In the Supreme Court of the State of Delaware Rodolfo

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In the Supreme Court of the State of Delaware Rodolfo EFiled: Jan 13 2020 02:48PM EST Filing ID 64609553 Case Number 399,2019 IN THE SUPREME COURT OF THE STATE OF DELAWARE RODOLFO ENRIQUE JIMÉNEZ, ) ASDRÚBAL CHAVEZ, IRIS ) MEDINA, MARCOS ROJAS, JOSÉ ) ALEJANDRO ROJAS, and ) FERNANDO DE QUINTAL, ) ) Plaintiffs/Counterclaim- ) No. 399, 2019 Defendants ) Below/Appellant, ) Court Below—Court of ) Chancery of the State of v. ) Delaware ) C.A. No. 2019-0490-KSJM LUISA PALACIOS, EDGAR ) RINCÓN, FERNANDO VERA, ELIO ) TORTOLERO, ANDRÉS PADILLA, ) ÁNGEL OLMETA, JAVIER ) TROCONIS, LUIS URDANETA, and ) RICK ESSER, ) Defendants/Counterclaim- ) Plaintiffs Below/Appellees. ) ) ) CORRECTED BRIEF OF THE BOLIVARIAN REPUBLIC OF VENEZUELA, AS AMICUS CURIAE, IN SUPPORT OF AFFIRMANCE FOR APPELLEES OF COUNSEL: A. Thompson Bayliss (#4379) ABRAMS & BAYLISS LLP José Ignacio Hernández G. 20 Montchanin Road, Suite 200 Special Attorney General of Venezuela Wilmington, Delaware 19807 2409 California St. NW (302) 778-1000 Washington, D.C. 20008 Counsel for the Bolivarian Republic of Venezuela {A&B-00614980} TABLE OF CONTENTS PAGE IDENTITY AND INTERESTS OF AMICUS CURIAE .......................................... 1 ARGUMENT ............................................................................................................. 2 A. Under the Political Question Doctrine, Interim President Guaidó and Venezuela’s Democratically-Elected National Assembly Are the Official Government of Venezuela for All Relevant Purposes ............................................................................................ 3 B. Under the Act of State Doctrine, Delaware Courts Cannot Review or Modify Actions Taken by the Official Government of Venezuela .................................................................................................... 6 C. Interim President Guaidó is Legally Empowered to Appoint PDVSA’s Ad Hoc Board ................................................................................. 8 D. The Rulings and Statements of the Constitutional Chamber of The Supreme Tribunal of Justice are Illegitimate and Do Not Bind This Court ............................................................................................. 13 CONCLUSION ........................................................................................................ 21 {A&B-00614980} TABLE OF AUTHORITIES Page(s) Cases Baker v. Carr, 369 U.S. 186 (1962) .............................................................................................. 5 Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398 (1964) .............................................................................................. 6 Dresser-Rand Company v. Petróleos de Venezuela, S.A, et al., 19-cv-2689 (S.D.N.Y. July 8, 2019) (Ex. 1) ........................................................ 6 Guaranty Tr. Co. of N.Y. v. U.S., 304 U.S. 126 (1938) .............................................................................................. 5 Konowaloff v. Metropolitan Museum of Art, 702 F.3d 140 (2d Cir. 2012) ................................................................................. 6 OI European Grp. B.V. v. Bolivarian Republic of Venezuela, 2019 WL 2185040 (D.D.C. May 21, 2019) .......................................................... 5 PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC, 372 F. Supp. 3d 1353 (S.D. Fla. 2019) ......................................................... 1, 4, 5 Red Tree Investments, LLC v. Petróleos de Venezuela, S.A, et al., 19-cv-2519 (S.D.N.Y. May 6, 2019) .................................................................... 6 Ricaud v. Am. Metal Co., 246 U.S. 304 (1918) .......................................................................................... 6, 7 U.S. v. Pink, 315 U.S. 203 (1942) .............................................................................................. 5 Underhill v. Hernandez, 168 U.S. 250 (1897) .............................................................................................. 5 W.S. Kirkpatrick & Co., Inc. v. Envt’l Tectonics Corp., Int’l, 493 U.S. 400 (1990) .............................................................................................. 6 {A&B-00614980} Other Authorities Acuerdo Sobre La Activación Del Procedimientode Remoción De Los Magistrados De La Sala Constitucional Del Tribunal Supremo De Justicia,Por Su Responsabilidad En La Rupturadel Orden Constitucional, Asamblea Nacional (Apr. 5, 2017), http://www.asambleanacional.gob.ve/actos/detalle/acuerdo-sobre- la-activacion-del-procedimientode-remocion-de-los-magistrados- de-la-sala-constitucional-del-tribunal-supremo-de-justiciapor-su- responsabilidad-en-la-rupturadel-orden-constitucional-120 .............................. 