Articles Posted in U.S. Court of Appeals for the Second Circuit

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Defendants, the Donziger Firm and others, appealed the district court's grant of certain relief against them in favor of Chevron, in connection with an $8.646 billion judgment obtained against Chevron in Ecuador by the Lago Agrio Plaintiffs represented by the Donziger Firm. The judgment award was for environmental damage in connection with the Texaco oil exploration activities in Ecuador from the 1960s-1990s. On appeal, defendants challenge the district court's judgment, arguing principally that the action should have been dismissed on the ground that Chevron lacks Article III standing, and/or that the judgment should be reversed on the grounds, inter alia, that it violates principles of international comity and judicial estoppel, exceeds any legal authorization for equitable relief, and was entered without personal jurisdiction over defendants other than Donziger and his Firm. The court found no basis for dismissal or reversal in the absence of challenges to the district court's factual findings; considering the express disclaimers by the Ecuadorian appellate courts of their own jurisdiction to "hear and resolve" the above charges of corruption, "preserving the parties' rights" to pursue those charges in actions in the United States; and considering the district court's confinement of its injunction to a grant of in personam relief against the three defendants-appellants without disturbing the Ecuadorian judgment. Accordingly, the court affirmed the judgment. View "Chevron Corp. v. Donziger" on Justia Law

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Hapag‐Lloyd filed an Interpleader Complaint and moved ex parte for an anti‐suit injunction under 28 U.S.C. 2361. The district court granted the motion and enjoined named defendants. The court concluded that adjudication of Hapag‐Lloyd’s obligation to pay for the fuel bunkers at issue involves inextricably intertwined claims, and interpleader jurisdiction is proper under the broad and remedial nature of 28 U.S.C. 1335. The court also concluded that by initiating an interpleader concerning certain in rem claims and posting adequate security for those claims, Hapag‐Lloyd consented to the district court’s jurisdiction over its interests, which is sufficient to confer jurisdiction. However, the court remanded to the district court with instructions to enter an order that eliminates or retains the foreign scope of the injunction, with specific determinations applying the test in China Trade & Dev. Corp. v. M.V. Choong Yong. View "Hapag-Lloyd Aktiengesellschaft v. U.S. Oil Trading LLC" on Justia Law