Case of the Day: Kozma Investmentos v. Duda

The case of the day is Kozma Investmentos, Ltda. v. Duda (M.D. Fla. 2017). Kozma had a $14 million Brazilian arbitral award against Edson and Natalina Duda. It brought an action in the Florida state court against the Dudas and Geby Investments, LLC alleging that the Dudas had made fraudulent transfers to Geby to the detriment of Kozma, the creditor. The defendants removed the case to the District Court, and Kozma moved to remand. The defendants’ argument was that the award hadn’t been confirmed, and that Kozma was “essentially seeking to enforce an unconfirmed arbitration award that was entered in Brazil by setting aside as fraudulent the Dudases’ conveyance to Geby of certain real property located in Collier County, Florida in order to avoid its creditors.” Kozma’s argument was that under Brazilian law (specifically, Article 31 of the Brazilian Arbitration Act), the award had the status of a court judgment, and that it was therefore entitled to enforcement in Florida as a foreign judgment. Thus, it argued, the case did not arise under the New York Convention.

Continue ReadingCase of the Day: Kozma Investmentos v. Duda