T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T E M I L A L P E R I N ; e t a l., P l ai n t i ffs - A p p el l an t s, v. V A T I C A N B A N K , a kaI ns t i tut e of R el i gi ou s W orks aka I nst i tut o p erl e O pere D i R el i gi on e ( IO R ), D ef

endant- A pp el l ee . N o. 08- 16060 D . C . N o . 9 9 - c v - 0 4 9 4 1 - MMC ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o rth e rn D is tr ic t o f C a lif o rn ia M a xi ne M . C he s ne y , D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d D e c e m be r10, 2009 S a n F r a n c is c o , C a lif

o rn ia B efo re: B . F L E T C H E R , T H O M A S an d N . R . S M IT H , C i rcu i tJu d g es. S urvi vo rs and d es ce nd ant s of vi ct i m s of the H ol ocaust , and ass oci at ed or ga ni z a t i ons ( c ol l e c t i ve l y r e f e rr e d t o he r e i n a s “ A l pe r i n” ) , appe a l the di s m i s s a l of th e irp u rp o rte d c la s s a c tio n la w s u it a g a in s t th e V a tic a n B a n k , a ls o k n o w n b y its 

# FI LED DE C 29 2009 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

o f f ic ia l title I s titu to p e rle O p e r e d i R e lig io n e ( th e “I O R ” ) . O n ap r e v io u s ap p e a l, w e he l d tha tthe pol i t i c a l que s t i on doc tr i ne ba rr e d br oa d a l l e ga t i ons of vi ol a t i on of in te rn a tio n a l la w b u t d id n o t b a rc e rta in p r o p e rty c la im s . A l pe r i n v . V

at i c an B ank , 410 F . 3d 532 ( 9th C i r . 2005) . W e a r e now a s ke d w he the rthe I O R i s af or e i gn s o v e r e ig n p r o te c te d b y th e F o r e ig n S o v e r e ig n I m m u n ity A c t ( th e “F S I A ” ) , a n d if s o, w he the rA l pe r i n’ s c l a i m s f a l l w i thi n the i nt e rna t i ona l t a ki ngs e xc e pt i on or c om m e r c i a l t a ki ngs e xc e pt i on t o the F S I A ’ s j ur i s di c t i ona l ba r . W e ha ve j u r i s d i c t i o n u n d e r2 8 U . S. C. § 1 2 9 1 , a n d w e a f f i rm.

“ T he exi st ence of sovere i gn i m m un i ty and subj ec tm att erj uri sdi ct i on un der the [F S IA ] ar e quest i on s of l aw that[thi s C ou rt ] re vi ew [s ] de no vo . ” A f -Cap , Inc. v . Che v r on O v e rs e as (

C ongo) L td. , 475 F . 3d 1080, 1085–86 ( 9th C i r . 2007) (i nt ernal qu ot at i on m arks and ci t at i on om i tt ed) ( al t er at i on i n o ri gi nal ). A D i stri ct C ourt ’ s i nt e rpr e t a t i on of f or e i gn l a w i s a l s o r e vi e w e d de no vo . Br a d y v . Br o wn , 51 F .3 d 8 1 0 , 8 1 6 ( 9 th C ir . 1 9 9 5 ) . O n am o tio n to d is m is s , th e c o u rt “a s s u m e [ s ] th a t [ it has] truthful fa ctual al l egat i on s bef ore [ i t ] . ” SaudiA r abi a v . N e l s on , 507 U . S . 349, 351 ( 1993) . “ T o s urvi ve am ot i on t o di s m i s s , ac om pl a i ntm us tc ont a i n s uf f i c i e nt f a c tu a l m a tte r , a c c e p te d a s tru e , to ‘s ta te ac la im to r e lie f th a t is p lau s ib le o n its fa ce . ’ ” A s hc r of

t v . I qbal , __ U . S . __, 129 S . C t . 1937, 1949 ( 2009) ( quot i ng B e ll A tl. C o r

