Second Circuit Victory for Client Norex Petroleum on Major Procedural Issue
What the Case Involved:
Firm Client Norex Petroloeum Ltd. filed suit in US District Court for the Southern District of New York seeking over $1.5 billion in damages from defendants Access Industries, Inc., Renova, Inc., the Alfa-Group, and the Tyumen Oil Company, relating to the illegal seizure of control of a Russian Oil company, Yugraneft , under RICO. The trial court ruled on procedural grounds that the matter should be tried in Russia and not the United States and thus dismissed the claims on the basis of forum non conveniens. Marks and Sokolov filed an appeal to the United States Court of Appeals for the Second Circuit that the matter be heard in the United States noting that its client could not prevail in the Russian courts due to the "defendants’ manipulation of the court system."
Result:
In a ground-breaking reversal, the Second Circuit agreed stating that “because the defendants failed to carry their burden to demonstrate that Russia affords plaintiff a presently available adequate alternative forum, the motion to dismiss on forum non conveniens grounds should have been denied.” In addition, the Appeals Court held that the district court failed to give Norex’s choice of forum proper deference, stating that the “totality of the factors strongly suggests that its choice [of a New York forum] warranted substantial deference.” The matter has now been remanded to the trial court for further proceedings.
