New York is a key venue for the enforcement of judgments and arbitral awards, and two recent decisions concerning post-judgment discovery demonstrate that while courts will apply their execution and garnishment authority with great care, they will permit judgment creditors latitude to take broad discovery in order to locate assets and enforce duly-rendered judgments in both the sovereign and non-sovereign contexts.
Sanctions Issued Against Argentina for Failure to Comply with Post-Judgment Discovery -
On August 13, 2015, in NML Capital, Ltd. v. Republic of Argentina, the U.S. District Court for the Southern District of New York (SDNY) imposed sanctions against the Republic of Argentina for its failure to comply with a discovery order concerning Argentina’s assets. The NML Capital decision is the most recent decision in a decades-long dispute concerning Argentina’s default on its sovereign debt instruments in 2001, which has led to the entry of multiple judgments against Argentina, all of which Argentina has refused to satisfy. The dispute has generated a series of decisions by the Second Circuit.
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