Finanz Aktiengesellschaft Zurich v. Banco Economico Sociedade Anonima
United States Court of Appeals for the Second Circuit
192 F.3d 240 (1999)
Finanz AG Zurich (plaintiff) held promissory notes guaranteed by the Cayman Islands branch of Banco Economico (defendant), payable through Banco's New York branch. After Brazil's central bank forced Banco into liquidation in Brazil, the U.S. Comptroller of the Currency entered a consent order liquidating Banco's New York branch and its liabilities separately. When Finanz was denied payment in New York and sued there, the case was removed to federal court, which dismissed on international comity grounds in deference to the Brazilian proceeding. Finanz appealed, arguing comity was improper because the Brazilian proceeding violated U.S. policy and was procedurally unfair.
Whether a foreign bankruptcy proceeding is entitled to deference under the doctrine of international comity where the proceeding does not violate United States law or policy and is procedurally fair.