On November 20, the U.S. District Court for the District of Columbia ruled in favor of Gold Reserve, denying the Venezuela government’s motion to dismiss or stay the proceedings regarding the petition to confirm the arbitral award dated September 22, 2014. In 2012, the company brought litigation against the Venezuelan government seeking compensation for the nationalization of gold assets in Venezuela.
The order confirmed the award and entered judgment for the company against Venezuela totaling $760 million. In a detailed 39-page memorandum opinion, the court considered and rejected each of the arguments raised by Venezuela in opposition to the petition to confirm. As far as Venezuela’s request that enforcement of the judgment be stayed pending Venezuela’s annulment application before the Paris Court of Appeal, the court rejected Venezuela’s “effort to forestall defeat” and denied its request to stay enforcement.
“After a grand tour around the world of foreign and international law, the court ultimately holds that Gold Reserve may indeed have its award enforced right here in Washington [D.C.],” the court said. The judgment is immediately enforceable in the United States as a judgment of the United States District Court for the District of Columbia. Gold reserve intends to vigorously pursue all available measures to enforce and collect on the judgment, in full. Venezuela has the option of appealing the judgment to the U.S. Circuit Court of Appeals for the District of Columbia.