YPF investors ask U.S. Supreme Court to revive $16.1 billion judgment against Argentina
By Natalia Siniawski and Leila Miller
Oct 1 (Reuters) - Investment firms Petersen Energia and Eton Park petitioned the U.S. Supreme Court on Wednesday to reinstate a $16.1 billion judgment against Argentina in the long-running YPF litigation.
The petition seeks to overturn a March decision by the 2nd U.S. Circuit Court of Appeals, which held the claims belonged in Argentine courts rather than the United States. That decision overturned a judgment entered after more than a decade of litigation. The investors argue the ruling improperly allows a foreign nation to rely on its own laws to avoid liability in U.S. courts.
BACKGROUND
The dispute centers on Argentina's 2012 nationalization of a controlling stake in YPF. Petersen and Eton Park allege Argentina violated YPF's bylaws by failing to launch a tender offer to minority shareholders after seizing a 51% stake from Spain's Repsol.
Argentina amended YPF's bylaws prior to its 1993 New York Stock Exchange listing to require a mandatory tender offer to all shareholders if the government ever regained majority control.
A U.S. district court had previously entered a $16.1 billion judgment — described in the petition as the largest commercial award in U.S. history — after a three-day damages trial.
KEY ARGUMENTS
The petition asks whether a foreign sovereign can use its own law to require claims to be brought to its domestic courts despite jurisdiction established under the Foreign Sovereign Immunities Act.
It also questions whether U.S. courts should defer to a sovereign's interpretation of its own law when that interpretation is first advanced on appeal.
The petition, filed by former U.S. Solicitor General Paul Clement, argues the 2nd Circuit decision conflicts with Supreme Court precedent and creates a split among federal appellate courts.
Argentina's presidential office did not immediately respond to requests for comment. YPF declined to comment.