502 F. App'x 19
2d Cir.2012Background
- BNA is a commercial bank wholly owned by Argentina; plaintiffs seek to hold BNA liable as Argentina’s alter ego under FSIA and to reach BNA assets to satisfy a judgment for Argentina’s sovereign debt default.
- District court granted summary judgment for Argentina and BNA, finding no basis to pierce BNA’s separate corporate identity.
- Plaintiffs sought jurisdictional discovery under FSIA to establish alter ego status and to oppose summary judgment; district court denied discovery.
- Appellants challenge both the denial of jurisdictional discovery and the grant of summary judgment.
- Court reviews discovery abuse for abuse of discretion and summary judgment de novo; record shows no genuine issue of material fact on alter ego control over BNA.
- Court affirms district court’s denial of jurisdictional discovery and its grant of summary judgment, rejecting plaintiffs’ alter ego theory and finding no abuse of corporate form by BNA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court abused its discretion denying jurisdictional discovery | Seijas argues BNA is alter ego; discovery needed to show jurisdiction | Court properly refused discovery absent prima facie jurisdiction | No abuse; denial upheld |
| Whether summary judgment on alter ego claim was proper | BNA/BNA’s control over BNA indicates alter ego status | Evidence shows independent instrumentality; no extensive control | Summary judgment affirmed; no genuine issue of control or abuse of form |
Key Cases Cited
- First Nat’l City Bank v. Banco Para El Comercio Exterior de Cuba, 462 U.S. 611 (U.S. (1983)) (alter ego and Bancec framework; government control not automatic alter ego)
- Bancec v. Desoto Intl., Inc., 462 U.S. 611 (U.S. (1983)) (presumptively separate legal identity of instrumentalities; extensive control required to pierce)
- Transamerica Leasing, Inc. v. La Republica de Venezuela, 200 F.3d 843 (D.C. Cir. 2000) (majority control not alone enough to render alter ego; check for abuse of corporate form)
- LNC Invs., Inc. v. Republic of Nicaragua, 228 F.3d 423 (2d Cir. 2000) (state’s majority control of instrumentality is typical and not sufficient for alter ego)
- First City, Tex.-Hous., N.A. v. Rafidain Bank, 150 F.3d 172 (2d Cir. 1998) (comity and prima facie jurisdiction requirements for jurisdictional discovery under FSIA)
- De Letelier v. Republic of Chile, 748 F.2d 795 (2d Cir. 1984) (abuse of corporate form requires more than nominal control; presumption of separateness matters)