In the CITGO auction process, dismissed workers from PDVSA filed a motion in the United States District Court for the District of Delaware, demanding that the court-appointed expert, Robert Pincus, answer questionnaires regarding how their rights will be compensated in the asset sale of the refinery.
The NGO Petroamigos de Venezuela seeks compensation for the dismissed professionals, and they do not require power from all affected individuals, as this is a claim based on the illegal dismissal they suffered from the Venezuelan oil company.
Motion Requesting Response from the CITGO Auction Expert
On June 21, 2024, Leroy Garrett, representing the non-governmental organization Petroamigos de Venezuela, submitted a motion to the United States District Court for the District of Delaware, requesting that the court-appointed expert of the CITGO auction, Robert Pincus, respond to the questionnaires sent on April 28 and June 9, 2025.
The workers informed the court that Special Magistrate Pincus has not responded to requests for information related to their human rights in claims against parties in Venezuela and PDVSA, connected to the CITGO auction.
The filing raises the possibility that the court considers additional and equitable compensation for unsecured creditors and requests an order that compels Robert Pincus to respond and a hearing to address these matters.
Repeated Failures of Robert Pincus
Robert Pincus has repeatedly failed to communicate follow-up
Leroy Garrett, on behalf of PetroAmigos de Venezuela, refers to the court that Robert B. Pincus should respond to questionnaires related to the evaluation of workers’ objections to his participation in the CITGO auction.
They emphasize that Pincus has repeatedly failed to communicate follow-up and has violated Local Rule 7.1.3, which requires a response within 14 days. They highlight the need for fairness and transparency in the undervalued asset sale process and remind that expropriation without proper compensation violates international law.
It indicates that, despite follow-up communications, Pincus has not responded to the questionnaires from Petroamigos de Venezuela, which constitutes a violation of the rule. This hinders the fair resolution of workers’ human rights claims in the CITGO case.
Expropriation Without Proper Compensation Violates Inherent Sovereignty
The dismissed workers from PDVSA stress that “expropriation without proper compensation violates inherent sovereignty and property rights in violation of international law, and that any legally exchanged property for such property is present in the United States in connection with commercial activity conducted in the U.S. by the foreign state.”
Leroy Garrett, as a U.S. citizen and member of PetroAmigos de Venezuela, seeks information about the sales process and consideration of their claims. His main objection is against the confiscation of workers’ funds from PDVSA, totaling USD 28 million under 28 U.S.C. § 1605(a)(3).
Garrett argues that the court’s decision in Crystallex International Corp. v. Bolivarian Republic of Venezuela, which determined that “PDVSA is the alter ego of Venezuela, as the Venezuelan government exercises extensive control over PDVSA’s operations and decision-making,” reinforces his argument that expropriation violates principles of equity.
What the Dismissed Workers from PDVSA Are Asking
Leroy Garrett and Petroamigos de Venezuela are requesting the Delaware Court:
An order compelling Pincus to respond to D.I. 1746, 1751, and 1791 by July 1, 2025.
A hearing before July 1, 2025, to address this motion and D.I. 1771.
Leave to correct deficiencies based on case law stating that “in the absence of any stated appearance or reason —such as undue delay, bad faith, or dilatory motive by the applicant, repeated failure to correct deficiencies with previously allowed amendments, improper prejudice to the opposing party due to the admission of the amendment, the futility of the amendment, etc.— the leave must be granted, as required by the rules, liberally.”
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