United States District Court, S.D. New York
August 9, 2004.
THE SOCIETY OF LLOYD'S, Plaintiff,
MINNA JANE EDELMAN, KENNETH GROSS, TODD GROSS, WALLACE COLBY HENDERSON, JUDITH P. KENNY, BARBARA LYONS, MARK STEPHEN ROSE, and JOHN PLAYER CROSBY, Defendants.
The opinion of the court was delivered by: WILLIAM PAULEY, District Judge
Plaintiff the Society of Lloyd's ("Lloyd's") and Defendant Mark
Rose ("Rose") stipulated to the validity and enforceability of a
1998 English judgment in favor of Lloyd's 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 Lloyd's 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, nor does
the contract suggest that it should. Despite similar actions involving Lloyd's and other Names in
which the exchange rate issue has been resolved against Lloyd's,
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 Lloyd's by Rose is the
rate of exchange prevailing on October 16, 2003. Lloyd's is
stayed from taking any action with respect to the letter of
credit obtained by Rose until August 19, 2004.
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