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Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 1 of 57

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 2 of 57

Ab Initio

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 3 of 57

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 4 of 57

Alfred Dunhill of London, Inc. v. Republic of Cuba

Allied Bank International v. Banco Credito Agricola de Cartago

Animal Sci. Prods., Inc. v. Hebei Welcome Pharm. Co.

Argo Fund Ltd.v. Bd. of Dirs. of Telecom Arg., S.A. (In re Bd. of Dirs. of Telecom Arg., S.A.)

Banco de Espana v. Fed. Reserve Bank of New York

Banco Nacional de Cuba v. Sabbatino

Estate of Leventhal ex rel. Bernstein v. Wells Fargo Bank, N.A.

Braka v. Bancomer, S.N.C.

Briarpatch Ltd., L.P. v. Phoenix. Pictures, Inc.

Carmine v. Murphy

City of Zanesville, Ohio v. Mohawk Data Scis. Corp.

Cohen v. Krantz

Cornea v. U.S. Attorney Gen.

Defendants’ Answers and Counterclaims

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 5 of 57

DoubleLine Capital LP v. Odebrecht Fin., Ltd.

Draper v. Georgia Prop aff’d

Fabrizio & Martin, Inc. v. Bd. of Educ

Faison v. Lewis

Fed. Treasury Enter. Sojuzplodoimport v. Spirits Int’l B.V.

First Nat. City Bank v. Banco Nacional de Cuba

Hall & Co. v. Continental Cas. Co. aff’d

Hausler v. JP Morgan Chase Bank, N.A.

Highland Capital Mgmt. LP v. Schneider

Impact Fluid Solutions et al v. Bariven S.A. et al

Jimenez v. Palacios passim

Kashef v. BNP Paribas S.A.

Konowaloff v. Metro. Museum of Art

Levison v. Illinois Surety Co.

M+J Savitt, Inc. v. Savitt

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 6 of 57

Michael R. Gianatasio, PE, P.C. v. City of New York aff’d sub nom.

NML Capital, Ltd. v. Republic of Arg.

Oetjen v. Central Leather Co.

PDVSA U.S. Litig. Tr. v. Pan Americas LLC

PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC passim

PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC

In re Republic Airways Holdings Inc.

Republic of Benin v. Mezei

Republic of Panama v. Air Panama Int’l, S.A.

Roberts v. Criss

Robertshaw v. Pudles

Saratoga Cty Chamber of Commerce v. Pataki

Sardanis v. Sumitomo Corp.

Stone v. Freeman

Strauss Linotyping Co. v. Schwalbe

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 7 of 57

Tasini v. AOL, Inc. aff’d

Themis Capital, LLC v. Democratic Republic of Congo

U.S. v. Maikel Jose Moreno Perez

Underhill v. Hernandez

United States v. Belmont

United States v. Pink

W.S. Kirkpatrick & Co. v. Env’l Tectonics Corp

Worthington v. JetSmarter, Inc.

In re Zarro

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 8 of 57

The effects of constitutional sentences in in

The Principle of Separation of Powers and Authoritarian Government in Venezuelain

Statute to Govern a Transition to Democracy to Reestablish the Validity of the Constitution of the

Venezuela’s PdVSA to Offer to Swap $7 Billion in Debt

Debt Issue Under New Decree Will be Void

Default. Few People Seem to Understand Why

U.S. recognizes Venezuela opposition leader Juan Guaidó as president; backs Maduro

Freddy Guevara: Government has proven negligent and destructive of the economyEl Cooperante

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 9 of 57

Letter Dated June 9, 2020 to the Honorable Katherine Polk Failla, United States District Court Judge, from , Ambassador of the Bolivarian Republic of Venezuela to the United States

PDVSA Announces Expiration and Final Results for its Offers to Exchange its Outstanding 5.250% Senior Notes due 2017 and 8.50% Senior Notes due 2017 for New 8.50% Senior Secured Notes due 2020

Defending Democracy in Venezuela

Third Quarter Assets Under Management Statement

U.S. Sanctions on Venezuelan Individuals and Entities

passim passim passim

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 10 of 57

Venezuela Refuses to Default. Few People Seem to Understand Why See also Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 11 of 57

national public interest

without the approval of the National Assembly

ab initio

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 12 of 57

ab initioas they never came into valid legal existence

Worthington v. JetSmarter, Inc.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 13 of 57

conclusive

Plaintiffs’

See PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 14 of 57

ad-hoc

Id Id Id Statute to Govern a Transition to Democracy to Reestablish the Validity of the Constitution of the Republic of Venezuela Jimenez v. Palacios SeeJimenez Impact Fluid Solutions et al v. Bariven S.A. et al

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 15 of 57

See Defendants’ Answers and Counterclaims Id Id See idComplaint for Declaratory and Injunctive Relief SeeThird Quarter Assets Under Management Statementavailable at SeeForm ADV Annual Report 2019available at Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 16 of 57

Id PDVSA Announces Expiration and Final Results for its Offers to Exchange its Outstanding 5.250% Senior Notes due 2017 and 8.50% Senior Notes due 2017 for New 8.50% Senior Secured Notes due 2020 available at Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 17 of 57

more

Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 18 of 57

[n]o contract in the . . . national public interest shall be entered into with . . . companies not domiciled in Venezuela . . . without

Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 19 of 57 the approval of the National Assembly.

inter alia

inter alia

inter alia

inter alia

Resolution on the Respect of the Inherent and Nontransferable Powers of the National Assembly on Contracts of Public Interest Signed by and between the National Executive and Foreign States or Official Entities or with Companies Not Domiciled in Venezuela Resolutions on the Current Financial Situation of Petróleos de Venezuela S.A.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 20 of 57

To reject categorically that, within the swap transaction, 50.1% of the shares comprising the capital stock of Holding, Inc. are offered as a guarantee with priority, or that a guarantee is constituted over any other property of the Nation . . . [and]

[h]ere for the first time collateral is being put up, in the issuance of a PDVSA corporate bond, 50.1% of the shares of Citgo, that is questioned by the

Venezuelan legal order

Regular Session of Tuesday, September 27, 2016. Discussions on the effects of PDVSA Bond Redemption Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 21 of 57

inter alia

it was concluded that the 2020 Bond indenture is a national public contract that should have been authorized by the National Assembly, in accordance with Article 150 of the Constitution

inter alia

the 2020 Bond indenture violated Article 150 of the Constitution of the Bolivarian Republic of Venezuela, since it concerned a national interest public contract, executed with foreign companies, which was not authorized by the National Assembly

Resolutions that Reiterates the Invalidity of PDVSA’s 2020 Bonds See

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 22 of 57

Venezuela’s constitution requires the National Assembly to approve any new indebtedness of the republic

El Nacional the decree purportedly allowing PDVSA to use CITGO as collateral was unconstitutional any contract [PDVSA] signs is invalid

legal risksall [such] international transactions . . . would require legislative approval or otherwise risk illegality

Freddy Venezuela’s PdVSA to Offer to Swap $7 Billion in Debt available at Debt Issue Under New Decree Will be Void Nomura Nomura UBS

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 23 of 57 Guevara: Government has proven negligent and destructive of the economy will not recognize any public contract that is not considered or authorized by the Legislative Branch in accordance with the Constitution

legal risks associated with the new bond concerns about the legality of the issuance

the National Assembly has questioned the legitimacy of offering a 50% participation of CITGO as collateralthe deal could be ‘illegal’ and reneged upon by a future opposition government

Freddy Guevara: Government has proven negligent and destructive of the economyEl Cooperante Not only do we not recognize these transactions, we will also investigate everyone involved in the sale because it would be implying an embezzlement of the NationFreddy Guevara on PDVSA: We will not recognize any bond swap that has not been authorized by the NA Torino Capital LLC J.P. Morgan Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 24 of 57

The Principle of Separation of Powers and Authoritarian Government in Venezuelain Id Election and Political Power. Challenges for the Oppositionin La división de poderes debilita al estado. La presidenta del TSJ [Luisa Estela Morales] afirma que la Constitución hay que reformarla The division of power weakens state,President of TSJ [Luisa Estela Morales] states that the Constitution must be reformed

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 25 of 57

Transition from Democracy to Tyranny through the Fraudulent Use of Democratic Institutions: The Case of Venezuela available at Id Luis Almagro to Mr. Juan Jose Arcuri available at Statute to Govern a Transition to Democracy to Reestablish the Validity of the Constitution of the Republic of Venezuela See Treasury Sanctions Eight Members of Venezuela’s Supreme Court of Justice available at

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 26 of 57

Id U.S. Sanctions on Venezuelan Individuals and Entities available atU.S. v. Maikel Jose Moreno Perez U.S. recognizes Venezuela opposition leader Juan Guaidó as president; Russia backs Maduro available at See See

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 27 of 57

Fed. Treasury Enter. Sojuzplodoimport v. Spirits Int’l

B.V.First Nat. City Bank v. Banco Nacional de

Cuba,

Banco Nacional de Cuba v. Sabbatino

Konowaloff v.

