In TIG Insurance Co. v. Republic of Argentina, the United States Court Appeals for the District of Columbia Circuit ruled on July 30, 2020, that the lower court must look at the totality of circumstances when assessing whether real estate owned by a foreign state is immune from jurisdiction and execution. The plaintiff sought to execute a judgment into such a property in Washington, DC, arguing that it was used commercially when the embassy put it up for sale. The embassy countered that it was not commercially used because (1) it held embassy files, and (2) it was removed from the market before the court ruled on the registration of the judgment in Washington and issued a writ of execution.
The appellate court found that the lower court based its dismissale of the plaintiff's motion on too narrow grounds. It explains the factors in the analysis of the exceptions of a state from foreign sovereign immunity under the Foreign Sovereign Immunities Act which range from jurisdictional immunity to execution immunity. After considering the standards proposed by the parties, it sent the case back to the United States District Court for the District of Columbia, ordering an assessment of the totality of circumstances. Ultimately, the embassy may lose its property to the creditor. -- Clemens Kochinke, partner, Berliner Corcoran & Rowe LLP, Washington, DC.
Thu, / Embassy Law Link