EIE Guam Corp. v. Long Term Credit Bank of Japan, Ltd.
Opinion
Lead Opinion
We are called on to decide whether a voluntarily joined foreign sovereign may remove a case from a territorial court to a federal district court when the foreign sovereign obtained the original defendant’s interest by assignment after the commencement of the litigation. We answer that question “yes” and, accordingly, affirm the district court’s exercise of jurisdiction over this case.
FACTUAL AND PROCEDURAL HISTORY
EIE Guam Corporation (“EIEG”) is a Guam corporation that is a wholly owned subsidiary of a Japanese corporation, EIE International, Inc. In July of 1992, EIEG obtained a loan of $110.3 million from the Long Term Credit Bank of Japan (“Bank”) for the construction of the Hyatt Regency Guam Hotel (“Hotel”). In exchange, *638 EIEG executed a construction loan agreement, note, and mortgage on the Hotel. The mortgage allowed the Bank to foreclose on the Hotel if EIEG defaulted on the loan.
EIEG defaulted on the loan in 1993. The loan was extended for one year, but then fell back into default. A Forbearance Agreement was executed by the parties, but collapsed. EIEG has made no payment to the Bank since 1995.