36 Months Of Litigation, US$5.8 Million Spent On Attorneys By Cayman Islands-Based Plaintiff And Havana-Based Defendants, Now The Trial. Two KCs Lead Each Side.

Initial Bonds Value Approximately US$1.3 Billion.

Plaintiff Seeks US$72,122,664.70 Plus Interest- Since Lawsuit Filing To Date Of Trial Is US$2,359,980.63 For Total Of US$74,482,645.33.

Jurisdiction, Sovereign Immunity, Transfer, Merits, Statute Of Limitations, Among Issues.

Interpol Issued Red Notice Against One Plaintiff Representative Requested By Cuba.

Hallmarks Of A Telenovelas: Bribery Allegations, Trials, Convictions, Incarcerations, Testimony From Jail.

From plaintiff filing: “It further appears from the purported judgment that a red notice has been issued by Interpol against [CRF Consultant] on the basis of the fabricated allegations made against him in the purported judgment. Although a search of the Interpol website suggests that no red notice has been issued against him, [CRF Consultant] was nevertheless prevented from entering Mexico in July 2021 and Interpol has since confirmed that a red notice has indeed been issued against him at the request of Cuba. It appears that Cuba / the Defendants are therefore using the false allegations of bribery as a way to harass [CRF Consultant].”

On Monday, 23 January 2023, in London, United Kingdom, an estimated eight-day Jurisdiction Trial will commence with pre-reading for two days, 18 January 2023 and 19 January 2023. The trial will be held at 10:00 am in The trial will be held at the High Court of Justice, City Court House, Rolls Building, 7 Rolls Buildings, Fetter Ln, London EC4A 1NL. CRF I Limited v Banco Nacional de Cuba and Republic of Cuba: Claim No. CL-2020-000092 (18 February 2020). Presiding will be Mrs Justice Sara Cockerill

Some of the witnesses reside in the Republic of Cuba so the Jurisdiction Trial will include live video feeds and simultaneous translation.

For the plaintiff, Cayman Islands-registered CRF I Limited, the solicitor is London, United Kingdom-based Rosenblatt with advocates Jawdat Khurshid KC and Andrew Pearson.

For the defendants, Republic of Cuba government-operated Central Bank of the Republic of Cuba and Government of the Republic of Cuba, the solicitor is London, United Kingdom-based PCB Byrne LLP with advocates Alison Macdonald KC, Anton Dudnikov, and Mark Belshaw.

“King’s Counsel (KC) are barristers or solicitor advocates who have been recognised for excellence in advocacy. They’re often seen as leaders in their area of law and generally take on more complex cases that require a higher level of legal expertise. Most senior judges once practiced as KCs.”

Since the complaint was filed on 18 February 2020, the plaintiff reported to the court spending including through the expected eight-day trial of approximately £2,153,000.00 (approximately US$2,603,827.00).

Since the complaint was filed on 18 February 2020, the defendants reported to the court spending of approximately £1,991,000.00 (approximately US$2,407,905.00) in addition to an estimated £540,000.00 (approximately US$653,073.00) to £675,000.00 (approximately US$816,341.00) to be incurred to/at the trial. Total range £2,045,000.00 (approximately US$3,060,978.00) to £2,666,000.00 (approximately US$3,224,246.00).

In the United Kingdom’s legal procedures, the loser reimburses the legal fees and court costs of the winner. Eventually, one party will be approximately £4,819,000.00 (approximately US$5.8 million) poorer due to what they spent and what they owe.

Trial witnesses for the plaintiff include David Charters, Jeetkumar Gordhandas, Don Stevenson, and Hosanna Rodriguez Calvo (expert witness).

Trial witnesses for the defendants include Maria Teresa Compte, Melissa Perez Fleitas, Raul Eugenio Olivera Lozano, Joscelin Rio Alvarez, Rene Lazo Fernandez, Vladimir Regueiro Ale, Odalys Del Nodal, and Dr. Juan Mendoza Diaz (expert witness).

The trial is to determine jurisdiction. If the plaintiff wins, then there will be arguments before the court as to merits. If the plaintiff loses, meaning that the assignment of debt to CRF I Limited was invalid, the debt itself is not extinguished. The plaintiff and the defendants will likely appeal if the verdict is unhelpful to their respective positions.

CRF I Limited (Cayman Islands), V. Banco Nacional de Cuba, The Republic of Cuba. High Court of Justice, Business And Property Courts Of England And Wales, Queen’s Bench Division, Commercial Court [Part 7 Claim- General Commercial Contracts], Royal Courts of Justice. [CL-2020-000092 Filed 18 February 2020; Court Filing Fee £10,000.00 (approximately US$13,000.00].

