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Fed. R. Civ. P. 60(b)(5) applies to a district court's consideration of a motion to vacate a judgment enforcing an arbitral award that has since been annulled in the primary jurisdiction. In this case, petitioners submitted to arbitration in Malaysia a commercial dispute arising from the terminations by Laos of contracts granting TLL rights to mine lignite. An arbitral panel found Laos in breach and awarded petitioners approximately $57 million. Petitioners subsequently began enforcement actions under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Petitioners received judgment in their favor in the United States and United Kingdom. In 2012, the arbitral award was set aside. The Second Circuit affirmed the district court's order vacating the United States judgment, holding that the district court did not exceed the permissible bounds of its discretion under the facts of this case. The court also held that the district court did not exceed the permissible bounds of its discretion in refusing to order Laos to post security during the pendency of its Rule 60(b) motion and any subsequent appeals, nor did it err by refusing to enforce the English judgment. View "Thai-Lao Lignite (Thailand) Co., Ltd. v. Government of the Lao People’s Democratic Republic" on Justia Law

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The Fifth Amendment's prohibition on the use of compelled testimony in American criminal proceedings applies even when a foreign sovereign has compelled the testimony.  When the government makes use of a witness who had substantial exposure to a defendant's compelled testimony, it is required under Kastigar v. United States, 406 U.S. 441 (1972), to prove, at a minimum, that the witness's review of the compelled testimony did not shape, alter, or affect the evidence used by the government.  A bare, generalized denial of taint from a witness who has materially altered his or her testimony after being substantially exposed to a defendant’s compelled testimony is insufficient as a matter of law to sustain the prosecution’s burden of proof. In this case involving the London Interbank Offered Rate (LIBOR), defendants were convicted of wire fraud and conspiracy to commit wire fraud and bank fraud. The Second Circuit held that defendants' compelled testimony was "used" against them, and this impermissible use before the petit and grand juries was not harmless beyond a reasonable doubt.  Accordingly, the court reversed the judgments of conviction and dismissed the indictment. View "United States v. Allen" on Justia Law

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The Eleventh Circuit held, in this international arbitration dispute, that questions of arbitral venue, even those arising in international arbitration, are presumptively for the arbitrator to decide. Because the arbitrator in this case arguably interpreted the arbitral-venue provision at issue, the court deferred to that interpretation. Accordingly, the court affirmed the district court's confirmation of the arbitral award finding venue proper in Atlanta and Profimex liable on OAD's defamation counterclaim. View "Bamberger Rosenheim, Ltd. v. OA Development, Inc." on Justia Law

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The Second Circuit held that the district court erred in declining to vacate an arbitral award‐creditor’s ex parte petition for entry of a federal judgment against a foreign sovereign premised on an award made under the International Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). The court rejected Mobil's argument that 22 U.S.C. 1650a provides an independent grant of subject‐matter jurisdiction for actions against foreign sovereigns and decided that the Foreign Sovereign Immunities Act (FSIA), 28 U.S.C. 1330, 1391(f), 1441(d), 1602‐1611, provides the sole basis for subject‐matter jurisdiction over actions to enforce ICSID awards against a foreign sovereign. Because Mobil's utilization of ex parte proceedings were neither permitted by the FSIA nor required by Section 1650(a), the court reversed Venezuela's motion to vacate, vacated the judgment in favor of Mobil, and remanded with instructions to dismiss the ex parte petition. View "Mobil Cerro Negro, Ltd. v. Bolivarian Republic of Venezuela" on Justia Law

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The incorporation of the rules of the International Chamber of Commerce (ICC) into an arbitration agreement constitutes clear and unmistakable evidence of a delegation of gateway issues to the arbitrator. The Ninth Circuit vacated the district court's judgment entering a preliminary injunction prohibiting sureties from pursuing claims against PGE in arbitration and denying a mandatory stay of the judicial proceedings under section 3 of the Federal Arbitration Act (FAA), 9 U.S.C. 3. The panel held that the district court erred in enjoining the sureties from participating in the ICC arbitration and denying at least a temporary stay of the litigation under the FAA, preventing the arbitral tribunal from addressing the scope of the arbitration. View "Portland General Electric Co. v. Liberty Mutual Insurance Co." on Justia Law

