Second Circuit Rejects Sovereign Immunity Claim, Upholds Discovery Against Argentina's Banks

摘要

In August 2012, the U.S. Court of Appeals for the Second Circuit affirmed a lower court's order directing extraterritorial asset discovery against two nonparty banks to aid in enforcing judgments stemming from Argentina's default on its external debt. In an opinion by Judge John Walker, the court rejected Argentina's argument that the discovery subpoenas violated Argentina's sovereign immunity, concluding that because the district court ordered only discovery, not the attachment of sovereign property, and because that discovery is directed at third-party banks, Argentina's sovereign immunity is not affected.