IBE Trade v. Litvinenko – International Litigation Over Privatization

Represented IBE Trade, an international manufacturer and trader of fertilizers, in a complicated case involving the theft by an employee of an entire factory. IBE Trade purchased the factory from the Bulgarian government as part of a privatization program. An IBE employee named Litvinenko then conspired with rogue elements in Bulgaria to fraudulently seize control of the plant, stripping IBE of its ownership interest.

Herrick sued Litvinenko in New York and, after a several-week trial, the trial court ruled in IBE's favor, ordering him to return of control of the plant to IBE and to pay $11 million in damages. Litvinenko refused to comply and was jailed for contempt, remaining incarcerated for over a year and half. Numerous appeals ensued and all, including the incarceration for contempt, were ultimately upheld.

(IBE Trade Corp. v. Litvinenko, 288 A.D.2d 125, 733 N.Y.S.2d 161 (1st Dept. 2001)(Affirming finding of contempt); People ex rel. Kuby v. Warden, Brooklyn House of Detention, 305 A.D.2nd 339, 757 N.Y.S.2d 889 (2nd Dept. 2003)(Refusing to release Litvinenko from incarceration after over a year in jail); IBE Trade Corp. v. Litvinenko, 298 A.D.2d 285, 748 N.Y.S.2d 741 (1st Dept. 2002)(Affirming post-trial decision and judgment awarding ownership); IBE Trade Corp. v. Litvinenko, 835 N.Y.S.2d 557 (1st Dept. 2007)(Affirming $11 million judgment).