Sendibel Trading, S.A. v. Petróleos de Venezuela S.A.

Summary

The Appellate Division, First Department unanimously affirmed an order deeming service of process sufficient and complete in an action against Petróleos de Venezuela S.A. and its guarantor. The court held that the note agreement established a special arrangement for service through Corporation Service Company and that plaintiff complied with that arrangement, notwithstanding CSC's rejection of service. The court also rejected defendants' due process and other service-related arguments.

Holdings

1. The issuer waived its right to insist on service under the Foreign Sovereign Immunities Act by agreeing that it was not entitled to immunity from legal process and by agreeing not to assert that it was immune from legal process.
2. Even assuming the FSIA governed service, plaintiff satisfied 28 U.S.C. § 1608(b) by delivering the summons and complaint to CSC pursuant to the note agreement's special arrangement for service.
3. Service on the foreign corporation's designated agent was sufficient, and the guarantor's due-process objection failed because defendants received timely actual notice.

Questions Presented

1. Whether the issuer waived any right to service under the Foreign Sovereign Immunities Act through the note agreement.
2. Whether service on CSC constituted valid service under the special-arrangement provision of 28 U.S.C. § 1608(b), despite CSC's rejection of the documents.
3. Whether service on the guarantor's designated agent satisfied New York service-of-process requirements and due process.

Disposition

affirmed