p . v . T w o m b ly , 55 0 U . S . 54 4, 57 0 (20 07 )) .3 I T he di s tr i c tc ourtdi d note rri n hol di ng tha tthe I O R i s a n or ga n of af or e i gn st at e en t i t l ed t o F S IA i m m u n i ty. In assessi n g w h eth er an en t i ty i s a n o r g a n o f

af o r e ig n s ta te , se e 28 U . S . C . § 1603( b) ( 2) , w e “[ t]a k [ e ] ah o lis tic v ie w ” o f th e d e f e n d a n t, C al . D e

p’ t of W ate rR e s . v . P ow e r ex C or p. , 533 F . 3d 1087, 1102 ( 9th C i r . 2008) . I n doi ng s o, w e e xa m i ne

“ [1 ] th e ci rcu m st an ces su rro u n d i n g th e en t i ty’ s creat i o n , [2 ] th e p u rp o se of i t s a ct i vi t i es , [3] i t s i nd ependence fr om the go vernm ent , [4] the l evel o f g o v e rn m e n t f

in a n c ia l s u p p o rt, [ 5 ] its e m p lo y m e n t p o lic ie s , a n d [ 6 ] its obl i ga t i ons a nd pr i vi l e ge s unde rs t a t e l a w . A n e nt i ty m a y be a n or ga n of af orei g n st at e e ve n i f

i tha s s om e aut onom y f r om the f

or e i gn g o v e rn m e n t.” P ow er ex , 533 F . 3d a t1098 ( quot i ng E I EG uam C or

p. v . L ong T

e rm Cr e di t

B ank of J apan, L td. , 3 2 2 F .3 d 6 3 5 , 6 4 0 ( 9 th C ir . 2 0 0 3 ) ) ( in te rn a l q u o ta tio n m a rk s o m itte d ) . A s h o w in g o f

o r g a n s ta tu s m a y b e b a s e d e x c lu s iv e ly o n f o r e ig n la w . See, e . g. G ate s v . V

i c torFi ne Foods , 54 F . 3d 1457, 1460–64 ( 9th C i r . 1995) ( us i ng A lb e rtas ta tu te s a n d r e g u la tio n to d e te rm in e d e f e n d a n t’s o r g a n s ta tu s ) . B utse e E O TT E ne r gy O pe r at i ng L td. P ’s hi

p v . W i nte r thurSw is s I

ns . C o. , 257 F . 3d 992, 9 9 9 (9 th C ir. 2 0 0 1 ) ( re m an d in g fo r “fa ctu al in q u iry” w h er e r ec o rd “i n co m p lete[]” a nd c ont a i ne d “ a m bi gui t i e s ” ) . T he de f e nda ntbe a r s the bur de n of e s t abl i s hi ng a4

p r im af a c ie c a s e o f

im m u n ity . P h a n e u

f v . R e p u b lic o f I n do n e s ia , 106 F . 3d 302, 30 6 (9th C i r. 19 97 ). T hrou gh i t s a ff

i davi tshow i ng i t s s t atus, structure, and rol e und erV at i can l a w , the I O R m a de apr i m af a c i e c a s e tha ti ti s a n a ge nc y ori ns trum e nt a l i ty of the V at i can, and thu s e nt i t l ed t o F S IA i m m un i ty. T he af fi davi tshow s thatthe m od ern I O R w a s c r e a te d b y th e P o p e a s ap u b lic a n d in d e p e n d e n t ju r id ic e n tity th a t is r e s pons i bl e f

orm a na gi ng a s s e t s pl a c e d i n i t s c a r e f orthe purpos e of

s upport i ng r e lig io u s o rc h a r itab le w o rk s . T h e h ig h e s t a d m in is tr a tiv e le v e l o f th e I O R is c om pos e d of

hi gh- r a nki ng gove rnm e ntof f i c i a l s a l l appoi nt e d by the V a t i c a n. T he IO R has e xcl usi ve control ov erse vera l ob l i gat i on s c re at ed and ass i gn ed by V at i can la w . Se e Ke l l

y v . S y r i a Sh e l l

Pe tr o le u m D e v . B. V. , 21 3 F . 3d 84 1, 84 8 (9th C i r. 2 0 0 0 ) ( e m p h a s iz in g m o n o p o ly o v e rta s k ) ; C or por ac i on Mex i c ana de Se r v i c i os M ari t i m os, S. A . de C . V

