Litigating Expropriation Claims in U.S. Courts
Foreign sovereigns generally enjoy sovereign immunity in the United States by operation of the Foreign Sovereign Immunities Act (FSIA). The FSIA specifically provides, however, that a foreign sovereign shall not be immune in any case in which “rights in property taken in violation of international law are in issue.” On its face, this expropriation exception…
Continue ReadingFurther Developments in Smart Study
TLB has been following Smart Study v. Happy Party-001, a Chinese counterfeiting case in the Southern District of New York, since Judge Gregory Woods issued his thoughtful opinion last summer concluding that service by email on Chinese defendants is not permitted by the Hague Service Convention (a decision we covered in a prior blog post)….
Continue ReadingDear Justice Gorsuch: There’s No Reason to Worry About the Remand in Halkbank
In Turkiye Halk Bankasi A.S. v. United States (Halkbank), the Supreme Court held that the Foreign Sovereign Immunities Act (FSIA) does not apply to criminal proceedings. The Court remanded the case to the Second Circuit to reconsider Halkbank’s claim of common law immunity. Justice Gorsuch, joined by Justice Alito, wrote a partial dissent. He would…
Continue ReadingIf Not Here, Where? Transnational Litigation Against U.S. Tech Companies Around the World
As U.S. courts have narrowed their amenability to transnational litigation, foreign courts have emerged as forums for such litigation. This is strikingly clear in suits against U.S. tech companies, which often cannot be sued at home because of Section 230 immunity. In suits around the world against U.S. tech giants, foreign courts are adapting concepts…
Continue ReadingSupreme Court Oral Argument in Extraterritorial RICO Case Marked by Confusion
The Supreme Court heard oral argument last week in Yegiazaryan v. Smagin and CMB Monaco v. Smagin, two cases testing when civil RICO can be used to help enforce a foreign arbitration award. Because I have described the facts in a previous post, I will be brief here. Smagin and Yegiazaryan are Russian citizens who…
Continue ReadingChina’s Draft Law on Foreign State Immunity—Part II
In December 2022, Chinese lawmakers published a draft law on foreign state immunity, an English translation of which is now available. In a prior post, I looked at the draft law’s provisions on immunity from suit. I explained that the law would adopt the restrictive theory of foreign state immunity, bringing China’s position into alignment…
Continue ReadingClimate Change Decision Points to the World’s Courts
Earlier this year, the Supreme Court of Hawaii issued a major decision about climate change. The case related to a request that the state Public Utilities Commission (PUC) approve a biomass power plant that purportedly would have had negative environmental effects. The PUC denied approval and the Supreme Court affirmed, announcing that the state constitution’s…
Continue ReadingThe Need for Greater Immunity from Execution for Central Banks: The Case of Da Afghanistan Bank
Central banks play a crucial role in the global economy. They are responsible for managing monetary policy, regulating financial institutions, maintaining financial stability, and ensuring that a country’s monetary policy aligns with its economic goals. Because of their essential role in the economy, and the sovereign functions that they perform, central banks should have a…
Continue ReadingMicrosoft and Contractual Ambiguity
Microsoft Corporation (Microsoft) has a market capitalization of $2.14 trillion. It reported $204 billion in revenue in 2022. Its legal team is reportedly comprised of 1,500 people worldwide. Microsoft is the proverbial 800-pound gorilla in contract negotiations. A recent case suggests, however, that Microsoft has yet to master the art of drafting a forum selection…
Continue ReadingOpen Questions after Halkbank
The Supreme Court held this week in Türkiye Halk Bankasi, A.S. v. United States that the Foreign Sovereign Immunities Act (FSIA) does not apply to criminal prosecutions. That holding was a blow to Halkbank—a foreign state-owned enterprise under indictment—which had argued that the FSIA provided it with immunity. But the case is not over. The…
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