Venezuela is facing an increasing number of lawsuits and payment judgments, causing courts to be overwhelmed with various legal actions. Among them is Joao Donisio De Sousa, who has requested the Southern District Court of New York to postpone and reschedule the pre-trial conference. This extension is necessary because the defendants—Venezuela, FOGADE, and a defendant in rem of USD 6,000,000—have yet to appear in court.
The initial pre-trial conference in the case of De Sousa against the Bolivarian Republic of Venezuela and others, originally set for July 29, 2025, has been postponed to September 26, 2025, due to the defendants’ non-appearance and the incomplete diplomatic service to Venezuela as required.
The Court has acknowledged the need for this postponement to complete the notification process and give the defendants an opportunity to respond.
Request and Order for Postponement of Pre-Trial Conference
The plaintiff, Joao Donisio De Sousa, through his attorney Thomas E. Butler, requested the postponement of the initial pre-trial conference scheduled for July 29, 2025. He also asked for an extension on deadlines to submit the joint letter and proposed Civil Case Management Plan and Scheduling Order.
This request arises because the defendants, including Venezuela, FOGADE, and a defendant in rem of USD 6,000,000, have yet to appear in court.
Service to FOGADE and the Defendant In Rem:
De Sousa served FOGADE and the defendant In Rem on June 6, 2025, in accordance with the established rules. As of the date of the request—July 22, 2025—they have not appeared or contacted the plaintiff regarding the conference. Thus, the plaintiff was unable to obtain their position on the postponement request.
Service to Venezuela:
De Sousa also began service to Venezuela through diplomatic channels pursuant to 28 U.S.C. § 1608(a)(4). However, service remains incomplete as the court clerk has not received a diplomatic note from the U.S. Department of State, which is necessary for service under § 1608(a)(4).
FOGADE and the defendant In Rem were required to respond to the lawsuit within 60 days of notification, by August 5, 2025. Joao De Sousa hopes that the deadline for Venezuela to appear has begun and may have possibly expired by the proposed postponement date.
Joao Donisio De Sousa requested that the conference be postponed until September 23, 2025, and Judge Jennifer L. Rochon granted the postponement to September 26, 2025, at 10:00 a.m.
Court Requests Clarification on Notification Process
On May 6, 2025, Judge Jennifer L. Rochon of the U.S. District Court for the Southern District of New York issued an order requiring the plaintiff to submit a supplemental letter by May 12, 2025, addressing several critical points related to the notification process.
The judge sought explanations regarding the strict adherence to the hierarchical procedures established in 28 U.S.C. § 1608 for notification to foreign states and their agencies. In this regard, she required De Sousa to detail his efforts to attempt notification to any of the defendants via “delivery of a copy of the summons and complaint in accordance with any special agreement for notification between the plaintiff and the foreign state.”
The order emphasized the hierarchical nature of the notification methods under U.S. law. The court requested clarification on whether the plaintiff is indeed proposing that Venezuela be notified under 28 U.S.C. § 1608(b)(3)(C), or if this was a typographical error, and instead proposes notification under § 1608(a)(4), as indicated in his initial motion. This distinction is crucial due to the hierarchy of notification methods.
The court also inquired whether the plaintiff “proposes that the Court authorize and appoint a specific process agent to deliver copies of the summons and complaint, along with translations of each, to FOGADE and the Defendant In Rem; and if not, why not.”
The Lawsuit
On April 22, 2025, João Dionisio De Sousa filed a lawsuit in the U.S. Bankruptcy Court for the Southern District of New York against the Bolivarian Republic of Venezuela and the Deposit Protection Fund (FOGADE), seeking USD 22,724,000 along with interest and legal costs, as well as any other relief deemed just and proper.
This Venezuelan-Luso citizen is seeking to recover the referenced amount in U.S. Treasury Bills that De Sousa pledged as collateral for loans obtained from Banco Canarias de Venezuela, Banco Universal C.A. Following the intervention and subsequent liquidation of this bank by Venezuela through FOGADE, and despite De Sousa fully repaying the loans, the sovereign defendants have refused to return the Guarantee.
The lawsuit is based on in rem jurisdiction over the guarantee located in New York, as well as jurisdiction under the Foreign Sovereign Immunities Act (FSIA), arguing that Venezuela and FOGADE do not have sovereign immunity due to the exceptions of “commercial activity” and “expropriation.” The plaintiff seeks a judicial declaration of his legitimate ownership of the Guarantee and its return, as well as damages for expropriation, unjust enrichment, and money had and received.
Joao Dionisio De Sousa demands a judgment that:
- Declares that the plaintiff is the rightful owner of the Guarantee and that it must be returned to him immediately.
- Orders the sovereign defendants to immediately release the Guarantee to the plaintiff.
- Awards additional and/or consequential damages in an amount to be determined at trial, not less than USD 22,724,000, along with pre-judgment interest and costs.
- Grants any other relief that is just and appropriate.
Check out “Guerra en el sur del Caribe: análisis de la crisis Venezuela-EE.UU. 2025” on Sin Filtros: