Court of Appeals Confirms Dismissal in Anglo Iberia v. Lodderhose
On March 29, 2010, the United States Court of Appeals for the Second Circuit affirmed the District Court for the Southern District of New York's dismissal of Anglo-Iberia Underwriting Management Company's appeal that P.T. Jamsostek (Persero) negligently supervised its employee, Prio Adhi Sartono, along with other Jamsostek employees acting together in an international commercial reinsurance fraud scheme that allegedly damaged Anglo-Iberia, in Anglo-Iberia et al. v. Lodderhose et al, docket number 08-2666-cv. P.T. Jamsostek is an instrumentality of the Republic of Indonesia.
The appeal did not contest whether Jamsostek and Indonesia are indeed foreign sovereigns entitled to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA), rather, it concerned whether the commercial activity exception under FSIA applied to the facts.
The Court of Appeals concluded that Anglo-Iberia.s negligent supervision claim against Jamsostek and Indonesia was not, in fact, grounded upon an action connected to commercial activity. The Court of Appeals held that the district court was correct in its decision that
the nature of Jamsostek's hiring, supervision, and employment of Sartono and other employees is directly concerned with "employment in the provision of a governmental program of health benefits through collection of employer contributions and payroll deductions" and that such employment is by nature non-commercial.Further, the Court of Appeals noted that even if it was assumed arguendo that they were indeed engaged in commercial activity, such alleged negligent supervision was not in association with commercial activity.
The Court of Appeals confirmed, therefore, the dismissal of the negligent supervision claim for lack of subject matter jurisdiction.-- Cassandra Sheehan, Legal Assistant, Berliner, Corcoran & Rowe, LLP, Washington, D.C.
Tue, / Embassy Law Link