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The Ninth Circuit affirmed the dismissal of Ayco Farm's complaint for breach of an exclusivity agreement under the doctrine of forum non conveniens. The panel held that in performing a forum non conveniens analysis, a district court does not abuse its discretion by comparing the proposed foreign forum with the forum that the plaintiff actually chose, rather than with the United States as a whole. In this case, the district court did not err in affording less deference to Ayco Farm's choice to file a lawsuit in California. Furthermore, the district court properly balanced the private and public interest factors and decided that they strongly favor trial in Mexico. View "Ayco Farms, Inc. v. Rodriguez Ochoa" on Justia Law

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The Ninth Circuit reversed the grant of summary judgment, on remand, in favor of TBC in an action under the Foreign Sovereign Immunities Act concerning a Camille Pissarro painting. The painting was forcibly taken from plaintiffs' great-grandmother by the Nazi government. The panel held that plaintiffs' claims were timely within the statute of limitations recently enacted by Congress to govern claims involving art expropriated during the Holocaust in the Holocaust Expropriated Art Recovery Act of 2016 (HEAR). The panel applied the Second Restatement of the Conflict of Laws to determine which state's substantive law applies in deciding the merits of this case, and held that the Second Restatement directed the panel to apply Spain's substantive law. The district court erred in deciding that, as matter of law, TBC had acquired title to the painting through Article 1955 of the Spanish Civil Code because there was a triable issue of fact whether TBC was an encubridor (an "accessory") within the meaning of Civil Code Article 1956. Finally, TBC was not entitled to summary judgment based on its laches defense; the great-grandmother's acceptance of the 1958 Settlement Agreement did not foreclose plaintiffs' claims; Spain's Historical Heritage Law does not prevent TBC from acquiring prescriptive title to the painting; and the district court correctly found that the application of Article 1955 to vest TBC with title to the painting would not violate the European Convention on Human Rights. View "Cassirer v. Thyssen-Bornemisza Collection Foundation" on Justia Law

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In this contract dispute between Getma and the Republic of Guinea, the Common Court of Justice and Arbitration of the Organization for the Harmonization of Business Law in Africa (CCJA), a court of supranational jurisdiction for Western and Central African States, set aside an award in favor of Getma. Getma sought to enforce the annulled award in the United States. The D.C. Circuit held that the CCJA is "a competent authority" for purposes of article V(1)(e) of the New York Convention, and for reasons of international comity, the court declined to second-guess a competent authority's annulment of an arbitral award absent extraordinary circumstances. Because Getma's arguments failed under this stringent standard, the court affirmed the judgment of the district court refusing to enforce the award. View "Getma International v. Republic of Guinea" on Justia Law

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Plaintiffs sought a declaratory judgment stating that their family members were killed in the course of a U.S. drone attack in violation of international law governing the use of force, the Torture Victim Protection Act (TVPA), and the Alien Tort Statute (ATS). The district court dismissed the claims primarily based on political question grounds. The DC Circuit affirmed and held that it was not the role of the Judiciary to second-guess the determination of the Executive, in coordination with the Legislature, that the interests of the U.S. called for a particular military action in the ongoing War on Terror. In this case, El-Shifa Pharmaceutical Industries Co. v. United States, 607 F.3d 836 (D.C. Cir. 2010), controlled the court's analysis and compelled dismissal of plaintiffs' claims. View "Bin Ali Jaber v. United States" on Justia Law

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Plaintiffs filed suit against BNTK and BUSA for their alleged roles in plaintiffs' 2008 abduction from London and their prolonged detention in Belarus by authorities of that country. The Second Circuit held that it has jurisdiction to review this appeal pursuant to the collateral order doctrine; the district court acted within its discretion in ordering limited jurisdictional discovery and in sanctioning defendants for failing to comply with that order; but to the extent the challenged October 20, 2015 order not only required defendants to pay an earlier accrued monetary sanction but also struck their sovereign immunity claim in its entirety, it exceeded the district court's discretion. Accordingly, the court affirmed the challenged order generally, vacating only that part striking defendants' foreign sovereign immunity claim, and remanded for further proceedings. View "Funk v. Belneftekhim" on Justia Law