16 Constitutión de la Repúblic Bolivariana de Venezuela (The “Venezuelan Constitution”) .................................................................................. 9 Igor Hernández & Francisco Monaldi, Weathering Collapse: An Assessment of the Financial and Operational Situation of the Venezuelan Oil Industry, Growth Lab at Center for International Development at Harvard University 13 (November 2016), https://growthlab.cid.harvard.edu/files/growthlab/files/venezuela_o il_cidwp_327.pdf .................................................................................................. 1 President Donald J. Trump Supports the Venezuelan People’s Efforts to Restore Democracy in their Country, The White House (Jan. 29, 2019), https://www.whitehouse.gov/briefings-statements/president- donald-j-trump-supports-venezuelan-peoples-efforts-restore- democracy-country/ .............................................................................................. 3 Press Release, Representative of the Government of Venezuela to the United States, U.S. Department of State (Jan. 27, 2019), https://www.state.gov/secretary/remarks/2019/01/288609.htm ........................... 4 Resolution for the removal of the Judges of the Constitutional Chamber for their responsibility in the breakdown of the rule of law, Bolivarian Republic of Venezuela National Assembly (April 5, 2017, http://www.asambleanacional.gob.ve/actos/_acuerdo-sobre- la-activacion-del-procedimientode-remocion-de-los-magistrados- de-la-sala-constitucional-del-tribunal-supremo-de-justiciapor-su- responsabilidad-en-la-rupturadel-orden-constitucional) .................................... 19 {A&B-00614980} 2 Resolution on the Recent Events in Venezuela, CP/RES. 1078 (2108/17) (Apr. 3, 2017), https://www.oas.org/en/media_center/press_release.asp?sCodigo= E-022/17 .............................................................................................................. 20 Resolution on the Situation in Venezuela, AG/RES. 2929 (June 5, 2018) http://www.oas.org/en/media_center/press_release.asp?sCodigo=S -032/18 ................................................................................................................ 20 Revenue generated by Petróleos de Venezuela (PDVSA) from 2015 to 2018 (in billion U.S. Dollars), Statistica (2019), https://www.statista.com/statistics/803918/revenue-petroleos- venezuela/ ............................................................................................................. 1 Standing Up for Democracy and Rule of Law in Venezuela, U.S. Department of State, Official Blog (Apr. 11, 2019), https://blogs.state.gov/stories/2019/04/11/en/standing-democracy- and-rule-law-venezuela ......................................................................................... 4 Statute that Governs the Transition to Democracy to Reestablish the Full Force and Effect of the Constitution of the Bolivarian Republic of Venezuela (the “Democracy Transition Statute”) ............................. 2 Treasury Sanctions Eight Members of Venezuela’s Supreme Court of Justice, U.S. Department of the Treasury (May 18, 2017), https://www.treasury.gov/press-center/press- releases/Pages/sm0090.aspx ............................................................................... 17 Venezuela: AN aprueba anular designacion de magistrados, Prodavinci (Jul. 15, 2016), http://historico.prodavinci.com/2016/07/15/actualidad/venezuela- an-aprueba-anular-designacion-de-magistrados/ ................................................ 15 Venezuelan National Assembly, Final Report of the Special Commission of the National Assembly for the Study and Analysis of the Selection Process of Senior and Substitute Magistrates of the Supreme Tribunal (Mar. 3, 2016), http://www.asambleanacional.gob.ve/actos/_informe-final-de-la- comision-especial-para-el-estudio-y-analisis-del-proceso-de- seleccion-de-magistrados-principales-y-suplentes-del-tribunal- supremo-de-justicia ............................................................................................. 16 {A&B-00614980} 3 IDENTITY AND INTERESTS OF AMICUS CURIAE Amicus curiae, the Bolivarian Republic of Venezuela (“Venezuela”), is the recognized, legitimate government of the people of Venezuela. The country possesses the largest supply of proven oil reserves in the world. Opinion (“Op.”) at 7. Venezuela is the sole stockholder of Petróleos de Venezuela, S.A. (“PDVSA”), the Venezuelan state-owned oil and natural gas company. Over the past decade, PDVSA has generated hundreds of billions of dollars in revenue for Venezuela through its exploration, production, refining and exportation activities.1 PDV Holding, Inc. (“PDV Holding,” a subsidiary of PDVSA), CITGO Holding, Inc. (“CITGO Holding,” a subsidiary of PDV Holding), and CITGO Petroleum Corporation (“CITGO Petroleum,” a subsidiary
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