Palladian Partners LP & Ors v Republic of Argentina & Anor [2024] EWCA Civ 139 (22 February 2024)

Palladian Partners LP & Ors v Republic of Argentina & Anor [2024] EWCA Civ 139 (22 February 2024)

There is a compelling reason to impose a condition on permission to appeal due to the Republic's history of defaults, enforcement difficulties, lack of clarity on payment plans, and high risk of non-payment if the appeal fails. The condition does not stifle the appeal and is proportionate.

Citation
[2024] EWCA Civ 139
Parties
Respondent/claimant: Palladian Partners L. P.; Respondent/claimant: HBK Master Fund L. P.; Respondent/claimant: Hirsh Group LLC; Respondent/claimant: Virtual Emerald International Limited; Appellant/first Defendant: The Republic of Argentina; Second Defendant: The Bank of New York Mellon (as Trustee)
Jurisdiction
England and Wales
Judgment Date
22 February 2024
Procedural Posture
Appeal / Permission to Appeal With Condition Imposed
Outcome
Condition on permission to appeal upheld; date for compliance extended.
Legal Topics
GDP Linked Securities, Adjustment Provision, Enforcement of Foreign Judgments, Conditions on Permission to Appeal, Sovereign Debt Default
Commercial Law Securities Law Civil Procedure GDP Linked Securities Adjustment Provision Enforcement of Foreign Judgments Conditions on Permission to Appeal Sovereign Debt Default

Case Brief

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Parties

Palladian Partners L. P.

Respondent/claimant

HBK Master Fund L. P.

Respondent/claimant

Hirsh Group LLC

Respondent/claimant

Virtual Emerald International Limited

Respondent/claimant

The Republic of Argentina

Appellant/first Defendant

The Bank of New York Mellon (as Trustee)

Second Defendant

Procedural Posture

Appeal / Permission to Appeal With Condition Imposed

Legal Issues

  1. 1 Whether a compelling reason exists to impose a condition on permission to appeal
  2. 2 Whether the Republic's conduct and financial situation justify imposition of a condition
  3. 3 Whether the imposition of a condition would cause irremediable harm or stifle the appeal

Ratio Decidendi

There is a compelling reason to impose a condition on permission to appeal due to the Republic's history of defaults, enforcement difficulties, lack of clarity on payment plans, and high risk of non-payment if the appeal fails. The condition does not stifle the appeal and is proportionate.

Court Disposition

Condition on permission to appeal upheld; date for compliance extended.

Orders

  • Republic of Argentina must pay EUR309,876,449.80 to the Trustee by 5 April 2024 to be held in escrow pending appeal.
  • Parties invited to agree terms for escrow and consequential matters.