Petersen v. Argentina: Second Circuit Reversal Highlights Challenges In Sovereign Suits

First Tuesday Update is our monthly take on current issues in commercial disputes, international arbitration, and judgment enforcement. In this update, we look at appellate developments in the ongoing efforts to obtain compensation for the 2012 renationalization of Argentina's state-owned oil company. We also provide a brief update on Supreme Court oral argument in two arbitration-related cases.

Petersen Energia Invesora

In a previous update, we discussed efforts to collect on the $16 billion judgment entered in September 2023 by Judge Preska of the Southern District of New York in Petersen Energia Invesora S.A.U. et al. v. Argentine Republic et al., but those efforts are now likely moot following a Second Circuit decision entered on March 27, reversing the trial court's 2023 entry of judgment against Argentina. Although this case may be limited to the particular facts, it demonstrates the difficulty of pursuing sovereigns and the deference often given to sovereigns, especially by