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CHEVRON CORP. V. NARANJO: The Second Circuit Court of Appeals Rejects Global Anti-Suit Injunction

Written by  Douglas R. Moquet, Jr.

667 F.3d 232 (2d Cir. 2012)

INTRODUCTION

The U.S. Court of Appeals for the Second Circuit recently held that New York’s Uniform Foreign Country Money-Judgments Recognition Act did not authorize the district court to issue a preliminary injunction prohibiting Ecuadorian Amazon residents from enforcing a potential Ecuadorian judgment against a United States corporation anywhere outside the Republic of Ecuador. Where the judgment-creditors have yet to seek enforcement of the judgment in a court governed by New York or similar law, the Recognition Act does not allow a judgment-debtor to preemptively seek invalidation via a global anti-enforcement injunction. In the absence of such statutory authorization, the court declined to follow plaintiff-appellee’s argument that international comity did not forbid such an action, instead suggesting that it would likely provoke friction between legal systems. Finally, the court determined that the Federal Declaratory Judgment Act did not authorize the court to declare a foreign judgment null and void for all purposes in all countries, and rejected the notion that the judgment could be declared unenforceable only in New York.

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