Opinion ID: 75550
Heading Depth: 3
Heading Rank: 3

Heading: Dismissal of the Counterclaims Pursuant to the Act of State Doctrine

Text: 26 Unable to convince the district court to reinstate its previous order of dismissal, the defendants filed their answer and counterclaims to the third amended complaint. Their affirmative defenses asserted that FOGADE lacked standing to sue on behalf of Corpofin because FOGADE's intervention of that corporation was unlawful. Their counterclaims alleged that FOGADE and others had conspired to illegally confiscate in Venezuela and the United States assets of the defendants, including Bancor, Corpofin and ENB. Plaintiffs moved to dismiss the counterclaims on grounds that they were immune from suit under the foreign sovereign immunity doctrine and the act of state doctrine. On September 18, 1998, the district court granted plaintiffs' motion to dismiss as it applied to thirteen of the fifteen counterclaims on grounds of the act of state doctrine. On October 21, 1998, the court converted the motion to dismiss as it applied to the remaining two counterclaims into a motion for summary judgment and granted that motion on grounds other than the act of state doctrine. 27