Tag Archives: New York Convention

Case of the Day: Yukos Capital v. Samaraneftegaz

The case of the day is Yukos Capital S.A.R.L. v. Oio Samaraneftegaz (2d Cir. 2014). In 2004, Yukos loaned Samaraneftegaz almost 2.5 billion rubles. The loan agreement had an arbitration agreement providing for arbitration before the ICC. Samaraneftegaz defaulted, and Yukos demanded arbitration. Samaraneftegaz failed to participate, and eventually Yukos won a judgment for the full principal amount of the loan, plus more than 664 million rubles in interest and approximately $700,000 in fees and the costs of arbitration. The Russian courts refused recognition of the award, but the District Court in New York confirmed the award, entering a dollar-denominated judgment that used the exchange rate of the date of the award. Samaraneftegaz appealed.
Continue reading Case of the Day: Yukos Capital v. Samaraneftegaz

Case of the Day: Diag Human v. Czech Ministry of Health

The case of the day is Diag Human S.E. v. Czech Republic Ministry of Health (D.D.C. 2014). Diag Human was a Liechtenstein corporation. Its business, in the late twentieth century, was helping “currency-deficient Eastern Bloc states … acquire modern blood plasma technology.” After the fall of the Berlin Wall, Diag Human began to do business in the Czech Republic. One of Diag Human’s most important commercial partners was Novo Nordisk. The claim was that the Czech minister of health sent a letter to Novo Nordisk “intended to dissuade Novo Nordisk from continuing to do business with Diag.” The letter, according to Diag Human, “contained statements expressing concerns about Diag Human’s business ethics and credibility.” As a result, Novo Nordisk stopped doing business with Diag Human, leading, according to Diag Human, to “the collapse of its business in the Czech Republic.”
Continue reading Case of the Day: Diag Human v. Czech Ministry of Health

Case of the Day: Clientron Corp. v. Devon IT, Inc.

The case of the day, Clientron Corp. v. Devon IT, Inc. (E.D. Pa. 2014), seems flagrantly wrong. The facts were simple enough. Clientron was a Taiwan corporation. It had a contract with Devon, a Pennsylvania corporation, for the manufacture and delivery of computer components. The contract had an arbitration agreement. A dispute arose, and Clientron commenced an arbitration before the Chinese Arbitration Association in Taiwan. Although Devon argued that the dispute was not arbitrable, the tribunal determined that it had jurisdiction and entered an award for $6.5 million in favor of Clientron. Clientron obtained a judgment in Taiwan enforcing the arbitral award. There had been no decision in a revocation proceeding Devon had brought in Taiwan.
Continue reading Case of the Day: Clientron Corp. v. Devon IT, Inc.