Enforcement of judgments

Pages80-82
80 Volume 21, July–September 2015 international law update
© 2015 International Law Group, LLC. All rights reserved. ISSN 1089-5450, ISSN 1943-1287 (on-line) | www.internationallawupdate.com
309 U.S. 323, 330 (1940) […]. at is not this
case. e Southern District order compelling
BBVAs compliance with the challenged subpoena
was in furtherance of collection proceedings against
Cuba that were, and remain, pending in that court,
not in some other tribunal.”
“e same reasoning defeats BBVAs reliance
on 28 U.S.C. § 1782 to establish the nality of
the challenged orders. Section 1782(a) allows
United States courts to order discovery ‘for use in
a proceeding in a foreign or international tribunal.’
Because the issuance of such an order concludes all
proceedings before the issuing district court, we
have recognized § 1782 orders as nal decisions
subject to immediate appeal. See Chevron Corp. v.
Berlinger, 629 F.3d 297, 306 (2d Cir. 2011). But
BBVA was not here subpoenaed to provide discovery
for use in a foreign tribunal; it was subpoenaed to
provide information in a collection proceeding
pending in the Southern District—the same court
that issued the discovery order in question. […]”
e Court thus held that “[…] the nality
of the underlying Florida judgment does not
determine the nality of the enforcement order
issued by the district court. See EM Ltd. v.
Republic of Argentina, 695 F.3d at 205. Whether
or not the district court’s turnover order is a nal
decision as to assets already identied and subject
to writs of execution, that order plainly does not
encompass the unidentied extraterritorial assets
that are the subject of the challenged orders. As for
the registration and collection action, because we
have above determined that it is not yet concluded,
an order enforcing a subpoena issued in that action
is not a nal decision. See In re Air Crash at Belle
Harbor, 490 F.3d at 10405.” And concluded that it
lacks jurisdiction under 28 U.S.C. § 1291 to review
these orders.
e Court dismissed BBVAs appeals for lack
of jurisdiction and denied the stay motion as moot.
citation: Vera v. Republic of Cuba, 802 F.3d 242
(2nd Cir. 2015).
ENFORCEMENT
OF JUDGMENTS
In case where investors seek to enforce
$122 million Moroccan judgment in
Texas, Fifth Circuit reviews whether
district court correctly refused
to recognize the judgment based on
Morocco’s purported lack of judicial
safeguards
John Paul DeJoria (“DeJoria”), a major
investor in an American company called Skidmore
Energy, Inc. (“Skidmore”), formed and capitalized
a Moroccan corporation, Lone Star Energy
Corporation (“Lone Star”) in order to engage in oil
exploration and technology projects in Morocco.
Because a corporation established under Moroccan
law is required to have a “local” shareholder, for Lone
Star that local shareholder was Mediholding, S.A.
owned by Prince Moulay Abdallah Alaoui, a rst
cousin of the Moroccan King, King Mohammed VI.
In March 2000, Lone Star entered into an
“Investment Agreement” obligating it to invest
in hydrocarbon exploration in Morocco. In order
to ensure adequate funding, King Mohammed
lined up additional investors, Armadillo Holdings
(“Armadillo”) (now Mideast Fund for Morocco,
or “MFM”), a Liechtenstein — based company.
During the agreement negotiations, Skidmore
represented to Armadillo that it invested $27.5
million in Lone Star and that Lone Star’s market
value was roughly $175.75 million.
In August 2000, King Mohammed announced
the discovery of “copious and high-quality oil”
in Morocco, however, the oil reserves were not as
plentiful as announced. is damaged both the
Moroccan government’s credibility and Lone Star’s
viability. e business relationship between MFM
and Skidmore/DeJoria also suered. MFM then
sued Skidmore, DeJoria, Gustin, and a number
of other Skidmore ocers in their individual
capacities in Moroccan court, asserting that
Skidmore fraudulently induced its investment
by misrepresenting Skidmore’s actual investment

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