Blue Ridge Investments, LLC v. Republic of Argentina
902 F. Supp. 2d 367
S.D.N.Y.2012Background
- Blue Ridge filed a petition to confirm an ICSID arbitral award against Argentina; CMS Gas Transmission filed the underlying ICSID claim in 2001 and CMS won a 2005 award for $133.2 million plus interest; Argentina sought annulment and subsequently did not pay the award; Blue Ridge explicitly states it is the assignee/successor to CMS; Argentina’s 2005-2011 actions and ICSID procedures are pertinent to jurisdiction and enforcement; the court denied Argentina’s threshold dismissal and addressed fraud/waiver, res judicata, and limitations in the context of an ICSID award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FSIA exceptions confer subject matter jurisdiction | Blue Ridge argues 1605(a)(1) implied waiver and 1605(a)(6) arbitral award exception apply | Argentina asserts no waiver under 1605(a)(1) or 1605(a)(6) | Both exceptions apply; court has subject matter jurisdiction |
| Whether the court has personal jurisdiction over Argentina | Subject matter jurisdiction plus proper service allow personal jurisdiction | Argues lack due to jurisdictional basis | Yes, court has personal jurisdiction under FSIA once subject matter jurisdiction exists |
| Whether assignee can sue to confirm an ICSID award | Assignment permits enforcement; assignee should have standing | Asignee cannot seek confirmation under Article 54(2) | Assignee may seek recognition/enforcement; valid standing |
| Whether res judicata bars the petition | Dismissal without prejudice could reopen; petition not barred | Res judicata bars identical claims from Blue Ridge I/CMS | Not barred; 41(a)(2) dismissal intention unclear; res judicata denied |
| Whether the petition is time-barred | No limitations period applicable; federal law borrows New York CPLR where appropriate | CPLR CPLR 7510 1-year limit applies; action untimely | Not time-barred; CPLR 211(b) 20-year limit applies for money judgments; petition timely |
Key Cases Cited
- Seetransport Wiking Trader Schiffarhtsgesellschaft MBH & Co. v. Navimpex Centrala Navala, 989 F.2d 572 (2d Cir.1993) (implied waiver under ICSID convention, enforcement abroad)
- LETCO, Ltd. v. Gov't of the Republic of Liberia, 650 F.Supp. 73 (S.D.N.Y.1986) (Liberia signatory to ICSID; waiver via convention enforcement)
- Amerada Hess Shipping Corp. v. Republic of Argentina, 488 U.S. 428 (1989) (signatory status does not imply waiver absent treaty language)
- MINE v. Republic of Guinea, 693 F.2d 1094 (D.C.Cir.1982) (context of ICSID participation; distinguishes AAA award enforcement)
- Cargill Int'l S.A. v. M/T Pavel Dybenko, 991 F.2d 1012 (2d Cir.1993) (defining burden in FSIA jurisdiction)
- Brink’s Ltd. v. South African Airways, 93 F.3d 1022 (2d Cir.1996) (interpretation of treaty terms; ambiguity standards)
- Schoonheim v. Epstein, 123 A.D.2d 549 (1st Dep’t 1986) (20-year statute applicable to foreign money judgments in NY)
- Choice Hotels Int’l, Inc. v. Goodwin & Boone, 11 F.3d 469 (4th Cir.1993) (necessity of explicit language for 41(a)(2) prejudicial dismissal)