. v. M / T R es pect , 8 9 F .3 d 6 5 0 , 6 5 5 ( 9 th C ir . 1 9 9 6 ) ( s a m e ) . A nd the I O R i s i m m une f r om s ui ti n I t a l y a s af

or e i gn s ove r e i gn. A l pe r i n di d not chal l enge the af

fi davi tor prov i de a c ou nt er -a ff i davi t . T here fore , w e c on cl ud e that th e d is tr ic t c o u rt c o rr e c tly h e ld th a t th e I O R e s tab lis h e d ap r im af a c ie c a s e th a t it w as an o rg an o f a fo rei g n st at e en t i t l ed t o F S IA i m m u n i ty. C ontr a ry t o A l pe r i n’ s a r gum e nt , the hi s t or i c a l or i gi ns a nd a c t i vi t i e s of the I O R a r e n o t r e le v a n t to th is in q u iry . D ole Food C o. v . P atr i c k s on, 538 U . S . 468,5

480 ( 2003) ( “ [ I ] ns trum e nt a l i ty s t a tus i s de t e rm i ne d a tthe t i m e of the f i l i ng of the c om pl a i nt . ” ) . A c c or di ngl y , thi s c ourtha s notc ons i de r e d e vi de nc e pe rt a i ni ng t o the I OR ’ s o r g a n s t a tu s p r i o rt o 1 9 9 9 , wh e n th e f i r s tC o m p l a i n twa s f

i l e d . T h e I OR n e e d n o t b e th e V a tic a n C e n tr a l B a n kf o rit to h a v e ap u b lic p u rp o s e . See P ow er ex , 5 3 3 F .3 d a t 1 0 9 8 . I ts in v o lv e m e n t in c o m m e r c ia l a f f a ir s d o e s n o t au to m a tic a lly r e n d e rth e I O R n o n - g o v e rn m e n ta l. E I EG uam , 3 2 2 F .3 d a t 6 4 1 . N o ris it n e c e s s a ry th a t th e V a tic a n m a in ta in d a y - to - d a y c o n tr o l o v e rth e I O R ’s a c tiv itie s . G at es , 54 F . 3d a t1461. N otw i ths t a ndi ng the I O R ' s c om m e r c i a l a c t i vi t i e s a nd a rm s - le n g th s u p e rv is io n b y th e V a tic a n , th e r e c o r d , v ie w e d h o lis tic a lly , s u p p o rts the di s tr i c tc ourt ' s c onc l us i on tha tthe I O R i s a n a ge nc y ori ns trum e nt a l i ty of the V a t i c a n. I I T he di s tr i c tc ourtdi d note rri n hol di ng tha tthe i nt e rna t i ona l t a ki ngs e xc e pt i on doe s notappl y t o r e m ove F S I A i m m uni ty . W he r e the de f e nda nt s ove r e i gn s uc c e e ds i n “ e s t abl i s h[ i ng] apr i m af a c i e c a s e of

i m m uni ty , the bur de n of prod uct i on shi ft s t o the pl ai nt i ff t o o ff erevi dence thatan except i on appl i es . ” P hane uf , 106 F . 3d a t307. F S I A ’s in te rn a tio n a l ta k in g e x c e p tio n p r o v id e s th a t:6

