As widely anticipated, on Friday, January 10, the Supreme Court agreed to hear Argentina’s Foreign Sovereign Immunities Act (FSIA) challenge to a discovery order entered by the Southern District and affirmed by the Second Circuit.
Argentina argues that ordering third parties to produce information about a sovereign’s assets, including assets located outside the United States, violates the FSIA. The Second and Seventh Circuits are divided on the question, which is one of the principal grounds for Supreme Court review.
This case should not be confused with the equal payment (pari passu) case that threatens to trigger an Argentine default if upheld. Although the cases are similarly named and both raise FSIA issues, different provisions of the Act are at issue and there is no clear division of the circuits in the pari passu case. Argentina’s petition for certiorari in that case is expected to be filed in the coming weeks.
For additional information on this case, please review our previous alerts:
Second Circuit Rules Against Argentina, Grants Stay for Certiorari Petition
NML Pulls no Punches in its Response to Argentina’s Ratable Payment Proposal
Argentina Stands Pat, Repeats Exchange Offer
Contacts
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DeSieno-TimothyThis article was originally published by Bingham McCutchen LLP.