Judge Preska to Decide on Discovery Evidence in YPF CIADI Arbitration
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TL;DR
- Judge Loretta Preska will rule on whether Burford Capital can use discovery evidence from a US case in CIADI arbitration against Argentina.
- The parties agreed Burford can use pre-2023 litigation evidence, but not later evidence related to asset identification.
- Two key disputes remain: Burford's right to use asset data in future enforcement and YPF's objection to use of information concerning itself.
- Preska's decisions may be appealed by the parties.
Overview
On July 7, 2026, a hearing will take place in New York before Judge Loretta Preska, who will determine whether Burford Capital can use certain discovery evidence obtained in US litigation for use in potential arbitration proceedings before the International Centre for Settlement of Investment Disputes (CIADI) in the ongoing dispute over the 2012 expropriation of YPF by Argentina.
What Happened
The long-running dispute stems from Argentina's 2012 expropriation of a 51% share in energy company YPF previously owned by Repsol.
Burford Capital, funding claims from former minority shareholders, previously obtained a $16 billion judgment against Argentina, which was overturned by the New York Court of Appeals.
With the US appellate reversal, Burford seeks to pursue claims before CIADI. Now, Judge Preska is deciding if evidence acquired through US discovery can be used in the arbitral process.
Argentina, YPF, and Burford agreed that only materials provided before Judge Preska's 2023 ruling-related to the merits of the dispute-can be used. Evidence focused on asset identification after the ruling is excluded.
Two unresolved issues remain: whether Burford may use asset data for any future CIADI award enforcement; and whether any YPF-related information may be used, since YPF argues it cannot be a CIADI arbitration party.
Context
The hearing follows major developments, including the reversal of a significant damages award against Argentina and the pursuit of a parallel pathway through investment arbitration at CIADI.
Burford Capital is considering all options, including potential appeal to the US Supreme Court, while preparing for a CIADI case, which could last several years. The use of information gained via US litigation could impact the scope of evidence in future proceedings.
Why It Matters
- Judge Preska's decisions on evidence use could directly affect the conduct and scope of the impending CIADI arbitration.
- The outcome impacts Argentina's exposure and Burford's enforcement capabilities, clarifying how evidence from domestic US litigation may cross over into international arbitration.