Monthly Archives: July 2012

Third Circuit Severs Invalid Forum Clause For Arbitration, Permits Arbitration To Proceed Only In District of Challenge

Control Screening LLC v. Technology Application and Production Company, No. 11-2896 (3d Cir. 2012), involved a review of the District Court’s direction that arbitration occur in the District of New Jersey.  The parties to the contract were U.S. and Vietnamese citizens.  The international practice aspects of the decision include: First, on the strict matter of … Continue Reading

Second Circuit Reverses Class Action Denial of a Settlement Class — Matters Essential To Proving Trial Manageability Need Not Be Proven in the Context of a Settlement Class

Readers of this blog know that we address significant decisions in class or collective action law and procedure because it is an aspect of international practice that is growing in importance.  In Re American International Group, Inc. Securities Litigation, Dkt. No. 10-4401-cv (2d Cir. 2012), addresses the interplay between the rigorous requirements of class action … Continue Reading

New York State Court, Reviewing Securities Case Dismissed from Federal Court on Exterritoriality Grounds, Rules that New York is a Proper Forum and Rejects Motions To Dismiss Fraud and Unjustment Claims.

Viking Global Equities and Glenhill Capital LP, et al. v. Porsche Automobil Holding SE, Index Nos. 650435/11, 650678/11 (Sup. Ct. N.Y. Cty. 2012), are related actions by global hedge funds who allegedly lost money in short positions when Porsche allegedly made misstatements involving its intention to attempt a takeover of Volkswagon.  The case is of … Continue Reading

Second Circuit Grants Forum Non Conveniens Dismissal in the Face of Non-U.S. Statute Limiting Recovery

Figueiredo Ferraz E Engenharia De Projecto Ltda v. Republic of Peru, et al., Dkt. Nos. 09-3925-cv, 10-1612-cv (2d Cir. 2011), addresses a key issue in international practice, especially attempts to enforce international arbitral awards in the context of motions to dismiss on forum non conveniens grounds.  (For a general discussion of the forum non conveniens … Continue Reading

Eight Circuit Court of Appeals Affirms Dismissal under the Foreign Sovereign Immunities Act

Community Finance Group, Inc., et al. v. Republic of Kenya, et al., No. 11-1816 (8th Cir. 2011), decided an FSIA case with practical implications for international dispute resolution practitioners.  The transaction involved the purchase and release of gold from Kenya.  CFG paid, but there was no delivery, allegedly on the basis that there was more … Continue Reading

Ninth Circuit Affirms Arbitral Award Over Public Policy Ojection; Affirms Jurisdiction To Award Post-Award, Prejudgment Interest and Attorneys’ Fees

The Ministry of Defense and Support for the Armed Forces of the Islamic Republic of Iran v. Cubic Defense Systems, Inc., No. 99-56380, 56444 (9th Cir. 2011), decided two issues of note in the context of international practice and dispute resolution:  confirmation of an arbitral award in the face of a public policy objection, and the … Continue Reading

Tenth Circuit Addresses But then Dismisses Appeal Addressing International Child Abuction Statute

Max Joseph Leser v. Alena Berridge, No. 11-1094 (10th Cir. 2011), involved an analysis of the Hague Convention on the Civil Aspects of International Child Abduction.  In the decision below, the district court granted a petition for the return of children from the U.S. to the Czech Republic based on the stipulation of the parents … Continue Reading

Fourth Circuit Holds that “Foreign State” and Its Army Are Not Separate for Jurisdictional Purposes

Wye Oak Technology v. Republic of Iraq, No. 10-1874 (4th Cir. 2011), addressed the question under the Foreign Sovereign Immunities Act, 28 U.S.C. sec. 1602 et seq., whether claims against the Republic of Iraq were jurisdictionally distinct from claims against the Iraqi armed forces.  For jurisdictional purposes, held the Court, they are not.  The Court … Continue Reading

Petition To Confirm Arbitral Award Coupled with Relief For Indemnification and Attorney’s Fees

Related actions recently commenced in connection with an offshoot of the Madoff claims bears note for those interested in international dispute resolution practice.  We know of these issues because of the public nature of the filings made to confirm arbitral awards and for other relief. An investor commenced an arbitration against J. Ezra Merkin in … Continue Reading

Arbitration Award Upheld by Second Circuit — Manifest Disregard Challenge Available — Sort Of

Goldman Sachs Execution & Clearing, L.P., et al. v. The Official Unsecured Creditors’ Committee of Bayou Group, L.P., et al., 10-5049-cv (lead) (2d Cir. 2012) (summary order), provides a summary of several important legal principles governing international dispute resolution. Goldman Sachs began serving as the sole clearing broker for the hedge fund Bayou Fund in 1999 … Continue Reading