2. Bank of Jamaica is wholly owned by the government of Jamaica. Chisholm & Co.
ID: 364769 • Letter: 2
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2. Bank of Jamaica is wholly owned by the government of Jamaica. Chisholm & Co. was a Florida corporation owned by James Henry Chisholm, a Florida resident. The U.S. Export-Import Bank (Ex-Im Bank) provides financial services and credit insurance to export and import companies. Bank of Jamaica and Chisholm & Co. agreed that Chisholm & Co. would arrange lines of credit from various banks and procure $50 million of credit insurance from Ex-Im Bank to be available to aid Jamaican importers. Chisholm & Co. was to be paid commissions for its services. Chisholm & Co. negotiated and arranged for $50 million of credit insurance from Ex-Im Bank and lines of credit from Florida National Bank, Bankers Trust Company, and Irving Trust Company. Chisholm also arranged meetings between Bank of Jamaica and the U.S. banks. Unbeknownst to Chisholm & Co., Bank of Jamaica went directly to Ex-Im Bank to exclude Chisholm & Co. from the Jamaica program and requested that the credit insurance be issued solely in the name of the Bank of Jamaica. As a result, Chisholm & Co.'s Ex-lm Bank insurance application was not considered. Bank of Jamaica also obtained lines of credit from other companies and paid commissions to them. Chisholm & Co. sued Bank of Jamaica in U.S. District Court in Miami, Florida, alleging breach of contract and seeking damages. Bank of Jamaica filed a motion to dismiss the complaint, alleging that its actions were protected by sovereign immunity 1. What does the doctrine of sovereign immunity provide? 2. Did Bank of Jamaica act ethically in trying to avoid its contract obligations owed to Chisholm & Co.? 3. Who wins, and why?Explanation / Answer
1)sovereign immunity is a legal doctrine according to which king or goverment body can not do wrong act therefore they have immunity & they can not be sued or criminal prosecution because of availability of immunity.
Therefore bank of jamaica is govt body it can not be sued for any criminal prosecution because of sovereign immunity .
2)No,bank of jamaica is definately do wrong it avoid its contract with chisolm and co.and it misuse the sovereign immunity being a govt body.
3)Bank of jamaica wins being wrong because of presence of sovereign immunity to it and being right chisolm &co lost the case.Bank of jamaica act negatively , misuse its power and did wrong act with chisolm &co.
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