Leidos, Inc. v. Hellenic Republic
881 F.3d 213
| D.C. Cir. | 2018Background
- Leidos (formerly SAIC) obtained an ICC arbitral award on July 2, 2013 ordering the Hellenic Republic to pay €39,818,298 (damages) and $162,500 (costs), plus 6% simple interest from July 11, 2013.
- Leidos petitioned the D.D.C. to confirm the award on July 12, 2013; the Hellenic Republic filed a parallel challenge in Greek courts seeking vacatur.
- The U.S. district court stayed proceedings pending Greek litigation; the Greek Supreme Court ultimately reinstated the arbitration award in September 2016.
- On January 5–6, 2017 the district court confirmed the award and entered judgment in euros; Leidos then moved under Rules 60(a) and 59(e) to correct the judgment, seek interest/costs, and convert the entire award into U.S. dollars using the exchange rate on July 2, 2013.
- The district court amended the judgment to add costs and interest and converted the award into dollars at the July 2, 2013 rate, which increased the dollar amount by about $11.9 million; the Hellenic Republic appealed only the post-judgment currency conversion.
Issues
| Issue | Plaintiff's Argument (Leidos) | Defendant's Argument (Hellenic Republic) | Held |
|---|---|---|---|
| Whether Rule 59(e) permitted post-judgment conversion of a foreign-currency award to dollars | Leidos argued the court could amend judgment to convert to dollars using exchange rate at arbitral-award date to avoid injustice | Hellenic Republic argued conversion after final judgment was barred by Rule 59(e) because Leidos had repeatedly requested euros and could have sought dollars earlier | Reversed: Rule 59(e) cannot be used to convert judgment where claimant repeatedly requested foreign-currency judgment and only sought dollars post-judgment; conversion was not "manifest injustice" |
| Whether Rule 59(e) constraints differ for prevailing vs. losing parties | Leidos contended Rule 59(e) limitations on raising previously available arguments post-judgment do not apply because it was the prevailing party | Hellenic Republic contended Rule 59(e) applies irrespective of who won; finality protects all parties | Held: Rule 59(e) applies equally; prevailing-party status does not excuse raising new or previously available arguments after judgment |
| Whether entry of judgment in euros was erroneous or prejudicial to Leidos | Leidos argued entry in euros prejudiced its recovery due to subsequent currency decline | Hellenic Republic argued Leidos had repeatedly asked for euros and had notice of exchange-rate risk, so no prejudice | Held: Entry in euros was lawful and not prejudicial; Leidos had reasonable expectations and could have sought dollars earlier or hedged |
| Precedential effect of Continental Transfert for post-judgment currency conversion | Leidos relied on Continental Transfert (conversion affirmed) to justify post-judgment conversion | Hellenic Republic distinguished Continental Transfert on facts (complaint silent as to requested currency) | Held: Continental Transfert is inapplicable because Leidos explicitly requested euros earlier; silence in Continental justified conversion there but not here |
Key Cases Cited
- Koon v. United States, 518 U.S. 81 (discretion and abuse-of-discretion standard)
- Exxon Shipping Co. v. Baker, 554 U.S. 471 (Rule 59(e) not for relitigation or new theories)
- Plaut v. Spendthrift Farm, Inc., 514 U.S. 211 (importance of finality of judgments)
- Firestone v. Firestone, 76 F.3d 1205 (Rule 59(e) narrow grounds for reconsideration)
- District of Columbia v. Doe, 611 F.3d 888 (Rule 59(e) allows reconsideration, not initial consideration)
- Ciralsky v. CIA, 355 F.3d 661 (manifest injustice not shown where party could have acted earlier)
- Qwest Services Corp. v. FCC, 509 F.3d 531 (manifest injustice inquiry considers upset of settled expectations)
- In re Amoco Cadiz Oil Spill, 954 F.2d 1279 (history and treatment of foreign-currency judgments)
- Continental Transfert Technique Ltd. v. Federal Government of Nigeria, [citation="603 Fed. App'x 1"] (conversion affirmed where complaint was silent as to requested currency)