Litigation of counsel Martin Flumenbaum and partner Brad Karp’s latest Second Circuit Review column, “‘Bugliotti v. Republic of Argentina’: COVID-Era Executive Order Revives Some Argentine Bondholder Claims,” appeared in the March 24 issue of the New York Law Journal. The authors discuss a recent decision in which the court addressed the automatic tolling effect of New York’s COVID-era executive orders on the state’s statute of limitations. Plaintiffs-appellants in the underlying action were bondholders seeking to recover principal payments on Argentina’s defaulted sovereign bonds. The bonds were deposited with a trustee and, when the bondholders sought enforcement, the Second Circuit affirmed dismissal of their action. The bondholders refiled in the Southern District of New York, but the district court dismissed once again, finding that New York’s “savings statute” did not apply and that the bondholders could not invoke the COVID-era executive orders pausing the statute of limitations absent a showing of equitable entitlement. On appeal, the Second Circuit concluded that, while the state’s civil practice law and rules did not rescue the bondholders’ claims, the COVID orders rendered some of their claims timely. In holding that the COVID-era executive orders operate as an automatic toll on the limitations period, the decision is significant in navigating statute of limitations issues in New York.
Litigation associate Michael Pisem assisted in the preparation of this column.
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