In Re ALBA Petróleos De El Salvador S.E.M. De C.V.

82 F.4th 105
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 18, 2023
Docket22-317
StatusPublished
Cited by4 cases

This text of 82 F.4th 105 (In Re ALBA Petróleos De El Salvador S.E.M. De C.V.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re ALBA Petróleos De El Salvador S.E.M. De C.V., 82 F.4th 105 (2d Cir. 2023).

Opinion

22-317-cv In re ALBA Petróleos de El Salvador S.E.M. de C.V.

United States Court of Appeals for the Second Circuit

August Term 2022 Submitted: March 17, 2023 Decided: September 18, 2023

No. 22-317

IN RE ALBA PETRÓLEOS DE EL SALVADOR S.E.M. DE C.V. *

On Appeal from the United States District Court for the District of Connecticut

Before: PARK and LEE, Circuit Judges, and STEIN, District Judge. †

This case involves a dispute between two law firms, each of which claims the right to represent a Salvadoran company in its efforts to stave off a transnational judgment-collection effort. Specifically, the two firms are vying to defend ALBA Petróleos de El Salvador S.E.M. de C.V. (“ALBA”) in the U.S. District Court for the District of Connecticut from the enforcement of a $45 million default

*The Clerk of Court is respectfully directed to amend the caption accordingly. †Judge Sidney H. Stein of the United States District Court for the Southern District of New York, sitting by designation. judgment obtained against Colombian narco-terrorist organizations. Marcos D. Jiménez appeared to represent ALBA. White & Case LLP moved to substitute itself as ALBA’s counsel. Both purport to represent ALBA. White & Case argued that the political-question doctrine, the act-of-state doctrine, and Venezuelan law required the district court (Meyer, J.) to allow it to represent ALBA. Jiménez responded that he had the right to represent ALBA under Salvadoran law. The district court denied White & Case’s motion, holding that the issue was governed by Salvadoran law, which authorized Jiménez’s representation. White & Case filed an interlocutory appeal and, in the alternative, a petition for a writ of mandamus. We lack appellate jurisdiction over this interlocutory appeal of the denial of a third-party motion to substitute counsel. Such an appeal fails to satisfy the requirements of the collateral order doctrine because the denial of a motion to substitute counsel is effectively reviewable after final judgment and does not implicate an important issue separate from the merits of the underlying action. White & Case also does not meet the demanding standard required to obtain a writ of mandamus. We thus DISMISS the appeal and DENY the petition for a writ of mandamus.

Claire A. DeLelle, Nicole Erb, Susan Grace, White & Case LLP, Washington, DC, for Appellant.

Marcos D. Jiménez, León Cosgrove Jiménez, LLP, Miami, FL, for Appellee.

PARK, Circuit Judge:

This case involves a dispute between two law firms, each of which claims the right to represent a Salvadoran company in its efforts to stave off a transnational judgment-collection effort.

2 Specifically, the two firms are vying to defend ALBA Petróleos de El Salvador S.E.M. de C.V. (“ALBA”) in the U.S. District Court for the District of Connecticut from the enforcement of a $45 million default judgment obtained against Colombian narco-terrorist organizations. Marcos D. Jiménez appeared to represent ALBA. 1 White & Case LLP moved to substitute itself as ALBA’s counsel. Both purport to represent ALBA. White & Case argued that the political-question doctrine, the act-of-state doctrine, and Venezuelan law required the district court (Meyer, J.) to allow it to represent ALBA. Jiménez responded that he had the right to represent ALBA under Salvadoran law. The district court denied White & Case’s motion, holding that Salvadoran law governed and authorized Jiménez’s representation. White & Case filed this interlocutory appeal and, in the alternative, a petition for a writ of mandamus.

