Dechert Secures Victory for Themis Capital and Des Moines Investments Limited

Dechert LLP recently secured a win following five years of litigation culminating in a two-day bench trial for clients Themis Capital and Des Moines Investments Limited in a case against the Democratic Republic of Congo (“DRC”) and its central bank for failure to pay amounts due under a 1980 Credit Agreement.

The DRC contended that the claims were time barred, arguing that a series of letters that purport to acknowledge the amounts under the Credit Agreement and toll the statute of limitations were not valid because the signatories to these letters lacked actual or apparent authority to bind their principals. In a 58-page decision issued on July 9, by U.S. Southern District of New York Judge Paul A. Engelmayer rejected these arguments, finding that because the signatories had actual and apparent authority to sign the acknowledgment letters, that the claims were not time barred, that the Central Bank is jointly and severally liable to satisfy the debt, and that plaintiffs are entitled to compound interest, bringing their damages to nearly US$70 million.

Dechert partner Dennis Hranitzky led the team representing Themis Capital and Des Moines Investments Limited, with assistance from counsel Debra O’Gorman and associates Galia Porat, and Collin Hessney, and staff attorney Aaron Kamsler.

Hranitzky remarked that “while is unfortunate that the parties and the Court were forced to endure over five years of litigation to get to this point, we are nonetheless very pleased with the result. It is our hope that with this decision, the DRC will finally choose to engage in the kind of good faith in settlement discussions Themis and Des Moines have been attempting to engage them in since long before bringing the lawsuit.”

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