Second Circuit – First Step Act: Petersen Energia; Eton Park et al. v. Argentie Argentine Republic, YPF S.A.

Listen to this article

United States Court of Appeals for the Second Circuit

 First Step Act — Time credits — Prerelease custody and supervised release

Petersen Energia; Eton Park et al. v. Argentie Argentine Republic, YPF S.A.

23-2377370(L); 23-7376(L)

Judges Cabranes, Chin, and Robinson

Background: The district court found that the Argentine Republic violated Argentine law by expropriating a majority of the company’s common shares in a manner that violated its bylaws, and it awarded a $16.1 billion judgment to the minority shareholders and found in favor for the company with respect to the claims made by shareholders against it. On appeal, the Argentine Republic argues the judgment rested on erroneous interpretations of Argentine law. The shareholders cross-appealed challenging the promissory estoppel claims against both defendants.

Ruling: The Second Circuit affirmed in part, reversed in part, and remanded. The court held that the shareholders’ breach of contract damages claims is not cognizable as a matter of Argentine law and that the remaining claims are without merit.

Paul D. Clement, of Clement & Murphy, for the plaintiff-appellees-cross-appellants; Robert J. Giuffra, Jr., of Sullivan & Cromwell, for the defendant-appellant-cross-appellee; and Mark P. Goodman, of Debevoise & Plimpton, for the defendant-conditional-cross-appellant.

Oral argument audio