Joe Neuhaus Named Litigator of the Week by The American Lawyer

September 3, 2015

On September 3, The American Lawyer named Mr. Neuhaus “Litigator of the Week” in recognition of his victory in the Second Circuit on behalf of client Banco Central de la Republica Argentina (BCRA).  Investment funds EM Ltd. and NML Capital Ltd sought a declaratory judgement holding that the Argentinian government so dominated and controlled the central bank as to make the bank an “alter ego” of the government and responsible for covering $2.4 billion in defaulted Argentinian bond debt. After more than nine years of litigation, the U.S. Court of Appeals for the Second Circuit sided with S&C's argument that plaintiffs had failed to adequately allege that BCRA is an alter ego of the government and that BCRA had its own immunity from suit under the Foreign Sovereignty Immunity Act. The Second Circuit observed that weakening the immunity from suit or attachment traditionally enjoyed by foreign instrumentalities, as plaintiffs urged, “could lead foreign central banks, in particular, to 'withdraw their reserves from the United States and place them with other countries,'” which in turn could have “an immediate and adverse impact on the U.S. economy and the global financial system.'”