS sued MOE for coverage because of its inability to use its offices for nonemergency dental practice under the Proclamation and later amended to add a putative class action. MOE moved to dismiss, arguing that HS failed to show a “direct physical loss of or damage to” the property and that the virus exclusion applied. The trial court denied the motion. After review, the Supreme Court affirmed the trial court granting summary judgment in favor of MOE. “It is unreasonable to read ‘direct physical loss of . . . property’ in a property insurance policy to include constructive loss of intended use of property. Such a loss is not ‘physical.’ Accordingly, the Proclamation did not trigger coverage under the policy.” View "Hill & Stout, PLLC v. Mut. of Enumclaw Ins. Co." on Justia Law

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NBA Properties owns the trademarks of the NBA and NBA teams. In 2020, a Properties investigator accessed HANWJH’s online Amazon store and purchased an item, designating an address in Illinois as the delivery destination. The product was delivered to the Illinois address. Properties sued, alleging trademark infringement and counterfeiting, 15 U.S.C. 1114 and false designation of origin, section 1125(a). Properties obtained a TRO and a temporary asset restraint on HANWJH’s bank account, then moved for default; despite having been served, HANWJH had not answered or otherwise defended the suit. HANWJH moved to dismiss, arguing that the court lacked personal jurisdiction over it because it did not expressly aim any conduct at Illinois. HANWJH maintained that it had never sold any other product to any consumer in Illinois nor had it any “offices, employees,” “real or personal property,” “bank accounts,” or any other commercial dealings with Illinois.The Seventh Circuit affirmed the denial of the motion to dismiss and the entry of judgment in favor of Properties. HANWJH shipped a product to Illinois after it structured its sales activity in such a manner as to invite orders from Illinois and developed the capacity to fill them. HANWJH’s listing of its product on Amazon.com and its sale of the product to counsel are related sufficiently to the harm of likelihood of confusion. Illinois has an interest in protecting its consumers from purchasing fraudulent merchandise. HANWJH alleges no unusual burden in defending the suit in Illinois. View "NBA Properties, Inc. v. HANWJH" on Justia Law

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Appellees hold a Foreign Sovereign Immunities Act of 1976 (FSIA) judgment against the Islamic Republic of Iran. Based on that judgment, Appellees moved for a writ of execution against the assets of Kuwait Finance House (KFH) Malaysia in district court. The district court granted the writ before making any findings as to whether KFH Malaysia is an “agency or instrumentality” of Iran or whether the assets at issue are “blocked.” The primary issue on appeal is whether the Terrorism Risk Insurance Act of 2002 (TRIA) permits those assets to be executed prior to such findings.   The Second Circuit denied Appellees’ motion to dismiss the appeal, denied KFH Malaysia’s petition for a writ of mandamus, vacated the order granting the writ of execution, and remanded to the district court for further proceedings. The court explained to be entitled to attachment or execution under the TRIA a plaintiff must first establish defendant’s status as an agency or instrumentality. Here, these procedures were not followed. Article 52 permits parties to commence turnover proceedings to enforce money judgments. Below, that turnover proceeding commenced, but the district court granted the relief sought in that proceeding—a writ of execution—before it considered the antecedent issue of whether KFH Malaysia is an agency or instrumentality of Iran or whether the assets at issue are “blocked.” Without such findings, there has been no showing that KFH Malaysia is in possession of property. Accordingly, Appellees failed to meet the statutory and, and consequently, they failed to establish that they were entitled to a writ of execution. View "Christine Levinson et al. v. Kuwait Finance House (Malaysia) Berhad" on Justia Law