La Dolce Vita Fine Dining Company Limited v. Lan

Background

La Dolce Vita Fine Dining Company Limited and La Dolce Vita Fine Dining Group Holdings Limited obtained two arbitration awards in April 2019 against Zhang Lan, Grand Lan Holdings Group (BVI) Limited, and Qiao Jiang Lan Development Limited. The respondents were jointly and severally liable for a combined $142,463,666.28, plus interest. The Second China International Commercial Court affirmed the awards and dismissed the applications to set them aside. The opinion states that those decisions were final and not subject to appeal.

In a related attachment proceeding, the court attached a condominium apartment at 20 West 53rd Street, Apartment 39A, New York, New York. The petitioners posted a $150,000 bond as security for that attachment. Deutsche Bank later began a foreclosure action involving the apartment. A later order allowed Deutsche Bank to proceed with the sale while attaching any surplus sale proceeds—money remaining after transaction costs, taxes, and specified liens.

Proceedings in This Case

The petitioners filed this action seeking confirmation of the arbitration awards under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly called the New York Convention. They also sought a judgment against Zhang limited to the surplus proceeds from the apartment's sale.

Magistrate Judge Willis recommended granting the petition. Zhang objected. In a February 10, 2023 memorandum opinion, the court overruled Zhang's objection and granted the petition, finding that Zhang had an interest in the apartment sufficient to support the court's authority over the property for purposes of the requested relief and confirming the arbitration awards under the New York Convention.

Judgment

Judge Lewis A. Kaplan entered judgment as follows:

- The arbitration awards were confirmed under the New York Convention. - The petitioners may execute on all surplus proceeds from the apartment's sale, whether the sale occurs privately or at the scheduled public auction. The proceeds must be paid under the procedures governing distribution in the foreclosure judgment, or any amendment to it. - After receiving any surplus proceeds, the petitioners must promptly file a satisfaction of judgment. That filing will bar further efforts to enforce this judgment, but neither the judgment nor the satisfaction filing prevents the petitioners from pursuing other proceedings to enforce any unpaid amount of the arbitration awards. - After receiving the required satisfaction filing, the Clerk must return the petitioners' $150,000 bond to their counsel of record. - The court retained jurisdiction to resolve disputes arising from or related to the judgment.