We lack appellate jurisdiction over this interlocutory appeal of the denial of a third-party motion to substitute counsel. Such an appeal fails to satisfy the requirements of the collateral order doctrine because the denial of a motion to substitute counsel is effectively reviewable after final judgment and does not implicate an important issue separate from the merits of the underlying action. White & Case also does not meet the demanding standard required to obtain a writ of mandamus. We thus dismiss the appeal and deny the petition for a writ of mandamus.

1 Jiménez was a sole practitioner during the trial court proceedings but joined León Cosgrove Jiménez, LLP during the pendency of this appeal.

3 I. BACKGROUND

A. ALBA

ALBA is a Salvadoran corporation that distributes Venezuelan oil in El Salvador. ALBA has two shareholders. The majority shareholder, with sixty percent ownership, is a subsidiary of Petróleos de Venezuela, S.A. (“PDVSA”), the national oil company of Venezuela. The minority shareholder is a nonprofit organization owned by a group of Salvadoran municipalities. The minority shareholder appointed Jaime Alberto Recinos Crespin, a Salvadoran national, to the ALBA board, and Crespin also serves as ALBA’s legal representative.

B. The Caballero Litigation

The plaintiff in the underlying lawsuit is Antonio Caballero, whose father, a former Colombian ambassador to the United Nations, was kidnapped, tortured, and assassinated by the Revolutionary Armed Forces of Colombia (“FARC”). See Caballero v. Fuerzas Armadas Revolucionarias de Colombia, No. 18-cv-25337, 2020 WL 7481302, at *1 (S.D. Fla. May 20, 2020). Caballero sued FARC and the Norte de Valle Cartel in the U.S. District Court for the Southern District of Florida under the Anti-Terrorism Act, 18 U.S.C. § 2333, and obtained a default judgment of over $45 million. See id. at *7.

Caballero alleges that ALBA is an agency or instrumentality of FARC due to its connection to PDVSA. He sued ALBA in the U.S. District Court for the District of Connecticut, seeking to enforce the default judgment from the Southern District of Florida against ALBA’s account at Interactive Brokers, LLC of Greenwich,

4 Connecticut. Initially, no parties appeared to oppose Caballero, so the district court entered a default judgment. 2

Following the entry of default judgment, ALBA sought to intervene, represented by Jiménez and his local counsel. White & Case and its local counsel then moved to substitute themselves for Jiménez as ALBA’s counsel. The district court held its decision on the motion to intervene pending its ruling on the motion to substitute counsel. It ordered the attorneys to brief their authority to act for ALBA.

Developments in Venezuela provide context for the disagreement. Beginning in 2019, two groups claimed control of the Venezuelan government: one affiliated with Nicolás Maduro and the other with Juan Guaidó. The United States and El Salvador both recognized the Guaidó government. 3 White & Case alleges that the Maduro faction “seized and maintained unlawful control of” PDVSA, after which the Guaidó faction established an “ad hoc administrative board to manage PDVSA’s affairs.” Appellant’s Br. at 2, 7.

Neither side questioned the factual basis of the other’s authorization:

2The case was originally assigned to Judge Robert N. Chatigny. Following the default judgment, the case was reassigned to Judge Jeffrey A. Meyer. 3 The Guaidó government was apparently dissolved in early 2023. See, e.g., Kejal Vyas, Venezuela’s U.S.-Backed Opposition Removes Juan Guaidó as Its Leader, WALL ST. J. (Dec. 30, 2022). The parties have not indicated that these events have impacted the litigation, and “we ordinarily do not consider material not included in the record on appeal.” Keepers, Inc. v. City of Milford, 807 F.3d 24, 29 n.14 (2d Cir. 2015) (cleaned up).

5 • Jiménez claimed that Crespin, ALBA’s legal representative, hired him to defend ALBA. No party disputes that Crespin was ALBA’s legal representative or that, under Salvadoran law, ALBA’s legal representative was responsible for retaining counsel.

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Bluebook (online)
82 F.4th 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-alba-petroleos-de-el-salvador-sem-de-cv-ca2-2023.