JPMorgan Chase Bank, N.A. v. VTB Bank, P.J.S.C.
- Lorna Schofield
- 1:24-cv-02924
- U.S. District Court · Southern District of New York
- 2
In JPMorgan Chase v. VTB, Judge Schofield fined VTB $500,000 for failing to comply with an earlier contempt order.
VTB Bank, P.J.S.C. was ordered to pay $500,000 to the Clerk of Court and could face further sanctions for noncompliance. JPMorgan Chase Bank, N.A. could potentially receive compensatory sanctions from funds deposited with the court.
What happened
JPMorgan Chase Bank, N.A. v. VTB Bank, P.J.S.C. involved VTB Bank’s alleged failure to comply with a July 29, 2024, order finding it in civil contempt for violating an earlier preliminary injunction. The order required VTB to take specified steps in a Russian court proceeding by August 5 or pay a $500,000 fine.
VTB did not file proof of compliance or another filing on the docket after the July 29 order. JPMorgan Chase told the court that VTB had filed a motion in the Russian proceedings seeking clarification about whether ending the federal case would also end related court orders, including interim measures.
Judge Lorna G. Schofield ordered VTB to pay a $500,000 fine to the court clerk within one week. She stated that the July 29 order remained in effect unless changed by the court, warned that noncompliance could lead to additional sanctions, and reserved the possibility of awarding compensatory sanctions to JPMorgan Chase.
The detailed version
- JPMorgan Chase Bank, N.A. v. VTB Bank, P.J.S.C. · No. 1:24-cv-02924
- Lorna Schofield
- Aug. 6, 2024
Background
In an order dated July 29, 2024, the court found VTB Bank, P.J.S.C. in civil contempt for violating an April 26, 2024, preliminary injunction. Among other relief, the July 29 order required VTB, by August 5, 2024, to move to stay a Russian court action, including by expressly seeking to lift or stay a permanent order barring litigation in another court so that the federal case could proceed. The order alternatively required VTB to file proof of compliance or pay a $500,000 fine.
Events Before This Order
VTB did not file proof of compliance or any other filing on the federal docket after the July 29 order. On August 5, 2024, JPMorgan Chase filed a letter stating that VTB had filed a motion on August 2 in the Russian court proceedings. The motion sought clarification of whether ending the federal case would also terminate all judicial acts in that case, including interim measures, and specifically referred to the court’s July 29 order.
Ruling
The court ordered VTB to pay the $500,000 fine required by the July 29 order. VTB had to pay the fine to the Clerk of Court within one week of August 6, 2024. Judge Lorna G. Schofield warned that failure to comply could result in further sanctions. She also stated that the July 29 order remained in effect unless and until modified by court order, even if the federal case were dismissed, and reserved the right to award compensatory sanctions to JPMorgan Chase from money VTB deposited with the court.
Effect of the Order
The order imposed a $500,000 civil-contempt fine against VTB. It did not state that VTB had paid the fine, and it did not modify the July 29 order.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.