Rosenblatt (plaintiff)
Memery Crystal (plaintiff- firm merged with Rosenblatt)
7 King’s Bench Walk (plaintiff)
Gibson, Dunn & Crutcher UK LLP (previously for plaintiff)
PCB Byrne LLP (defendant)
Essex Court Chambers (defendant)
Uria Menendez (defendant)

Defendants’ Amended Response To The Claimant’s Part 18 Requests Of The Points Of Defense (4 January 2022)
Amended Points Of Defense (17 January 2022)
Order (17 January 2022)
Amended Points Of Reply (28 January 2022)
Second CMC Order (28 January 2022)
Consent Order (16 March 2022)
Consent Order (5 May 2022)
Re-Amended Points Of Reply (29 June 2022)
Consent Order (13 October 2022)
Consent Order (28 October 2022)
Consent Order (23 November 2022)
Consent Order (6 December 2022)
Consent Order (17 December 2022)

Claim Form (18 February 2020)
Order (8 March 2021)
Amended Claim Form (16 March 2021)
Consent Order (17 May 2021)
Sealed Amended Claim (14 June 2021)
Amended Points Of Claim (14 June 2021)
Amended Details Of Claim (15 June 2021)
Order (17 June 2021)
Consent Order (13 July 2021)
Consent Order (19 July 2021)
Points Of Defence (23 July 2021)
Consent Order (4 August 2021)
Points Of Reply (4 October 2021)
Defendant’s Response To The Claimant’s Part 18 Requests Of The Points Of Defence (11 November 2021)

Brief Details Of Claim

“1. The Claimant ("CRF I") is a company incorporated under the laws of the Cayman Islands which holds unpaid Cuban sovereign debt obligations.

2. The First Defendant is the Banco Nacional de Cuba ("BNC"), which is the "Borrower" under the Debts further described below.

3. The Second Defendant is the Republic of Cuba ("Cuba"), which is the "Guarantor" of such Debts.

4. CRF I claims, as assignee under a "Notice of Assignment and Agreement(s) to be bound" dated 13 June 2019, to which the Defendants confirmed their agreement by BNC's letter dated 25 November 2019, sums due and owing to it from the Defendants under the Debts and the Guarantees further described below.

5. The Debts comprise the following written agreements: (1) A "Short-Term Non-Trade Related Indebtedness" dated 17 January 1982, entered into between BNC as "Borrower" and Credit Lyonnais Bank Nederland NV as "Bank" as amended, (the "Credit Lyonnais Debt"); and (2) A "Short-Term Bank Non-Trade Related Indebtedness dated 30 January 1984, entered into between BNC as "Borrower" and lstituto Banco Italiano as "Bank" as amended (the "181 Debt") (together, the "Debts").

6. It was a term of each of the Debts that Cuba enter into a guarantee of the obligations of the "Borrower" thereunder substantially in the form set out in Part IV of the "Particulars" to the Debts (see Clause 23 of the Credit Lyonnais Debt and Clause 23 of the IBI Debt). Cuba entered into such guarantees: (1) in respect of the Credit Lyonnais Debt, on dates presently unknown to CRF I, but in any case by 25 January 1984 (as evidenced by BNC's letter of that date to Credit Lyonnais Bank Nederland NV); and (2) in respect of the IBI Debt, on 30 January 1984 (together, the "Guarantees").

7. As reflected in BNC's letter dated 25 November 2019, the principal amounts under the Debts (exclusive of all unpaid and accrued interests) are: (i) DEM 22,500,000 (equivalent to €11,504,067.33) in respect of the Credit Lyonnais Debt; and (ii) DEM 5,750,000 (equivalent to €2,939,928.32) in respect of the IBI Debt.

8. Interest has accrued on such principal amounts in accordance with the terms of the Debts.

9. The following table sets out in respect of each Debt the principal and accrued interest that are due and owing to CRF I as at the date of this Claim Form and the daily rate at which interest will continue to accrue after that date:

10. CRF I is entitled to and claims from each of the Defendants as "Borrower" in the case of BNC and as "Guarantor" in the case of Cuba: (1) the sum of € 72,122,664.70 in respect of principal and accrued interest under the Debts; and (2) a further sum to be quantified in respect of such further interest as has accrued under the Debts by the time of judgment or payment, whichever is the sooner.”

