Amorrortu v. Republic of Peru

570 F. Supp. 2d 916, 2008 U.S. Dist. LEXIS 86292, 2008 WL 3338029
District Court, S.D. Texas·Decided July 31, 2008·No. Civil Action 4:06-CV-04012·Published·Cited by 1 cases

Opinion

MEMORANDUM AND ORDER

KEITH P. ELLISON, District Judge.

Before the Court is Defendant’s Motion to Dismiss the Complaint (Doc. No. 23). The Motion requests dismissal under Federal Rules of Civil Procedure 12 for lack of subject matter jurisdiction, lack of personal jurisdiction, and failure to state a claim; the Motion also argues that the Complaint should be dismissed because it has been filed in an inconvenient forum. After carefully considering the Motion, the responses and replies thereto, and all applicable law, the Court finds that it lacks subject matter jurisdiction under Rule 12(b)(1) and the Foreign Sovereign Immunities Act of 1976 (“FSIA”), 28 U.S.C. §§ 1602 et seq., and therefore the case must be dismissed.

I. BACKGROUND

Pro se Plaintiff Bacilio A. Amorrortu (“Amorrortu”) files this lawsuit against Defendant Republic of Peru making the following claims: “Political Persecution,” “Confiscation of Assets and Loss of Opportunities,” “Misconduct and Negligence,” “Pain and Suffering,” and “Economical Torture.” (Compl., Doc. No. 1, at 9-11.) In total, Plaintiff seeks to recover $37 million, plus costs, for his alleged injuries. (Compl. Doc. No. 1, at 11.) According to his Complaint, the factual bases for these allegations are as follows.

1. Non-payment of Debts

Since at least 1992, Propetsa, an oil company, has allegedly been owed a debt of six million dollars (US) by PetroPeru, another oil company. (Compl., Doc. No. 1, at 3.) Amorrortu, writing in the third person, describes Propetsa as having been “his oil company” at the times the alleged debt accrued and came due, and he describes PetroPeru as having been “the Peruvian State oil company” at those times. (Compl., Doc. No. 1, at 3.) The origins of this debt are not clearly explained in the Complaint. Amorrortu alleges that the “Peruvian State Comptrollership,” apparently a Peruvian auditing authority, acknowledged this debt on behalf of the Republic of Peru on June 5, 1992 when it issued a “Special Analysis.” (Compl., Doc. No. 1, at 4.) Nonetheless, Defendant Republic of Peru, which Amorrortu alleges was responsible for this debt, has not paid Propetsa this money. (Compl., Doc. No. 1, at 4.) Amorrortu describes this non-payment as “a confiscation act,” (Compl., Doc. No. 1, at 3-4), and alleges that its result was that Propetsa was unable to “participate in the purchase of profitable PetroPeru units under a privatization process in the period of 1992 to 1996.” (Compl., Doc. No. 1, at 4.) In 1995, Amorrortu alleges, he unsuccessfully sought redress on behalf of Propetsa in Peruvian courts by filing a lawsuit for forty million dollars (U.S.) against PetroPeru. (Compl., Doc. No. 1, *919 at 4.) According to the Complaint, Amorrortu did not prevail in his case, but he attributes the negative result of his case to the shortcomings of the “corrupt” and “inefficient” Peruvian judiciary. (Compl., Doc. No. 1, at 4, citation omitted.) 1

Also in 1995, Amorrortu, acting as President and CEO of Propetsa, allegedly signed an agreement with Swiss Bank Corporation (“SBC”) under the law of New York relating to PetroPeru’s debt. (Compl., Doc. No. 1, at 4-5.) According to the Complaint, the agreement was effected under “The Peruvian Brady Plan,” which “permitted ... the Peruvian State to solve [sic] and pay claims to private companies,” and it provided for SBC to “assume[ ] ‘the Claims’ to pay to Propetsa [sic].” (Compl., Doc. No. 1, at 4-5.) The Court is not entirely clear about the meaning of these allegations, but its best interpretation is that Amorrortu, on behalf of Propetsa, sold his right to receive the six million dollars from the Republic of Peru to SBC. According to the Complaint, “months later,” an “SBC banker told Amorrortu that the Peruvian State did not want SBC to pay Propetsa due political reasons [sic].” (Compl., Doc. No. 1, at 5.) Amorrortu alleges that he responded by asking SBC to “pull out from Peru his expensive oil rigs to be moved to Houston, Texas,” apparently because he was afraid they would be confiscated. (Compl., Doc. No. 1, at 5.) In December of 1996, SBC allegedly responded by unilaterally terminating the agreement over Amorrortu’s objections. (Compl., Doc. No. 1, at 5). Subsequently, on March 21, 1999, Amorrortu alleges that an article “appeared in the main Peruvian newspaper a public Peruvian State advertising disclosing [sic] that SBC was a solely Peruvian State agent during the Peruvian Brady Plans negotiations during the period of time 1994-1997.” (Compl., Doc. No. 1, at 5.) 2

According to the Complaint, Amorrortu’s concern that Propetsa’s assets would be confiscated came to fruition, although the Complaint is unclear about the time-line of confiscation. (Compl., Doc. No. 1, at 5-6.) Propetsa was allegedly “shut[] down completely in 1996,” and from 1999 to 2006, he alleges, the Republic of Peru sold the confiscated assets, including oil rigs and oil equipment. (Compl., Doc. No. 1, at 6.) He further alleges that, in 2005, the Republic of Peru “executed or permitted the demolition of the expensive 3 acre Propetsa’s Shop-Plant.” (Compl., Doc. No. 1, at 6.) It bears mention that Amorrortu’s complaint alleges that he was “unlawfully fired from Propetsa’s Chairman chair” in 1999 (Compl., Doc. No. 1, at 4), after which time Amorrortu alleges that he remained a shareholder with a 26% stake *920 in the company. (Compl., Doc. No. 1, at 9). Amorrortu’s lawsuit, however, is brought solely in his individual capacity. (Compl., Doc. No. 1, at 1.)

2. Political Persecution

Amorrortu also bases his claims on the alleged political persecution he has suffered as a result of his activities as the leader of a political party in Peru, “En Acción.” (Compl., Doc. No. 1, at 6.) He claims that his efforts to run for the presidency of Peru were thwarted in 1992, when his petition to join the race was allegedly rejected by the state and on appeal by the Organization of American States, and again in 1994, although the circumstances of these latter efforts are unclear from the Complaint. (Compl., Doc. No. 1, at 6-7.) Amorrortu further alleges that the Peruvian government “implemented a cruel plan of economical [sic] deterioration” that prevented him from earning income or finding work. (Compl., Doc. No. I, at 6-7.) The Complaint does not offer any further details about how the Republic of Peru did so. It is notable, however, that according to the Complaint, Amorrortu alleges that he is now a political asylee in the United States. (Compl., Doc. No. 1, at 1.)

II. LEGAL STANDARDS

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Amorrortu v. Republic of Peru, 570 F. Supp. 2d 916, 2008 U.S. Dist. LEXIS 86292, 2008 WL 3338029 (S.D. Tex. 2008).

570 F. Supp. 2d 916 (Amorrortu v. Republic of Peru) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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