522 F. App'x 88
2d Cir.2013Background
- PDVSA is a Venezuelan state-owned entity; Skanga sues PDVSA under FSIA to anchor jurisdiction in the US.
- The district court analyzed whether the FSIA commercial activities exception (§ 1605(a)(2)) applies.
- Skanga alleged an agency relationship between Arevenca S.A. and PDVSA supported jurisdiction.
- Skanga provided circumstantial evidence (statements by Arrundell and a bill of lading with PDVSA’s logo).
- PDVSA failed to show Arevenca lacked authority, resulting in no genuine factual dispute about agency.
- The district court held PDVSA’s activities caused a direct effect in the United States; the Second Circuit affirms.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an agency relationship existed between Arevenca and PDVSA. | Skanga showed agency by allegations and documents. | PDVSA produced no evidence of an agency control. | Agency shown; no factual dispute. |
| Whether PDVSA’s commercial activities caused a direct effect in the US under §1605(a)(2). | Undisputed allegations show a direct effect. | No direct effect established. | Direct effect shown; exemption not defeated. |
| Appropriate standard of review for FSIA jurisdiction findings. | District court factual findings reviewable for clear error; legal conclusions de novo. | Standard remains as stated by court. | Standard applied correctly. |
Key Cases Cited
- Robinson v. Gov’t of Malaysia, 269 F.3d 133 (2d Cir. 2001) (standard: factual findings reviewed for clear error; legal conclusions de novo; burden on plaintiff to show jurisdictional facts)
- USAA Cas. Ins. Co. v. Permanent Mission of the Republic of Namibia, 681 F.3d 103 (2d Cir. 2012) (jurisdiction requires plaintiff to show exceptions to immunity by evidence)
- Rogers v. Petroleo Brasileiro, S.A., 673 F.3d 131 (2d Cir. 2012) (burden on plaintiff to carry burden of production on jurisdiction)
- Virtual Countries, Inc. v. Republic of South Africa, 300 F.3d 230 (2d Cir. 2002) (no factual dispute where defendant offers no contrary evidence)
