In November 2021, Marks & Sokolov obtained a significant victory in the Supreme Court of the State of New York on behalf of a leading Russian bank, demonstrating that Russian court judgments can be recognized in the U.S.
In PJSC National Bank Trust v. Natalia Pirogova, Marks & Sokolov moved for summary judgment in lieu of filing a complaint to recognize three judgments obtained in Russia by Trust Bank to recover in excess of $20 million based upon defaulted loan agreements. This is an expedited procedure which involves less cost for creditors by circumventing the normal complaint, answer, and discovery process. Two judgments were obtained in Russian civil proceedings and the amount of these two judgments was then recognized as a claim in Russian bankruptcy proceedings.
The New York Court granted recognition of the Russian judgments, finding the three judgments were final, conclusive, and enforceable where rendered under New York law, even though the Russian bankruptcy proceeding was pending. The Court reasoned that the two Russian civil judgments were enforceable under Russian law, even though execution was stayed during bankruptcy, because the debtor had not been discharged. The Court also held that an order recognizing a claim in a Russian bankruptcy qualified as a judgment, and further held that the bankruptcy claim was enforceable, either as a claim in the bankruptcy or afterwards, given the debtor had not been discharged. The matter will now proceed to collection.
Marks & Sokolov is an international law firm, with related offices in the United States and Russia. It specializes in commercial litigation between the United States, Russia, Ukraine, and other countries of the former Soviet Union. Previously, its creditor attorneys obtained recognition of two Russian bankruptcies under Chapter 15 of the U.S. Bankruptcy Code, and recovered over $10 million of assets in the United States owed by the Russian debtor.
