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Second Circuit Clarifies Rule on Foreign Anti-Suit Injunctions

October 25, 2007

By Chris Dugan, James Berger and Victoria Ashworth

On September 7, 2007, the Second Circuit affirmed with slight modifications a decision of the United States District Court for the Southern District of New York granting a foreign anti-suit injunction in the matter of Karaha Bodas Company, L.L.C. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara (KBC v. Pertamina). The Second Circuits decision clarifies the rule applicable to such injunctions, and held that its prior decision in China Trade and Dev. Corp. v. M.V. Choong Yong governs all determinations relating to anti-foreign-suit injunctions, regardless of whether such injunctions are sought in connection with parallel proceedings or to protect a judgment in a previously decided action.

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