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Case Report by Timothy Chorba, Editor Diego Luis Alonso Massa
In a decision issued on September 30, 2016, the U.S. District Court for the District of Delaware considered a 12(b)(6) motion to dismiss for failure to state a claim filed by the Defendants PDV Holding, Inc. and CITGO Holding, Inc. Plaintiff Crystallex International Corporation had filed a common law civil conspiracy claim as well as a Delaware Uniform Fraudulent Transfer Act ("DUFTA"), 6 Del. C. § 1301 et seq. claim against the Defendants. In its decision, the Court dismissed the Plaintiff's civil conspiracy claim owing to Delaware law disallowing such a claim to be based on a theory of fraudulent transfer; at the same time, narrowly declined to dismiss the Plaintiff's DUFTA claim. The Court also addressed additional arguments the Defendants brought in arguing for their Motion to Dismiss: that Plaintiff's claims were barred under the Foreign Sovereign Immunities Act ("FSIA") and, alternatively, the Act of State Doctrine. Ultimately, the Court also sided with the Plaintiffs on these arguments as well, denying the motion on either basis. Under DUFTA, however, the Court held that CITGO Holding, Inc. was not a statutory "transferor" and dismissed it from the case.
Claims under the Delaware Uniform Fraudulent Transfer Act ("DUFTA"); application of the Foreign Sovereign Immunities Act ("FSIA"); Act of State Doctrine.
TDM IACL Case Report Crystallex International Corp. v. Petróleos de Venezuela, S.A.; PDV Holding, Inc.; and Citgo Holding, Inc., f/k/a PDV America, Inc. - Civil Action No. 15-1082-LPS. United States District Court, D. Delaware - Memorandum Opinion - 30 September 2016
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