Supreme Court vacated judgment of court of appeals and remanded case for further proceedings consistent with its opinion that non-frivolous argument is not sufficient for expropriation exception to apply, which matter must be decided as close to outset as possible

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Date: January-March 2017
From: International Law Update(Vol. 23, Issue 1)
Publisher: American Bar Association
Document Type: Article
Length: 757 words
Lexile Measure: 1440L

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Since the mid-1970s a wholly owned Venezuela-incorporated subsidiary (Subsidiary) of an American company (Parent) supplied oil rigs to oil development entities that were part of the Venezuelan Government. In 2011 the American Parent company and its Venezuelan Subsidiary brought a lawsuit in federal court against those foreign government entities claiming that the Venezuelan Government had unlawfully expropriated the Subsidiary's oil rigs by nationalizing them and sought compensation. Venezuela moved to dismiss the case on the ground that its sovereign immunity deprived the District Court of jurisdiction.

A wholly owned Venezuelan subsidiary (Subsidiary) of an American company (Parent) has long supplied oil rigs to oil development entities that were part of the Venezuelan Government. The American Parent and its Venezuelan Subsidiary (plaintiffs) filed suit in federal court against those entities, claiming that Venezuela had unlawfully expropriated the Subsidiary's rigs by nationalizing them. Venezuela moved to dismiss the case on the ground that its sovereign immunity deprived the District Court of jurisdiction. The District Court agreed as to the Subsidiary, dismissing its claim on jurisdictional grounds. But it rejected the claim that the Parent had no rights in the Subsidiary's property....

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Gale Document Number: GALE|A549156119