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JS 44C/SDNY

REV. 1/2008

JUDGE CROTTY

CIVIL COVER SHEET

ORIGINAL

CIV 8160

The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for use of the Clerk of Court for the purpose of initiating the civil docket sheet.

NOV 1 2011

CAUSE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE)

(DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY)

ICSID Award Enforcement: 22 U.S.C. §1650(a) and 28 U.S.C. §1605(a)(6)

Has this or a similar case been previously filed in SDNY at any time? No? ☑ Yes? ☐ Judge Previously Assigned

If yes, was this case Vol. ☐ Invol. ☐ Dismissed. No ☐ Yes ☐ If yes, give date & Case No.

(PLACE AN [x] IN ONE BOX ONLY)

NATURE OF SUIT

Check YES only if demanded in complaint

JURY DEMAND: ☐ YES ☐ NO

NOTE: Please submit at the time of filing an explanation of why cases are deemed related.

BLANK ROME LLP
Attorneys for Plaintiffs
Jeremy J.O. Harwood
405 Lexington Avenue
The Chrysler Building
New York, NY 10174
(212) 885-5149

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

ORIGINAL

JUDGE CROTTY

11 CIV 8160

2011 NOV 10 PM 4: 38

S.D. OF N.Y.

Plaintiffs IOANNIS KARDASSOPOULOS and RON FUCHS (collectively “Plaintiffs”), by their attorneys Blank Rome LLP, complaining of the above-named Defendant THE REPUBLIC OF GEORGIA (“Georgia” or Defendant”), allege upon information and belief as follows:

1. This is an action for the recognition and enforcement of an arbitral award issued by the International Centre for Settlement of Investment Disputes (“ICSID”), 1818H Street N.W., Washington, D.C. 20433 on March 3, 2010 in favor of Plaintiffs and against Defendant (the “Award”).

PARTIES AND JURISDICTION

2. Plaintiff Ioannis Kardassopoulos (“Kardassopoulos”) is a citizen of Greece.

3. Plaintiff Ron Fuchs (“Fuchs”) is a citizen of Israel.

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4. Defendant is a foreign state.

5. This Court has subject matter jurisdiction over this action to recognize and enforce the Award pursuant to the “Convention on the Settlement of Investment Disputes Act of 1966”, 17 U.S.T. 1270, 575 U.N.T.S. 159 (“Convention”) and 22 U.S.C. § 1650a (a) and (b).

6. The Court has personal jurisdiction over Georgia pursuant to 28 U.S.C. § 1330(a).

7. Plaintiffs will serve Georgia with a copy of the summons and verified complaint, and such other required documents, pursuant to 28 U.S.C. § 1608.

THE UNDERLYING DISPUTE

8. After achieving independence from the Soviet Union in April, 1991, Georgia sought investments to develop a transit corridor to transport oil and gas from Azerbaijan to the Black Sea, known as the “Western Route.”

9. In furtherance of that goal, Georgia’s state-owned oil company, SakNavtobi, entered into a joint venture Agreement dated March 3, 1992 (“Joint Venture”) with Tramex International Inc., a company jointly owned by Plaintiffs. The Joint Venture provided for, among other things, “the sole and exclusive right of first refusal in the Republic of Georgia to participate or implement any other Oil and Gas related projects in the Republic of Georgia.” Joint Venture Agreement, ¶ 3.6. The Joint Venture further provided: “All property owned, leased or used by the Joint Venture is not subject to expropriation, confiscation or nationalization.” Id., ¶ 12.1

10. On February 20, 1996, Georgia cancelled “all rights (given earlier by the Georgian government to any of the parties)” and expropriated the entire Joint Venture.

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THE ARBITRATION PROCEEDINGS

11. After years of negotiating potential payments to Plaintiffs as a result of Georgia’s expropriation, Plaintiffs submitted separate requests for arbitration to the ICSID. On September 14, 2007 ICSID confirmed that both arbitration proceedings would run concurrently and be heard together.

12. ICSID issued the Award which awarded:

1. Kardassopoulos and Fuchs $15.1 million each;
2. Interest on the principal sums awarded from February 20, 1996 to February 28, 2010 in the amount of $30,024,736.83 each for a total sum payable to each $45,124,736.83;
3. Interest on the principal sums at the rate of LIBOR in effect at the date of issuance of the Award plus four percent (4%), compounded semi-annually from the date of issuance of the Award at the six-month term LIBOR rate for U.S. dollar deposits published by the Wall Street Journal, plus four percent (4%), and such interest rate reset semi-annually to the current six-month LIBOR rate in effect each January 1 and July 1 until such time as the Award is satisfied in full;
4. Costs of the ICSID arbitration in the total sum of $7,942,297.

13. Following the issuance of the Award, Georgia filed successive applications to annul and/or revise the Award and obtained a provisional stay in January, 2011, conditioned on Georgia posting an unconditional and irrevocable bank guarantee (“Guarantee”) in the amount of $50 million. On June 7, 2011, after Georgia wrote to confirm that it would not post the Guarantee, ICSID by decision dated June 7, 2011 terminated the stay.

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COUNT I

FOR RECOGNITION OF THE AWARD

14. Plaintiffs repeat paragraphs 1 through 13 as if set forth in full here.

15. The United States, where the Award was issued, Israel and Greece, the countries of which Plaintiffs are citizens, and Georgia are all signatories of the Convention.

16. 22 U.S.C. § 1650a governs “Arbitration awards under the Convention” and provides:

An award of an arbitral tribunal rendered to chapter IV of the [C]onvention shall create a right arising under a treaty of the United States. The pecuniary obligations imposed by such an award shall be enforced and shall be given the same full faith and credit as if the award were a final judgment of a court of general jurisdiction of one of the several States. The Federal Arbitration Act (9 U.S.C. 1 et seq.) shall not apply to enforcement of awards rendered pursuant to the [C]onvention.

17. Plaintiffs seek recognition and enforcement of the Award as a money judgment of this Court.

18. France, The Netherlands, and The United Kingdom are also signatories to the Convention, and have recognized the Award as a judgment pursuant to Article 54 thereof.

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PRAYER FOR RELIEF

WHEREFORE, Plaintiffs request the following relief: (1) An order recognizing the Award as a judgment of this Court in the amounts set forth therein; (2) costs incurred in this recognition and enforcement proceeding, including reasonable attorneys fees; (3) post-judgment interest; and (4) such other and further relief as the Court may deem just and proper.

Date: November 10, 2011
New York, New York

Respectfully submitted,

BLANK ROME LLP

By:

Signature

Attorney for Plaintiffs

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VERIFICATION

STATE OF NEW YORK )
: ss.:
COUNTY OF NEW YORK)

Jeremy J.O. Harwood, being duly sworn, deposes and says:

1. I am a member of the bar of this Honorable Court and of the firm of Blank Rome LLP, attorneys for Plaintiffs.

2. I have read the foregoing Verified Complaint and I believe the contents thereof are true.

3. The sources of my information and belief are documents provided to me and statements made to me by representatives of Plaintiffs.

4. The reason this Verification is made by deponent and not by Plaintiffs is that they are foreign citizens, neither of whom are within this jurisdiction.

Signature

Jeremy J.O. Harwood

Sworn to before me this
10th day of November, 2011

Signature

Notary Public

KARL V. REDA
Notary Public, State of New York
No. 30-4783126, Qual. in Nassau Cty.
Certificate Filed in New York County
Commission Expires Nov 30, 2013

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