New York Appellate Division Affirms Valid Service on PDVSA Under FSIA and Contractual Waivers

MANHATTAN, N.Y. - EntSun -- The Supreme Court of the State of New York, Appellate Division, First Department, unanimously affirmed an order deeming service of process sufficient and complete in Sendibel Trading, S.A. v. Petróleos de Venezuela S.A., et al. (Appeal No. 5412; Case No. 2024-07807).

The appellate court upheld the November 13, 2024 decision of the Supreme Court, New York County, granting plaintiff Sendibel Trading, S.A.'s motion to deem service proper on Petróleos de Venezuela S.A. (PDVSA) and its guarantor.

Key rulings and findings include:

• Contractual waiver of immunity upheld: The court found that PDVSA expressly waived immunity from service of process and legal proceedings under the Foreign Sovereign Immunities Act (FSIA) through its New York-law governed note agreement.
• Special arrangement for service enforced: PDVSA irrevocably appointed Corporation Service Company (CSC) as its agent for service of process, constituting a valid "special arrangement for service" under 28 U.S.C. §1608(b).
• Service deemed effective despite CSC refusal: Delivery of the summons and complaint to CSC satisfied FSIA and contractual requirements, even though CSC declined to forward service to PDVSA.
• Burden placed on issuer, not plaintiff: The court emphasized that PDVSA—not the plaintiff—was contractually obligated to appoint a replacement agent if CSC ceased to act.
• Due process arguments rejected: Defendants' claims of lack of due process failed because they received timely actual notice of the action.
• FSIA policy reinforced: The decision aligns with the FSIA's purpose of facilitating suits against foreign sovereign instrumentalities arising from commercial activity in U.S. courts.

Sendibel Trading, S.A. was represented by The Law Offices of Robert M. Fox, New York, with Susan Adler of counsel. Defendants were represented by Vinson & Elkins LLP.

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The Appellate Division affirmed the order in full, without costs. As of December 19, 2025, the decision carries No Shepard's Signal™, indicating no negative subsequent history and that the ruling remains good law.

About The Law Offices of Robert M. Fox

The Law Offices of Robert M. Fox is a New York-based litigation firm focused on complex commercial disputes, cross-border litigation, and creditor enforcement matters.
More information: https://www.rfoxlaw.com/