Oro Negro Bondholders Secure Dismissal of Tort Suit Related to Long-Running Oro Negro Bankruptcy

Paul, Weiss secured the dismissal of a lawsuit asserting claims for abuse of process, conspiracy and other torts against our clients, an ad hoc group of bondholders of Mexican oil services company Oro Negro.

The plaintiffs—former Oro Negro executives—are defendants in criminal proceedings in Mexico, but are fugitives in the United States. The plaintiffs have alleged in a series of lawsuits that these criminal proceedings were the result of a vast conspiracy by the defendants and various Mexican officials.

New York Supreme Court Justice Gerald Lebovits dismissed the action on the grounds of forum non conveniens, finding that the dispute should be heard in Mexico because it centers on actions taken in Mexico by Mexican citizens and authorities, is governed by Mexican law, and overlaps with ongoing Mexican proceedings. He also found there was no personal jurisdiction in New York over three bondholder defendants.

The Paul, Weiss team in the New York state lawsuit included restructuring partner Andrew Rosenberg and litigation partners William Clareman, who argued the motion, and Aidan Synnott and counsel Robert O’Loughlin.