July 12, 2024
Partner Michael Gottlieb was named Litigator of the Week, alongside Igor Timofeyev of Paul Hastings, for securing a critical victory in the Second Circuit Court of Appeals on behalf of PDV Holding, Inc. (PDVH), a CITGO U.S. holding company, along with Petrόleos de Venezuela S.A. (PDVSA), and PDVSA Petrόleo, S.A. Last week, the Second Circuit decided that Venezuelan law rather than New York law should govern the validity of bonds issued by PDVSA—which are valued at more than $1.9 billion and implicate ownership of a controlling share in the parent company of U.S.-based refiner CITGO Petroleum Corporation (CITGO). This is the latest development in the case, which was originally launched in 2019.
The article credited the rest of the Willkie team in addition to Mike, which included partners Kristin Bender, Jeff Korn and Nick Reddick, associates Melissa Taustine, Amanda Payne, Tim Ryan, Alexis Dorner and Charlene Ni, and paralegal Monica Jones.
In the Q&A article, Mike discussed collaborating with co-counsel, Willkie’s history with CITGO and its affiliates, the U.S. Government’s position on the dispute, the significance of this latest Second Circuit decision, and what he will remember most about this result, among other topics.
In discussing collaboration with co-counsel, Mike explained, “From the filing of this litigation through the most recent appellate proceedings, Paul Hastings and Willkie have worked seamlessly together as what we like to call a ‘virtual firm,’ with each firm taking the lead on different issues as circumstances require.”
Mike went on to highlight the importance of this Second Circuit decision, noting that the decision is significant because it wipes the bondholders’ $1.9 billion judgment off the books, and confirms that the validity of the 2020 bonds must be decided as a matter of Venezuelan law. He also explained that the significance of this decision extends beyond this particular case. “As the Republic and a group of legal scholars argued as amici, before the Second Circuit and New York Court of Appeals, the application of foreign law to the validity of foreign sovereign debt issuances is significant for the promotion of democracy and the rule of law. This is particularly so in Latin America, which has experience with corrupt efforts by repressive regimes that have sought to circumvent democratically-elected legislatures, as Maduro attempted to do with the 2016 Exchange Offer. By establishing that the constitutional restrictions imposed by an issuer’s jurisdiction governs the validity of this kind of debt, this case reinforces that New York law will not serve as a safe haven for foreign leaders seeking to circumvent the will of their people.”
In discussing what he will remember most, Mike highlighted the Second Circuit argument. “As for this particular result, I will remember the virtual argument before the Second Circuit on Jan. 26, 2022, which was a marathon argument (happening to fall on my birthday) lasting for more than two hours with active questioning from the full panel. When the argument finished, while we thought it was possible that the case might be certified, we certainly did not come close to predicting all of the twists and turns we would face between then and now!”
Read The AmLaw Litigation Daily “Litigator of the Week” article here (subscription may be required).
Read more about the case here.
The article credited the rest of the Willkie team in addition to Mike, which included partners Kristin Bender, Jeff Korn and Nick Reddick, associates Melissa Taustine, Amanda Payne, Tim Ryan, Alexis Dorner and Charlene Ni, and paralegal Monica Jones.
In the Q&A article, Mike discussed collaborating with co-counsel, Willkie’s history with CITGO and its affiliates, the U.S. Government’s position on the dispute, the significance of this latest Second Circuit decision, and what he will remember most about this result, among other topics.
In discussing collaboration with co-counsel, Mike explained, “From the filing of this litigation through the most recent appellate proceedings, Paul Hastings and Willkie have worked seamlessly together as what we like to call a ‘virtual firm,’ with each firm taking the lead on different issues as circumstances require.”
Mike went on to highlight the importance of this Second Circuit decision, noting that the decision is significant because it wipes the bondholders’ $1.9 billion judgment off the books, and confirms that the validity of the 2020 bonds must be decided as a matter of Venezuelan law. He also explained that the significance of this decision extends beyond this particular case. “As the Republic and a group of legal scholars argued as amici, before the Second Circuit and New York Court of Appeals, the application of foreign law to the validity of foreign sovereign debt issuances is significant for the promotion of democracy and the rule of law. This is particularly so in Latin America, which has experience with corrupt efforts by repressive regimes that have sought to circumvent democratically-elected legislatures, as Maduro attempted to do with the 2016 Exchange Offer. By establishing that the constitutional restrictions imposed by an issuer’s jurisdiction governs the validity of this kind of debt, this case reinforces that New York law will not serve as a safe haven for foreign leaders seeking to circumvent the will of their people.”
In discussing what he will remember most, Mike highlighted the Second Circuit argument. “As for this particular result, I will remember the virtual argument before the Second Circuit on Jan. 26, 2022, which was a marathon argument (happening to fall on my birthday) lasting for more than two hours with active questioning from the full panel. When the argument finished, while we thought it was possible that the case might be certified, we certainly did not come close to predicting all of the twists and turns we would face between then and now!”
Read The AmLaw Litigation Daily “Litigator of the Week” article here (subscription may be required).
Read more about the case here.
