Pharo Gaia Fund, Ltd. v. Bolivarian Republic of Venezuela

Background

Plaintiffs sued the Bolivarian Republic of Venezuela for breaching contracts by failing to make required payments on eight series of bonds. Venezuela did not appear in the case. On October 7, 2021, the court entered a default judgment requiring Venezuela to pay plaintiffs more than $1.3 billion. The opinion later refers to the judgment as having been entered on October 25, 2021. Plaintiffs stated that Venezuela had made no payments on the judgment.

Plaintiffs moved for an order finding that a reasonable period had passed since judgment under 28 U.S.C. § 1610(c). That statute addresses when certain property of an agency or instrumentality of a foreign state located in the United States may be attached or used to satisfy a judgment.

Court’s reasoning

The Foreign Sovereign Immunities Act does not define “reasonable time.” The court explained that relevant considerations can include procedures or legislation needed for a foreign state to pay a judgment, representations or other steps toward payment, and evidence that the foreign state may remove assets to frustrate collection.

The court emphasized that more than 25 months had passed since the judgment. It cited decisions finding reasonable periods of three months, six weeks, two months, two months, and five months in other cases. The court also relied on its ruling in a prior related proceeding, in which it found that seven months was a reasonable period after judgment. The court stated that it saw no reason to change that earlier reasoning.

Disposition

The court granted plaintiffs’ motion for an order finding that a reasonable period had elapsed following entry of judgment under § 1610(c). The Clerk of Court was directed to terminate the motion at ECF No. 36. The opinion does not state that the court separately ordered attachment or execution of property.