New York court sides with Ali Al-Karim on EU and UK sanctions

02/06/25

Ali Al-Karim acted as a legal expert on sanctions in The District Court for the Southern District of New York (SDNY) on a point of sanctions law. The Petitioner sought discovery against Akin Gump under the well-known Section 1782 procedure. That disclosure was sought in aid of satellite litigation in Europe concerning a $1 billion fraud dispute in relation to the largest food and beverages company in the Balkans.

The Petitioner is sanctioned in the EU. Akin Gump argued that to disclose documents to a sanctioned entity would breach EU and UK sanctions laws. Accordingly, Akin argued that, in accordance with US case-law on S.1782, the Court should not order disclosure where it would put the disclosing party in breach of foreign law.

The parties adduced conflicting legal expert evidence on the point, The first instance court preferred Al-Karim’s testimony that disclosure under s.1782 would not violate EU or UK sanctions. The Court therefore found in favour of the Petitioner and ordered discovery.

Akin Gump appealed that decision. On 30th May 2025, the appeal court dismissed the appeal. In doing so, Judge Engelmayer held that the first instance judge was correct to prefer Al-Karim’s testimony, and therefore ordered Akin to give disclose to the Petitioner.