A federal judge has rejected a special master’s attempt to force Venezuela and a gold mining company to absorb a $3.1 million legal bill tied to the sprawling Citgo sale litigation, ruling they should not be saddled with more than their “ordinary share” of the costs.
The dispute — the latest twist in yearslong efforts by creditors to auction off shares connected to Venezuela’s prized U.S. refinery asset — adds another layer of complexity to one of the most closely watched sovereign debt battles in U.S. courts.
Judge Rejects Fee Reallocation Request
In an oral order Monday, U.S. Circuit Judge Leonard P. Stark denied a late December bid by special master Robert Pincus to reallocate $3.1 million in legal fees he incurred defending against what he characterized as “frivolous” attempts to have him disqualified.
Pincus, who is overseeing the sale process, had argued that Venezuela, state-owned oil company Petróleos de Venezuela SA (PDVSA), and Canadian gold miner Gold Reserve should split the tab because they brought the disqualification motions.
Judge Stark disagreed.
“Notwithstanding that the motions to disqualify were the fourth and fifth such efforts filed in this action, and that the court denied the motions on multiple grounds, the court is not persuaded this situation merits requiring the moving parties to bear more than their ordinary share of the special master’s fees associated with the motions,” the judge said.
Stark, elevated to the Federal Circuit in 2022 after serving as a Delaware district court judge, continues to preside over numerous creditor actions against Venezuela in Delaware federal court.
