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No U.S. Effect in Foreign Bids
Quoting the United States Supreme Court, … an effect is direct if it follows as an immediate consequence of the defendant's activity, in Republic of Argentina v. Weltover, Inc., 504 US 607, 618 (1992), the United States Court of Appeals for the Sixth Circuit affirmed the dismissal of a bid protest by an American telecommunications company filed in a United States court.
The bidder had paid a bidding fee to the Republic of Lebanon from an American account. In American Telecom Company, LLC et al. v. Republic of Lebanon, docket number 05-2408, the appellate court decided on August 29, 2007 that the payment does not equal a direct effect in the United States.
The dispute could not fall within the exception for commercial activities under the Foreign Sovereign Immunities Act, it ruled, and deserved dismissal. If Congress would have wanted every foreign governmental tender to fall within the exceptions of the FSIA just because of a fee payment from an American bank account, it would have said so, the court concluded. -- Clemens Kochinke, Berliner, Corcoran & Rowe, LLP, Washington.
Tue, / / Embassy Law Link
