Southern District of Texas Dismisses $3 Million Equipment Supply Claim Against PDVSA on Jurisdictional and Pleading Grounds
A Spanish oilfield equipment supplier's $3 million breach of contract claim against Venezuelan state oil company PDVSA and its purchasing agent Bariven reached a critical juncture when the district court declined to enter default judgment and instead permitted defendants to file a motion to dismiss. The magistrate judge recommended granting the motion to dismiss, finding Ashburton's allegations constituted 'threadbare recitals of the elements of a cause of action, supported by mere conclusory statements' that failed to satisfy Twombly-Iqbal pleading standards.
Background and Commercial Context
Ashburton International Supply, S.L., a Spanish corporation supplying oil and gas services and equipment internationally, brought suit against Petróleos de Venezuela, S.A. (PDVSA), Venezuela's state-run oil company, along with three purchasing entities: PDVSA Services, Inc. (PSI), PDVSA Services, B.V. (PSBV), and Bariven, S.A. The dispute arose from six purchase orders placed between September 2013 and March 2015, with each order identifying the purchaser as "BARIVEN, S.A. c/o PDVSA Services, Inc." Ashburton alleged it timely delivered all equipment totaling $3,907,407.00, but defendants made only a partial payment on two invoices in February 2017, leaving a principal balance of $3,024,267 outstanding. Ashburton brought claims for breach of contract, quantum meruit, and acknowledgement of debt.
Procedural History and Service Complications
Ashburton initially sued PDVSA, PSI, and Bariven in Texas state court on June 9, 2020, for breach of contract and quantum meruit. PDVSA and Bariven removed the case to federal court on July 9, 2020. On May 7, 2021, Ashburton filed an amended complaint adding PSBV as a defendant and raising breach of contract, quantum meruit, and acknowledgement of debt claims against all defendants. On April 18, 2024, Ashburton moved for an order deeming service effective and for entry of default judgment against PDVSA and Bariven. On September 2, 2024, the magistrate judge issued a Memorandum and Recommendation finding that Ashburton had properly served PDVSA and Bariven and recommending default judgment be entered against both.
District Court Declines Default Judgment
On November 13, 2024, the district court adopted only the magistrate judge's recommendation as to service of process, but declined to enter default judgment. Instead, the court permitted PDVSA and Bariven to respond to the amended complaint by December 20, 2024. This decision opened the door for defendants to file their motion to dismiss the first amended complaint, which the magistrate judge now recommends be granted.
The Magistrate's Recommendation
In a Memorandum and Recommendation signed July 30, 2025, Magistrate Judge Peter Bray recommended that PDVSA and Bariven's motion to dismiss be granted. The magistrate judge found that Ashburton's allegations amounted to
"threadbare recitals of the elements of a cause of action, supported by mere conclusory statements"that failed to satisfy the pleading standards established in Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). The recommendation represents a significant setback for Ashburton's efforts to recover the outstanding balance on the purchase orders.