Adrogué Chico S.A. v. Fleetboston Financial Corp.
Docket: No. 10-3474-cv
Court: Court of Appeals for the Second Circuit; June 23, 2011; Federal Appellate Court
Adrogué Chico, a defunct Argentine real estate development company, appeals the dismissal of its complaint against FleetBoston Financial Corporation (the Bank) and the denial of its motion to vacate the judgment under Federal Rule of Civil Procedure 60(b). The district court ruled that Adrogué Chico was barred from pursuing its claim due to international comity and judicial estoppel, stemming from its failure to disclose the claim during its 2001 bankruptcy proceedings in Argentina. The court granted summary judgment in favor of the Bank, and Adrogué Chico subsequently sought relief from this judgment, which was denied. The appeal is reviewed de novo for summary judgment and for abuse of discretion regarding the Rule 60(b) motion. Adrogué Chico contended that the district court erred in its summary judgment ruling and abused its discretion in denying the Rule 60(b) motion. Judicial estoppel aims to maintain the integrity of the courts. During its reorganization, Adrogué Chico was only required to repay 40% of its debts, amounting to approximately $2.7 million, while it was relieved of about $6.7 million in pre-petition debt after disclosing its assets. However, it failed to disclose a significant $10 million claim against the Bank, despite being obligated to do so under Argentine law. The appellate court affirmed the district court's judgment and order, with costs, and found the additional arguments presented by Adrogué Chico to be meritless.