« The Incredible, Magical, Shrinking Injunction? | Main | A Stay Would Not Affect the Plaintiffs... Except by Eviscerating the Injunction »

Whose Fault Is the Argentina Debacle?

posted by Adam Levitin

I name names and point fingers in the Wall Street Journal.  NML gets some blame for overplaying its hand, but the fault primarily lies with the federal courts for letting the case go forward. I understand the courts being angered by an unrepentant debtor thumbing its nose at them, but the federal courts should know better than to get into a pissing match with a foreign sovereign. Federal judges are possessed of awesome powers, but not that awesome. It's not at all clear to me how Judge Griesa's going to get this case out of the hole he dug, and the recent reporting on the case indicates that he doesn't have any idea either. "We're in the soup."  Indeed. 

Comments

In my view, the key fault lies with the 2nd Circuit in going along with the rationalization that Griesa's injunction's naming of all sorts of foreign parties outside of the court's personal jurisdiction is just fine because the injunction only legally applies to Argentina while merely giving “notice” to the additional foreign parties. NML Capital, Ltd. v. Republic of Arg., 727 F.3d 230, 243 (2d Cir. 2013).

That is, per the acrobatic reasoning of the 2nd Circuit, the naming of the additional parties in the injunction was in effect surplusage. Id.

It is one thing for a district judge to be overwhelmed and in over his head, but for a 2nd Circuit panel to bend over backward to affirm in this contorted manner is the height of sloppiness and laziness.

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF