Title : Supreme Court sides with Venezuela over American oil rigs dispute
link : Supreme Court sides with Venezuela over American oil rigs dispute
Supreme Court sides with Venezuela over American oil rigs dispute
RT | May 1, 2017 |
A unanimous Supreme Court decision on Monday gave the government of Venezuela another chance to fend off the lawsuit alleging that Caracas illegally seized 11 oil drilling rigs from the Oklahoma-based company in 2010, according to AP.
The justices ruled 8-0 that the lower courts set the bar too low in allowing the lawsuit, brought by Helmerich & Payne International Drilling Company, to move forward.
U.S. Supreme Court sides with Venezuela over oil rigs claim https://t.co/mZtStDwA2o— Reuters Top News (@Reuters) May 1, 2017
“A sovereign’s taking or regulating to its own nationals’ property within its own territory is often just the kind of foreign sovereign’s public act that the restrictive theory of sovereign immunity ordinary leave immune from suit,”wrote Justice Breyer.
He argued if cases against foreign governments are allowed to proceed too easily in American courts, it could “create friction with other nations and reciprocal actions against this (US) country.”
US Supreme Court threw out lower court's ruling that allows U.S. oil drilling firm to sue Venezuela over seizure of 11 drilling rigs in 2010— Day Trading Academy (@DTradingAcademy) May 1, 2017
At issue, was whether Venezuela violated international law when it expropriated drilling equipment from the Venezuelan subsidiary of the US-based corporation, Helmerich & Payne in 2010.
Venezuela had argued that the seizure did not violate international law because the rigs were owned by a Venezuelan subsidiary of the US company.
Violent scenes erupt on streets during anti-Maduro 'Mother of All Marches' protest in #Venezuela (VIDEOS, PHOTOS) https://t.co/HqHhu17F6Xhttp://pic.twitter.com/qmmJNNHfHo— RT (@RT_com) April 21, 2017
From 1975 to 2010, PDVSA contracted with Helmerich & Payne -Venezuela (H&P-V) for use of its specialized deep water oil-drilling equipment. At the beginning of 2007, PDVSA fell behind in its payments under ten different contracts with H&P-V in excess of $100 million US dollars.
‘Question is, where’s the floor?’ Venezuela’s financial reserve a third of 2 years ago https://t.co/KKLcFKcutM— RT (@RT_com) March 2, 2017
In an effort to compensate H&P-V for the appropriated equipment, PDVSA filed two eminent domain actions in Venezuelan courts; both cases have not moved forward in years.
U.S. Supreme Court sides with Venezuela over oil rigs claim https://t.co/mZtStDwA2o— Reuters Top News (@Reuters) May 1, 2017
Venezuela and PDVSA countered that they could not be sued in US courts under the Foreign Sovereign Immunities Act (FSIA) and sought a motion to dismiss on all counts.
H&P argued that two separate exceptions under the FSIA – the expropriation exception and the commercial activity exception – gave the district court jurisdiction.
#GeneralMotors accuses #Venezuela of illegally seizing its car plant https://t.co/eDv67oSLshhttp://pic.twitter.com/JAcJZCc5nz— RT (@RT_com) April 20, 2017
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