Africa Growth Corporation v. Republic of Angola
Civil Action No. 2017-2469
D.D.C.Dec 3, 2018Background
- AFGC, a U.S. public company, alleges that Angolan General Antonio Andrade, his son Captain Miguel Andrade, Prosecutor Natasha Andrade Santos, Attorney General Joao Maria de Sousa, Governor Francisco Carneiro, and the Republic of Angola conspired to seize and occupy AFGC’s Angolan subsidiaries and apartment properties, divert funds, and block enforcement of Angolan court orders.
- AFGC filed suit in D.D.C. on Nov. 15, 2017 and served defendants via the FSIA §1608(a)(3) procedure on Dec. 26, 2017; no timely answers were filed and the clerk entered default on March 2, 2018; AFGC moved for default judgment March 15, 2018.
- Angola moved to set aside the default on Sept. 4, 2018, arguing sovereign defenses and contesting service and jurisdictional grounds as to the individual defendants.
- AFGC’s allegations include corporate-forgery, fraudulent transfers, appointment of Andrade as legal representative of subsidiaries, armed occupation of buildings, and failure of Angolan authorities to enforce local court orders that found unlawful seizure.
- The Court denied AFGC’s motion for default judgment, granted Angola’s motion to set aside the default as to Angola, and ordered AFGC to show cause why the individual defendants should not be dismissed for lack of personal jurisdiction; Angola was given time to file dispositive motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper service on individual defendants | Service via FSIA on Angolan foreign ministry was sufficient | FSIA service applies to foreign states/agencies, not natural-person officials; Rule 4(f) governs service on individuals abroad | Service under FSIA to individual officials was defective; plaintiff failed to show personal jurisdiction over individuals; court will require show-cause on dismissal |
| Personal jurisdiction over individuals | Implied contacts suffice given conduct related to AFGC’s U.S. parent | Insufficient minimum contacts with D.C.; alleged contact limited and inadequate | Plaintiff failed to make prima facie showing of personal jurisdiction over individual defendants |
| Vacatur of clerk’s default (Rule 55(c)) — willfulness | Default was willful due to 8-month delay after service | Delay caused by internal government approvals to retain counsel; not intended willful default | Default by Angola found willful, but willfulness not dispositive; other factors assessed favor vacatur |
| Vacatur of clerk’s default — prejudice & meritorious defenses | Vacatur would prejudice AFGC by prolonging inability to recover assets | Delay alone is not sufficient prejudice; Angola advanced plausible FSIA defenses that could defeat jurisdiction | Setting aside default would not unduly prejudice AFGC and Angola presented meritorious defenses; default vacated as to Angola |
Key Cases Cited
- Mwani v. bin Laden, 417 F.3d 1 (D.C. Cir.) (court must satisfy itself of personal jurisdiction before entering default)
- Jackson v. Beech, 636 F.2d 831 (D.C. Cir.) (purpose of default judgments to protect diligent parties)
- Mohamad v. Rajoub, 634 F.3d 604 (D.C. Cir.) (applying Keegel factors for vacatur of default)
- Keegel v. Key West & Caribbean Trading Co., 627 F.2d 372 (D.C. Cir.) (three-factor test: willfulness, prejudice, meritorious defense)
- Gilmore v. Palestinian Interim Self-Gov't Auth., 843 F.3d 958 (D.C. Cir.) (Rule 55(c) permits courts to consider equitable factors in context)
- FG Hemisphere Assocs., LLC v. Democratic Republic of Congo, 447 F.3d 835 (D.C. Cir.) (special consideration for foreign sovereigns in default context)
- Samantar v. Yousuf, 560 U.S. 305 (U.S. Sup. Ct.) (FSIA does not cover natural-person foreign officials)