A f o r e ig n s ta te s h a ll n o t b e im m u n e f r o m t h e j u r is d ic tio n o f

th e c o u rts o f th e U n i t ed S t at es . . . i n an y case . . . (3 ) i n w h i ch ri g h t s i n p r o p e r ty ta k e n in v io la tio n o f

in te rn a tio n a l la w ar e in is s u e a n d [ 1 ] th a t p r o p e rty or any property e xchang ed for s uch p rope rty i s pre se nti n the U ni t ed S t at es i n conn ec t i on w i th a com m er ci al ac t i vi ty c arri ed on i n the U ni t ed S ta te s b y th e f

o r e ig n s ta te ; o r[ 2 ] th a t p r o p e rty o ra n y p r o p e rty e x c h a n g e d f

o r s u c h p r o p e rty i s o w n e d o r o p e r a t e d b y a n a ge nc y or in s tru m e n ta lity o f

th e f o r e ig n s ta te a n d th a t a g e n c y o rin s tru m e n ta lity is en g ag ed i n a co m m erci al act i v i ty i n th e U n i t ed S t at es. 2 8 U .S .C . § 1 6 0 5 ( a ) . O f c ri t i ca l i m po rt ance t o any anal ys i s und erthi s e xcept i on i s thatpl ai nt i ff s notonl y m us tpl e a d ar i ghtt o pr ope rty t a ke n i n vi ol a t i on of i nt e rna t i ona l l a w — a nd w e d o n o treach th e q u est i o n o f w h eth er th ey h av e i n th i s case— b u tth atth ey m u st pl e a d aj ur i s di c t i ona l ne xus t o the U ni t e d S t a t e s . U nde re i the rpr ong of § 1605( a ) ( 3) , thi s i nvol ve s pl e a di ng the c urr e nts t a tus of the pr ope rty a ti s s ue ( or any property e xchang ed for s uch p roperty)

— thati tei ther is pres enti n the U ni t ed S t at es or is ow ned o r operat ed by an agency or i nstrum ent al i ty of the forei gn st at e. W h ile w e r e c o g n iz e th a t it c o u ld b e d if f ic u lt to p r o v e th a t af

u n g ib le a rtic le s uc h a s the gol d a l l e ge d t o ha ve be e n t a ke n i n thi s c a s e i s c urr e nt l y pr e s e nti n the U n ite d S ta te s , A lp e r in d id n o t e v e n m a k e s u c h a n a lle g a tio n in th e p le a d in g s . T here fore , as sum i ng w i tho utdeci di ng thatpl ai nt i ff s m aym ee tthei r burden u nd er the f i r s tpr ong thr ough pl e a di ngs aboutthe c om m e r c i a l a c t i vi t i e s of a n a ge nc y or i nstrum ent al i ty of afore i gn st at e r ather than the forei gn st at e i t se l f, A l peri n fai l ed7

to d o s o in th is c a s e . C

f . G ar b v . R e

publ i c of P oland , 440 F . 3d 579 ( 2d C i r . 2006) ( hol di ng tha tonl y the f

i r s tc l aus e of

the t a ki ngs e xc e pt i on appl i e s w he r e the j ur i s di c t i ona l ne xus i s ba s e d on a l l e ga t i ons r e ga r di ng the c om m e r c i a l a c t i vi ty of the M i ni s try of

the T r e a s ury , s i nc e the M i ni s try i s the s t a t e i t s e l f , nota n a ge nc y or in s tru m e n ta lity ) . B utse e 2 8 U .S .C . § 1 6 0 3 ( a ) ( “A ‘f o r e ig n s ta te ’ . . . in c lu d e s . . . an agency or i nstrum ent al i ty of afore i gn st at e . . . . ”) . N or, un der the se cond pron g o f § 16 05 (a )( 3), di d A l peri n suffi ci ent l y pl ea d th a t th e I O R h a s c u rr e n t o w n e r s h ip o f th e e x p r o p r ia te d p r o p e rty o rp r o p e rty ex ch an g ed fo r ex p ro p ri at ed p ro p erty. A tm o st , A l p eri n assert ed th at“ d efen d an t s” (i n th i s m u l t i -d efen d an tcase) “ret ai n ed ” so m e p o rt i o n o f th e U st ash a T reasu ry, a f t e rothe rport i ons w e r e l aunde r e d i n the 1940s . T he y ne ve ra l l e ge tha tthe e x p r o p r ia te d p r o p e rty “r e ta in e d ” b y th e d e f e n d a n ts in c lu d e s p r o p e rty th a t p r o p e r ly bel on gs t o the nam ed pl ai nt i ff s. T hi s i s i nsuffi ci entw here the F S IA re qu i re s pr e s e ntow ne r s hi p of

