RE: Seb on X4 Aug 2025 22:00
YPF Expropriation Case - Exchange Rate Controversy
Judgment-Day Rule
Judgment-Day Rule
Breach-Day Rule
Breach-Day Rule
1 The Judgment-Day Rule provides that, in cases where the cause of action is based on an obligation denominated in a currency other than the U.S. dollar, a New York court must enter its judgment in the foreign currency, using the exchange rate prevailing on the date the judgment is entered.
The Judgment-Day Rule specifically provides that in a case where a cause of action is based on an obligation denominated in a currency other than U.S. dollars, a New York court must render its judgment in the foreign currency at the rate of exchange prevailing on the date of entry of judgment.
2 There must be a breach of a payment obligation that is denominated in a currency other than U.S. dollars.
3
There must be a breach of a payment obligation that is denominated in a currency other than U.S. dollars
The lawsuit filed must be for a specific amount or, at the very least, for the payment of damages related to a breach of a payment obligation.
The lawsuit filed must be for a specific amount or, at the very least, for the payment of damages related to a breach of a payment obligation.
The Breach-Day Rule provides that, in cases where the cause of action is based on a breach of contract not denominated in a specific foreign currency, the court must use the exchange rate in effect on the date the breach occurred, and not the exchange rate on the day the judgment is entered.
The Breach-Day Rule provides that in a case where a judgment involves a breach of contract obligation not denominated in a foreign currency, the court should use the foreign exchange rate in effect on the date the breach occurred—not the date the judgment is entered.
The underlying breached obligation must be a performance obligation, not a payment obligation denominated in a particular foreign currency.
The underlying breached obligation must be a performance obligation, not a payment obligation denominated in a particular foreign currency
Therefore, the lawsuit filed must be for the breach of an obligation to perform, not for the breach of an obligation to pay a certain sum denominated in a foreign currency.
Thus, the lawsuit filed must be for the breach of an obligation to perform, not for the breach of an obligation to pay a certain sum denominated in a foreign currency
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