42–2. Sovereign Immunity. Taconic Plastics, Ltd., is a manu-facturer incorporate

Question

42–2. Sovereign Immunity. Taconic Plastics, Ltd., is a manu-facturer incorporated in Ireland with its principal place of business in New York. Taconic enters into a contract with a German firm, Werner Voss Architects and Engineers, acting as an agent for the government of Saudi Arabia, to supply special material for a tent project designed to shelter reli-gious pilgrims visiting holy sites in Saudi Arabia. Most of the material is made in, and shipped from, New York. The German company does not pay Taconic and files for bank-ruptcy. Taconic files a suit in a U.S. court against the gov-ernment of Saudi Arabia, seeking to collect $3 million. The defendant files a motion to dismiss the suit based on the doctrine of sovereign immunity. Under what circumstances does this doctrine apply? What are its exceptions? Should this suit be dismissed? Explain. (See International Principles and Doctrines .)

Explanation / Answer

The foreign sovereign immunity act is a United States law codified in the united states code,that establishes the limitations as to whether a foreign sovereign nation may be suit in US court.Govern immunity in domestic court is known as sovereign immunity.

The doctroin of foreign immunity applies If a foreign defendant qualifies as a foreign state under the FSIA.The act provides that it should be immune to suit in any US court-federal or state ,unless a statutory exception to immunity applies.

The exceptions to the doctroin is when a nation has waved its immunity or if the action against it is based on a commercial activity carried on in the united states.

The suit should be denied to be dismissed by the the court.because of the exception of commercial activity as most of the materials are made in and shipped from New York.

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