Venezuela continues to face an increasing number of lawsuits and payment judgments, and this trend shows no signs of stopping. This time, we spotlight the case of Daniel Retter, acting as trustee of his law firm, against Petróleos de Venezuela S.A. (PDVSA) and its subsidiary, PDVSA Petróleo S.A., for failure to pay capital and interest on bonds valued at USD 200,000.
The lawsuit was filed in the U.S. District Court for the Southern District of New York seeking compensation for damages due to breach of contract, breach of warranty, and anticipatory breach of both obligations.
The bonds in question, carrying a coupon rate of 6.00% per annum, were to pay interest semiannually and principal in three equal installments. The lawsuit seeks, among other things, compensation for damages, interest, and attorney’s fees.
The Civil Lawsuit
On November 14, 2025, Daniel Retter, acting as trustee of his law firm, filed a civil lawsuit against Petróleos de Venezuela S.A. (PDVSA) and its subsidiary, PDVSA Petróleo S.A., in the U.S. District Court for the Southern District of New York, alleging non-payment of bonds valued at USD 200,000 held by the plaintiff. He specifies that the defendants breached the contract and warranty by failing to make scheduled payments of principal and interest.
The grounds for Daniel Retter’s lawsuit include:
- Contract breach by PDVSA,
- Anticipatory breach of contract due to non-payment to numerous bondholders,
- Warranty breach by PDVSA Petróleo, and
- Anticipatory warranty breach.
Daniel Retter seeks compensation for damages, interest, a court order against the defendants, as well as reimbursement for attorney’s fees and legal costs.
| Entity/Individual | Description |
|---|---|
| Plaintiff | Daniel Retter Citizen of Florida, acting as trustee of the plan “Law Offices of Daniel Retter PA PSP”. |
| Defendant (“Company”) | Petróleos de Venezuela S.A. Oil and natural gas corporation owned by the Bolivarian Republic of Venezuela, defined as a “foreign state” under U.S. law (28 U.S.C. §§ 1603(a)-(b)). |
| Defendant (“Guarantor”) | PDVSA Petróleo S.A. Wholly owned corporation of the “Company,” also defined as a “foreign state”. |
The court has jurisdiction under 28 U.S.C. § 1330(a) since the defendants are a foreign state not entitled to immunity.
Waiver of Immunity: The defendants explicitly waived their immunity in the bond contract (pursuant to 28 U.S.C. § 1605(a)(1)).
Commercial Activity: The lawsuit relates to commercial activities conducted by the defendants in the United States (pursuant to 28 U.S.C. § 1605(a)(2)).
Personal Jurisdiction and Venue: The defendants consented to the jurisdiction and venue of the court in the Southern District of New York through the terms of the bond contract. Additionally, it is argued that a substantial part of the events giving rise to the lawsuit occurred in this district.
Details of the bonds issued by PDVSA held by the plaintiff’s plan.
| Feature | Description |
|---|---|
| Asset | Bonds issued by Petróleos de Venezuela S.A. |
| Security Number | P7807HAR6 |
| Total Face Value (held by the Plan) | USD 200,000 |
| Coupon Rate | 6.00% per annum |
| Maturity Date | November 15, 2026 |
| Date of Purchase by Plaintiff | February 23, 2018 |
| Principal Paying Agent | Citibank, N.A. |
Contractual Obligations and Alleged Breaches
The lawsuit details the payment obligations of the defendants under the bond contract and their subsequent breach.
Contractual Payment Terms
Interest Payments: PDVSA was obligated to pay interest semi-annually on May 15 and November 15 of each year at a rate of 6.00% per annum.
Principal Payments: PDVSA was required to pay the outstanding principal in three equal annual installments on November 15 of 2024, 2025, and 2026.
Guarantee: PDVSA Petróleo S.A. unconditionally guaranteed PDVSA’s payment obligations concerning the bonds.
Allegation of Material Breach
The crux of the lawsuit is that PDVSA and the Paying Agent failed to make any payments on the Bonds to the plaintiff, whether for principal, interest, or otherwise. This failure is described as a material breach of both the main contract and the guarantee.
Detailed Causes of Action
The lawsuit is structured around four distinct causes of action addressing both past and future breaches.
1. Breach of Contract:
PDVSA breached a valid and binding contract by failing to make the interest and principal payments owed to the Plan, even though the plaintiff complied with all of its contractual obligations.
2. Anticipatory Breach of Contract:
PDVSA’s failure to pay this and numerous other bondholders demonstrates an “unequivocal intention to materially breach its remaining obligations”.
Anticipation of breach for the scheduled interest and principal payments for 2025 and 2026 is given.
3. Breach of Warranty:
PDVSA Petróleo S.A. violated its obligation to cover the payments that PDVSA did not make, thus failing to meet the terms of the warranty backing the bonds.
4. Anticipatory Breach of Warranty:
PDVSA Petróleo S.A.’s lack of action to remedy PDVSA’s current defaults expresses an “unequivocal intention” not to honor the warranty for future interest and principal payments owed.
Requested Remedies
Daniel Retter requests the court to issue a judgment in his favor that includes the following remedies:
- Compensation for damages, including actual, general, special, incidental, statutory, punitive, treble, and consequential damages, in an amount to be determined at trial.
- A judicial order prohibiting the defendants from continuing the improper practices, policies, and patterns described.
- Pre- and post-judgment interest as provided by law.
- Reimbursement for attorney’s fees, costs, and reasonable out-of-pocket expenses.
- Any further relief that the court deems just and appropriate.