Civil Contempt Orders Against Non-Parties in Parallel Proceedings
Among the challenges U.S. courts face in managing parallel litigation is enforcing any anti-suit injunctions they might order. In this regard, one of the most important enforcement tools they have at their disposal is the power to impose contempt sanctions in response to violations of their orders. The authority of a court to hold the…
Continue ReadingChoice of Law in Shareholder Derivative Litigation
U.S.-based investors hold trillions of dollars in equity of foreign companies. In the event of corporate wrongdoing, those investors may want to initiate shareholder derivative litigation in the United States against the managers of those corporations. This form of litigation is brought on behalf of the corporation itself rather than as a direct action. Derivative…
Continue ReadingSDNY Grants Anti-Suit Injunction Against TV Azteca
For the past several years, parallel litigation has been ongoing in Mexico and the United States between the Mexican media conglomerate TV Azteca, S.A.B. de C.V. and The Bank of New York Mellon (BNY), the Indenture Trustee for a series of TV Azteca’s unsecured notes. Two weeks ago, Judge Paul G. Gardephe (SDNY) granted BNY’s…
Continue ReadingMaximum Comity: Recognition of Foreign Proceedings Under the Bankruptcy Code
Chapter 15 of the U.S. Bankruptcy Code governs cross-border insolvency proceedings. It establishes a comity-based framework within which U.S. courts may recognize certain foreign insolvency proceedings and enforce orders issued in those proceedings. Like other U.S. law on the recognition of foreign proceedings, it includes a public policy exception. This post provides a brief overview…
Continue ReadingFederal Court Issues Worldwide Anti-Enforcement Injunction
Last month, Judge Edward Davila (Northern District of California) granted a motion by Google for a rare type of equitable relief: a worldwide anti-enforcement injunction. In Google v. Nao Tsargrad Media, a Russian media company obtained a judgment against Google in Russia and then began proceedings to enforce it in nine different countries. Arguing that…
Continue ReadingDistrict Court’s Order in the Venezuelan Deportees Case Was Not Extraterritorial
As was widely reported yesterday, the Trump administration permitted two planes carrying Venezuelan deportees to continue on their way to El Salvador after receiving a judicial order to turn the flights back to the United States. A story in Axios quotes an administration official who explains that they were not in fact “actively defying” the…
Continue ReadingNew Essay on Anti-Enforcement Injunctions
In a symposium issue honoring Linda Silberman, the NYU Journal of International Law and Politics has just published an essay that Ralf Michaels and I wrote on anti-enforcement injunctions. In the United States, the best-known example of this type of order is the one entered by the Southern District of New York in the infamous…
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