Metro. Museum of ArtRicaud v. American Metal

Continuing U.S. Diplomatic Presence in Venezuela available at Assumption of Legislative Powers in Venezuela available at

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 28 of 57 Co.see alsoW.S. Kirkpatrick & Co. v. Env’l Tectonics Corp

SeeJimenez

Impact Fluid Solutions et al v.

Bariven S.A. et al

retroactive in effect and validates all the actions and conduct of the government so recognized from the commencement of its existencei.e.

Konowaloff

Oetjen v. Central Leather Co.,

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 29 of 57 see also United States v. Belmont

United States v. Pink,Underhill v. Hernandez

before

ab initio

Petróleos de Venezuela, S.A. et al. v. MUFG Union Bank, N.A., et. al. See, e.g., Underhill or resolutionKashef v. BNP Paribas S.A. Alfred Dunhill of London, Inc. v. Republic of Cuba See, e.g, Alfred Dunhill Banco de Espana v. Fed. Reserve Bank of New York

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 30 of 57

PDVSA U.S. Litigation Trust

IdZivotofsky ex rel. Zivotofsky v. Kerry

PDVSA U.S. Litigation. Trust

IdKonowaloff

PDVSA U.S. Litig. Tr. Resolution to Denounce the Unconstitutionality of the Constitution of the Trust ‘PDVSA US Litigation Trust’, by Sociedad Anonima Petroleos de Venezuela,

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 31 of 57

Allied Bank International v. Banco Credito Agricola de

Cartago

not

Braka v. Bancomer, S.N.C.

PDVSA U.S. Litig. Tr. v. Lukoil Pan Americas LLC wereAllied Bank i.e. SeeAllied Banksee also Hausler v. JP Morgan Chase Bank, N.A. e.g.See Republic of Panama v. Air Panama Int’l, S.A. Jimenez

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 32 of 57

Oetjen

PDVSA U.S. Litig. Tr.

AB INITIO

ab initio

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 33 of 57

Worthington Schnabel v.

Trilegiant Corp

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 34 of 57

[i]f one of the following provisions of [this Act] specifies the applicable law, that provision governs and a contrary agreement is effective only to the extent permitted by the law [including the conflict of laws rules] so specified

[t]he local law of the issuer’s jurisdiction . . . governs . . . the validity of a security

other than validitycannot specify

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 35 of 57

See Seeid

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 36 of 57

SeeThemis Capital, LLC v. Democratic Republic of Congo

Republic of Benin v. Mezei

Anglo– Iberia Under Writing Mgmt. Co. v. PT Jamsostek,

aff’d in relevant part,

ab initio

See Hall & Co. v. Continental Cas. Co. aff’d

Levison v. Illinois Surety Co.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 37 of 57

SeeIn re Republic Airways Holdings Inc.

see also

Argo Fund Ltd.v. Bd. of Dirs. of Telecom Arg.,

S.A. (In re Bd. of Dirs. of Telecom Arg., S.A.)

Hilton v. Guyot

Animal Sci. Prods., Inc. v. Hebei Welcome Pharm. Co.

Pink,

supra

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 38 of 57

Pink

Animal Sciencessee also Spirits Int’l

Cornea v. U.S. Attorney Gen.

ab initio

[n]o contract in the municipal, state or national public interest shall be entered into . . . with companies not domiciled in Venezuela, or transferred to any of the same, without the approval of the

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 39 of 57 National Assembly

[t]o authorize contracts of municipal, state and national

public interest with States or official foreign entities or with companies not domiciled in

Venezuela

prior

centralized decentralized Id. Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 40 of 57

before

ab initio

Id Regular Session of Tuesday, September 27, 2016. Discussions on the effects of PDVSA Bond Redemption PDVSA Litigation Trust conclusiveSee PDVSA U.S. Litig. Tr.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 41 of 57 are a constitutive element and necessary for the ‘consent;’ consequently, the omission of the authorization does not vitiate the consent, but prevents it, impeding its legitimate manifestation; and being that consent is an essential element of the existence of the act, once it has been omitted, also the act, legally speaking, is inexistent

ab initio

PDVSA Litigation Trust

essence

Report of the Office of the Attorney General to the National Congress 1959 Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 42 of 57

First

Second

Id Id Id Jimenez

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 43 of 57

JimenezImpact Fluid Sols.

