The opinion of the court was delivered by: Hon. Rudi M. Brewster United States Senior District Judge
ORDER: (1) GRANTING JOINT MOTION TO DETERMINE AMOUNT OF PRINCIPAL AND CERTAIN INTEREST; (2) GRANTING EX PARTE APPLICATION TO DEPOSIT FUNDS WITH CLERK OF COURT; (3) SETTING BRIEFING SCHEDULE ON REMAINING MOTIONS; and (4) SERVING COPY OF THIS ORDER ON PARTIES IN RELATED MATTER
On April 17, 2012, the Court convened a status conference in this case to discuss the remaining matters in this international arbitration matter. This Order establishes the procedure for the remaining matters.
I. Joint Motion to Determine Amount of Principal and Other Undisputed Sums Cubic Defense Systems, Inc. ("Cubic") and the Ministry of Defense and Support for the Armed Forces of the Islamic Republic of Iran ("Iran" or "Ministry") agreed to calculate those parts of the judgment which were undisputed, including: (1) the principal and arbitration costs, (2) 12% interest awarded by the international arbitration panel from September 24, 1991 to the date of the final arbitration award, May 5, 1997; and (3) post- judgment interest from August 10, 1999 to the date of deposit with the Clerk of the Court. They submitted a joint motion to determine those amounts by their calculation.
The Court gave the Lien Claimants an opportunity to contest the calculation by filing either a statement of non-opposition or an objection by April 16, 2012 at noon. The Rubin and Rafii Lien Claimants filed a statement of non-opposition, but the Peterson Lien Claimants did not respond or appear at the status conference.
For good cause shown, the Court grants the joint motion to determine the amount of the principal, arbitration costs, pre-award interest, and post-judgment interest, as follows:
(1) The principal amount of the judgment, including the award of $2,808,519, arbitration costs of $60,000, and 12% interest from 9/24/91 to 5/5/97 is $4,758,651.63.
(2) The post-judgment interest rate is 4.966% per the tables following 28 U.S.C. § 1961 and is compounded annually pursuant to § 1961(b). The following table sets forth the correct interest calculation to and including April 6, 2012. Until the next compounding anniversary, which would be August 10, 2012, the daily interest accrual is $1,155.03. Cubic anticipates that it will deposit the funds this week, and it will add the daily accrued interest from April 6, 2012 to the actual date of deposit.
Principal Date Date Days Annual Interest Amount Owed $4,758,651.63 8/10/99 8/9/00 366 $236,314.64 $4,994,966.27 $4,994,966.27 8/10/01 365 $248,050.02 $5,243,016.29 $5,243,016.29 8/10/02 365 $260,368.19 $5,503,384.48 $5,503,384.48 8/10/03 365 $273,298.07 $5,776,682.56 $5,776,682.56 8/10/04 366 $286,870.06 $6,063,552.61 $6,063,552.61 8/10/05 365 $301,116.02 $6,364,668.64 $6,364,668.64 8/10/06 365 $316,069.44 $6,680,738.08 $6,680,738.08 8/10/07 365 $331,765.45 $7,012,503.53 $7,012,503.53 8/10/08 366 $348,240.93 $7,360,744.46 $7,360,744.46 8/10/09 365 $365,534.57 $7,726,279.03 $7,726,279.03 8/10/10 365 $383,687.02 $8,109,966.05 $8,109,966.05 8/10/11 365 $402,740.91 $8,512,706.96 $8,512,706.96 4/6/12 240 $277,207.23 $8,789,914.19
All issues concerning discretionary pre-judgment interest and discretionary attorney's fees are reserved. No claim or defense concerning those issues is waived or affected in any way by this Order.
II. Ex Parte Application to Deposit the Undisputed Amounts with Clerk of Court
Various laws, regulations, and executive orders bar payment of funds to Iran as part of the United States' sanctions. Cubic applied for, and on March 26, 2012, received a license from the United States Department of Treasury's Office of Foreign Assets Control ("OFAC"), an office that supervises the sanctions against Iran, to deposit the funds with the Clerk of the Court.*fn1
Because Cubic wants to stop the accrual of post-judgment interest, it wants to make the deposit with the Clerk of the Court as soon as possible. Cubic filed this request in two forms: (1) an ex parte application for immediate deposit, and, (2) as a back-up, a noticed motion to deposit the funds and determine the effect of the deposit in terms of satisfaction of the judgment, the appeal bond, and the reporting requirements under the OFAC license.
As discussed above, the Court gave the Lien Claimants an opportunity to object to the immediate deposit of funds, as requested in the ex parte ...