AWB Wins Appeal Dismissing Suit over Iraq Oil‑for‑Food Programme
September 24, 2014
On September 18, 2014, the Second Circuit Court of Appeals affirmed the trial court’s decision dismissing an action against AWB Limited, the corporate successor to the Australian Wheat Board, which is now known as Agrium Asia Pacific Limited. The trial court’s decision is one of five dismissals -- and one of seven favorable court decisions -- Cravath obtained for AWB in actions related to the United Nations Oil-for-Food Programme since 2008.
The Republic of Iraq, in its sovereign capacity and as parens patriae on behalf of the people of Iraq, brought this action against 93 defendants who allegedly participated in a conspiracy to corrupt the Oil-for-Food Programme by diverting billions of dollars in cash, goods and services from humanitarian purposes to enrich defendants and the Saddam Hussein regime. Iraq alleged violations of the Racketeer Influenced and Corrupt Organization Act (“RICO”) and Foreign Corrupt Practices Act (“FCPA”) as well as various state law claims including fraud, breach of fiduciary duty, breach of contract and unjust enrichment. The U.S. District Court for the Southern District of New York dismissed the suit on February 6, 2013. For the prior related news item, click here.
Consistent with the district court decision, the majority of the appellate panel concluded that (1) the RICO claims were properly dismissed on the basis of the in pari delicto doctrine because the alleged wrongdoing by the Hussein regime must be attributed to the Iraqi state; (2) Iraq does not have a right of action under the FCPA; and (3) because the federal claims were properly dismissed, the district court properly declined to exercise supplemental jurisdiction over the state law claims.
The AWB team includes partners Robert H. Baron and Timothy G. Cameron and associate Alexander J. Scolnik. The case is Republic of Iraq v. ABB AG, et al., No. 13-0618, 2014 WL 4637201 (2d Cir. Sept. 18, 2014).
Please click here, here and here to view the news items regarding the dismissals of the other actions against AWB relating to the Oil-for-Food Programme.
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March 13, 2014
AWB Wins Dismissal of Fifth Suit Over Iraq Oil‑for‑Food Programme
On February 12, 2014, the U.S. District Court for the Southern District of Texas granted Cravath’s motion to dismiss with prejudice an action against AWB Limited, the corporate successor to the Australian Wheat Board, which is now known as Agrium Asia Pacific Limited. This is the fifth time Cravath has successfully represented AWB in a suit concerning the United Nations Oil-for-Food Programme (the “Programme”). This suit involves claims by a number of U.S. citizens who were allegedly injured in terrorist attacks. Plaintiffs assert that those attacks were funded by Saddam Hussein using illegal kickbacks that he received from participants in the Programme. Although AWB was not named as a defendant in the plaintiffs’ lawsuit, the individuals and entities that were named as defendants brought a third-party complaint against AWB and 61 other entities that also participated in the Programme. The third-party complaint asserts a claim for contribution against AWB and the other third-party defendants in the event the defendants in the underlying action are found liable to plaintiffs for violating the Antiterrorism Act (“ATA”).
