WASHINGTON - The Central Bank of Curaçao and Sint Maarten (CBCS) secured a significant victory in a lawsuit alleging improper expropriation in violation of international law and treaties in the U.S. District Court for the District of Columbia.
In 2018, the CBCS was compelled to implement emergency measures to restructure and safeguard Ennia, a crucial provider of insurance and pension benefits on Curaçao. The CBCS had serious concerns about fund mismanagement and improper valuation of certain Ennia assets. These concerns were exacerbated by the transfer of nearly $100 million from the insurance companies to the individual accounts of the ultimate owners. Litigation regarding this conduct remains pending in Curaçao.
On January 17, 2023, Nina Ansary, the daughter of the majority shareholder of Parman International BV (a Curaçao holding company owning Ennia), filed a complaint against the CBCS. Ansary alleged $110 million in damages, claiming they resulted from the unlawful expropriation of her 15.9% stake in Parman when the CBCS exercised its regulatory powers over Ennia. She also challenged the CBCS’s ongoing restructuring of the insurance companies, asserting mismanagement and violations of international law and treaties. Ansary argued that the CBCS was subject to suit in the United States under the Foreign Sovereign Immunities Act (FSIA).
The CBCS's legal team, Davis Polk, filed a motion to dismiss, vigorously contesting the plaintiff’s theories establishing jurisdiction in the United States. Davis Polk argued that the CBCS retained immunity from suit in the U.S. and that none of the exceptions to the FSIA’s grant of immunity applied. The court ultimately agreed, determining that the CBCS was entitled to sovereign immunity and dismissed the action.