The Second Circuit U.S. Court of Appeals has agreed to expedite the Citibank appeal from a ruling over a $900 million payment error.

On Thursday, March 18, 2021, the Appeals Court agreed to fast track the proceedings following a motion by Citi.

Citibank is the administrative agent for certain term loans taken out by Revlon Consumer Products Corporation. As the administrative agent, Citibank is responsible, among other things, for transmitting payments on the loans from Revlon to its lenders. On August 11, 2020, Revlon instructed Citibank to transmit interim interest payments to its lenders. But instead of sending just the $7.8 million in interest payments, Citibank also accidentally wired approximately $900 million of its own money to Revlon’s lenders.

Citi notified the lenders of the mistake, and many of them returned Citibank’s money. But the defendants in this case – ten investment advisory firms that manage entities that altogether received more than $500 million of Citibank’s mistakenly wired money – refused.

On August 17, 2020, Citibank commenced litigation, seeking return of its funds. The District Court entered temporary restraining orders directing the defendants and those acting in concert with them not to dissipate Citibank’s funds, and continued the temporary restraining orders on defendants’ consent until a bench trial could be held.

The District Court issued its findings of fact and conclusions of law on February 16, 2021, and it entered judgment in defendants’ favor on that date. Citibank promptly appealed.

Citi argues that the Appeals Court’s ordinary briefing deadlines risk harm to the parties and to the markets. Briefing in this case could take up to almost seven months. And briefing would be followed by a wait for oral argument and then any period that the Court requires to decide the case and issue its opinion.

At present, the parties are briefing in the District Court whether Citibank’s funds should remain frozen pending the outcome of this appeal. Citibank has explained that it will be irreparably harmed if its money is dissipated while the appeal plays out, while defendants contend they are harmed if they cannot re-invest or otherwise use the money while the appeal is pending.

The parties disagree with each other’s claims of harm. But they agree on expediting the briefing and oral-argument schedule.

On March 18, 2021, the Court agreed to expedite the appeal case and to set the following schedule:

Citibank’s Opening Brief is due April 29, 2021; Appellees’ Brief is due June 21, 2021; Citibank’s Reply Brief is due July 12, 2021; the Deferred Joint Appendix is due July 19, 2021; the Final Form Briefs are due July 22, 2021; Oral Argument in August 2021. This is subject to the approval of the presiding Judge.