Jimenez

see generallyImpact Fluid Solutions

Brigitte Acosta Isasis

Third

Andrés Velásquez

dicta

only

Andrés Velásquez See supra

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 44 of 57

Andrés Velásquez

Andrés Velásquez

Andrés Velásquez

a state corporation [EDELCA] entered into an agreement that the

Court characterized as one of national interest

Resolution rejecting the increase to forty percent in the equity stake of the Russian state-owned company , partner of Petróleos de Venezuela S.A., in the mixed-ownership company Petromonagas, without approval of the modifications of the conditions governing the aforementioned resolution by the National Assembly pursuant to the constitutional and legal provisions governing the matter Id Id Id See, e.g.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 45 of 57

Diques y Astilleros de Nacionales S.A. (DIANCA)Corporación Venezolana de Guayana (CVG)

Compañía Anónima Venezolana de Televisión (VTV)

Attorney General of the Republic II

Andrés Velásquez

Andrés

Velásquez

according toProfessor Brewer’s own prior105 and

Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 46 of 57 subsequent106 writings on the concept of binding interpretationi.e.

Andres Valezqueznot

EDELCA Attorney General of the Republic II

Diques y Astilleros de Nacionales S.A. (DIANCACorporación Venezolana de Guayana (CVG)Compañía Anónima Venezolana de Televisión (VTV)

The effects of constitutional sentences in Venezuelain La Mutación de la Noción de Contratos de Interés Público Nacional Hecha Por la Sala Constitucional, para Cercenarle a la Asamblea Nacional sus Poderes de Control Político en Relación con la Actividad Contractual de la Administración Pública y sus Consecuenciasin See generally La Mutación de la Noción de Contratos de Interés Público Nacional Hecha Por la Sala Constitucional, para Cercenarle a la Asamblea Nacional sus Poderes de Control Político en Relación con la Actividad Contractual de la Administración Pública y sus Consecuenciasin Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 47 of 57

PDVSA Litigation Trust

no other Venezuelan public law scholar holds the opinion expressed by in this caseIdContracts of National Interest in Id See PDVSA U.S. Litig. Tr. Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 48 of 57

SeeSardanis v. Sumitomo

Corp.see also Draper v. Georgia Prop

aff’d

Roberts v. Crisssee alsoStone v.

Freeman

Strauss Linotyping Co. v. Schwalbe

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 49 of 57

See, e.g., Highland Capital Mgmt. LP v. Schneider,

See supra

In re Zarro

SeeCity of Zanesville, Ohio v. Mohawk Data Scis. Corp. ,

DoubleLine Capital LP v. Odebrecht Fin., Ltd.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 50 of 57

See Cohen v. Krantz

NML Capital, Ltd. v. Republic of Arg.

Faison v.

Lewisquoting Riverside Syndicate, Inc. v. Munroe

Saratoga Cty

Chamber of Commerce v. Pataki

UnderhillOetjen,

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 51 of 57

See, e.g., Carmine v. Murphy

Estate of Leventhal ex rel. Bernstein v. Wells Fargo

Bank, N.A.

quantum meruit

See Fabrizio & Martin, Inc. v. Bd. of Educ

quantum meruitMichael R. Gianatasio, PE,

P.C. v. City of New Yorkaff’d sub nom.

quantum meruit

See Briarpatch Ltd., L.P. v. Phoenix. Pictures, Inc. supra

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 52 of 57

more debt

See

M+J Savitt, Inc. v. Savitt

See

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 53 of 57 SeeTasini v. AOL, Inc.

aff’d

Dragon Inv. Co. II LLC v. Shanahan

see also See see also Jefferies in pari delicto Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 54 of 57

remainder of page left intentionally blank

Id Id

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 55 of 57

/s/ Kurt W. Hansson

Attorneys for Plaintiffs and Counterclaim Defendants Petróleos de Venezuela, S.A. and PDVSA Petróleo, S.A.

/s/ Jeffrey B. Korn

Attorneys for Plaintiff and Counterclaim Defendant PDV Holding, Inc.

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 56 of 57

ab initio ab initio In pari delicto

Case 1:19-cv-10023-KPF Document 117 Filed 06/15/20 Page 57 of 57 Quantum meruit ab initio In pari delicto