13 January 2022 Statement (Spanish) from the Central Bank of the Republic of Cuba: “La Superintendencia del Banco Central de Cuba informa que actualmente se está desarrollando en Londres un procedimiento judicial ante el Tribunal Superior de Justicia británico por una reclamación de recuperación de deuda contra el Banco Nacional de Cuba (BNC) y la República de Cuba. El demandante es CRF I Limited, un “fondo buitre” constituido como sociedad mercantil off shore en Gran Caimán. Como se conoce, los fondos buitres compran en el mercado secundario, a precios de remate, las deudas emitidas por países, para reclamar el pago inmediato de su 100% bajo amenaza de demanda judicial. En el procedimiento judicial se dirime si CRF es acreedor del BNC y de Cuba (por el monto de 72 millones de euros), quienes defienden que CRF no es acreedor del BNC ni de Cuba y nunca lo ha sido. El objeto de este procedimiento es deuda pública porque fue contraída por el BNC antes de 1997, cuando tenía funciones de Banco Central. Desde entonces, el BNC no tiene facultad para actuar en nombre del gobierno cubano. Tampoco para aprobar cesión de deuda pública sin la autorización previa del Ministerio de Finanzas y Precios y del Consejo de Ministros, dado que el BNC no puede, en ningún caso, autorizar la cesión de garantías otorgadas por el Estado (garantías soberanas). El BNC y Cuba jamás han desconocido sus deudas y han mantenido siempre el interés de negociar con sus legítimos acreedores. Tanto el BNC como Cuba están personados en el procedimiento y defenderán sus derechos. La Superintendencia del Banco Central de Cuba, como órgano de carácter técnico, con autonomía para el ejercicio de sus funciones asignadas por la Ley, relacionadas con la inspección, vigilancia y control sobre las instituciones que realicen actividad financiera y bancaria en el país, informará oportunamente los resultados de este proceso. Superintendencia del Banco Central de Cuba.”

13 January 2022 Statement (English) from the Central Bank of the Republic of Cuba: “The Superintendence of the Central Bank of Cuba informs that legal proceedings are currently being developed in London before the British High Court of Justice for a debt recovery claim against the Banco Nacional de Cuba (BNC) and the Republic of Cuba. The claimant is CRF I Limited, a “vulture fund” incorporated as a business company offshore in Grand Cayman. As is known, vulture funds buy in the secondary market, at auction prices, the debts issued by countries, to demand the immediate payment of their 100% under threat of legal action. In the judicial procedure it is decided if CRF is a creditor of the BNC and of Cuba (in the amount of 72 million euros), who defend that CRF is not a creditor of the BNC or of Cuba and never has been. The object of this procedure is public debt because it was contracted by the BNC before 1997, when it had functions as the Central Bank. Since then, the BNC has no power to act on behalf of the Cuban government. Neither to approve the assignment of public debt without the prior authorization of the Ministry of Finance and Prices and the Council of Ministers, since the BNC cannot, in any case, authorize the assignment of guarantees granted by the State (sovereign guarantees). The BNC and Cuba have never ignored their debts and have always maintained their interest in negotiating with their legitimate creditors. Both the BNC and Cuba are involved in the procedure and will defend their rights. The Superintendence of the Central Bank of Cuba, as a body of a technical nature, with autonomy for the exercise of its functions assigned by Law, related to the inspection, surveillance and control over the institutions that carry out financial and banking activities in the country, will inform in a timely manner the results of this process. Superintendence of the Central Bank of Cuba.”

LINKS TO RELATED ANALYSES

China-Owned Bank In London Sues Cuba Central Bank And Government Of Cuba. Either Sue For Custodian Account Holders Or Be Sued By Them? Embarrassing For Cuba To Be Sued By "Good Friend." December 21, 2021

NOTE: On 28 May 2021, London, United Kingdom-based ICBC Standard Bank Plc filed a lawsuit against Banco Nacional de Cuba and the Government of the Republic of Cuba. The lawsuit (CL-2021-000343) was filed in the High Court of Justice, Commercial Court, Part 7 Claim, Central Commercial Contracts and Arrangements. ICBC Standard Bank Plc is represented by London, United Kingdom-based Herbert Smith Freehills LLP. The defendants have no counsel listed. The last update to the lawsuit was 22 November 2021. The claim document has been completed, but has not been served. No documents have been filed- and no documents could be filed for months. LINK Total amount of claim by ICBC Standard Bank Plc against Banco National de Cuba and Government of the Republic of Cuba is approximately 200 Million Euros (approximately US$224.8 million). Total amount of interest is approximately 1 Billion Euros (approximately US$1.12 billion).

Gibson Dunn & Crutcher (London) Represented Plaintiff In US$100 Million Lawsuit Against Cuba. Firm Represents Plaintiff In Libertad Act Lawsuits In Florida, New Jersey, Texas. China A Defendant. December 07, 2021

UK Lawsuit Seeks US$100+ Million From Central Bank Of Cuba & Government Of Cuba. Four Countries. Three Banks. Questions- Defining A "Loan" And Capacity To Contract. Read The 14 Court Filings. December 06, 2021