determined exchange rate of foreign currency for enforcement of foreign
[*1] Elizabeth M. Bohn, Esq., Jordan Burt, Miami, FL, Attorneys for
Louis G. Adolfsen,
Esq., Melito & Adolfsen P.C., New York, NY, Attorneys for defendant Mark
JUDGES: WILLIAM H.
PAULEY III, U.S.D.J.
OPINIONBY: WILLIAM H.
WILLIAM H. PAULEY III,
Plaintiff the Society
of Lloyds (Lloyds) and Defendant Mark Rose (Rose)
stipulated to the validity and enforceability of a 1998 English judgment in
favor of Lloyds and against Rose. This Court so ordered and
entered that Stipulation of Settlement on October 16, 2003. While the parties
agree that the amount presently due Lloyds under the Stipulation is £
355,513.04, they disagree regarding the exchange rate to convert the judgment
from British Pounds to U.S. Dollars.
This Court has
reviewed the parties letter submissions concerning the exchange rate to be
applied. The Stipulation established that the English judgment was in the
amount of UK £ 327,598.60 (U.S. $ 543,702.37), which represents an
exchange rate of 1.65. Thus, the parties demonstrated their mutual
understanding that the exchange rate recited in the Equitas contract (1.51)
does not govern the English judgment, [*2] nor does the contract
suggest that it should.
actions involving Lloyds and other Names in which the exchange rate issue has
been resolved against Lloyds, this action presents the issue under New York
law. See Vishipco Line v. Chase Manhattan Bank, N.A., 660 F.2d 854, 865 (2d
Cir. 1981) (As a federal court sitting in diversity, we must apply the currency-conversion
rule employed by the courts of New York.). That question has not been
resolved in other lawsuits. New York Judiciary Law § 27(b) directs that when a
court enters a judgment or decree in a foreign currency, the applicable
exchange rate is that prevailing on the date of entry of the judgment or
This Court so
ordered the parties Stipulation concerning the validity of the English
judgment on October 16, 2003. Therefore, the exchange rate governing the amount
due Lloyds by Rose is the rate of exchange prevailing on October 16, 2003.
Lloyds is stayed from taking any action with respect to the letter of credit
obtained by Rose until August 19, 2004.
Dated: August 9, 2004
New York, New York
WILLIAM H. PAULEY III