the e xpr opr i a t e d pr ope rty ( ora ny pr ope rty e xc ha nge d f or such prop erty) . II I T h e d is tr ic t c o u rt a ls o d id n o t e rrin d e te rm in in g th a t th e c o m m e r c ia l a c tiv ity e x c e p tio n d o e s n o t r e m o v e F S I A im m u n ity in th is c a s e . A s e c o n de x c e p tio n to F S IA i s f or ca se s “ i n w hi ch the ac t i on i s bas ed up on a c om m er ci al ac t i vi ty c arri ed8

on i n the U ni t e d S t a t e s by the f or e i gn s t a t e ” orba s e d “ upon a n a c tout s i de the t e rr i t ory of

the U ni t e d S t a t e s i n c onne c t i on w i th ac om m e r c i a l a c t i vi ty of the f or e i gn s t a t e e l s e w he r e a nd tha ta c tc aus e s adi r e c te f f e c ti n the U ni t e d S t a t e s . ” 28 U .S .C . § 1 6 0 5 ( a ) ( 2 ) . N or do es A l peri n’ s c om pl ai ntm ee tei ther prong of the com m er ci al ac t i vi t i es e xc e pt i on. P l a i nt i f

f s a l l e ge tha tadi f

f e r e ntde f e nda ntus e d f

unds l aunde r e d by the I O R t o e s t abl i s h publ i s hi ng hous e s a nd othe rc om m e r c i a l a c t i vi t i e s i n C hi c a go, a nd th e y a r g u e th a t th e I O R w a s e n ab le d to s to r e g o ld in th e U n ite d S ta te s a n d tr a d e it o n U .S . m a rk e ts b e c au s e its g o ld c o lle c tio n w a s e n h a n c e d b y th e U s ta s h aT r e a s u ry . T hese al l eged com m er ci al ac t i vi t i es i n the U ni t ed S t at es ar e t oo t angent i al l y r el at ed t o thei r l egal cl ai m s t o b e c on si dere d “ the basi s f or [the] sui t . ” N

e l s on , 50 7 U . S . at 3 5 8 ; s e e a ls o A lde rv . Fe d ’ l R e p u b lic o f N ig e r ia , 21 9 F . 3d 86 9, 87 4– 75 (9th C i r. 2000) ( a na l y z i ng c l a i m ba s e d on m one y - l aunde r i ng unde rdi r e c te f f e c t s pr ong onl y ) . N ora r e the e f

f e c t s tha tA l pe r i n a l l e ge s — the c um ul a t i ve i m pa c tof U s t a s ha go l d o n the IO R ’ s hol di ng s and on i t s c om m er ci al ac t i vi t i es i n the U ni t ed S t at es ov era dec ade l at er ; and the re sul t s of ano ther party a l l egedl y i nv es t i ng l aund er ed f u n d s in C h ic a g o — s u f

f ic ie n tly d ir e c t to f

a ll w ith in th is e x c e p tio n . See C orzo v. B a n co C en t . de R eserva del P eru , 24 3 F . 3d 51 9, 52 5 (9th C i r. 20 01 ) ( ho l di ng that

“ se cond ary or i nci dent al re sul t s” do no tcoun tun der di re ctef fe ct s prong ).9 I V T he di s tr i c tc ourtc orr e c t l y di s m i s s e d the c om pl a i nt . G i ve n ourr e a s oni ng, w e ne e d not–a nd do not–r e a c h a ny othe ri s s ue r a i s e d by the pa rt i e s . A l l m ot i ons for j ud i ci al no t i ce fi l ed by bo th p art i es ar e D EN I ED . AF F I RME D.