Opinion ID: 795095
Heading Depth: 2
Heading Rank: 2

Heading: FG Hemisphere I: Findings Necessary Under the FSIA

Text: 58 In FG Hemisphere I, the Congo Defendants argue that the district court erred in determining that the FSIA's general rule of immunity does not apply to the royalty obligations without first conducting an analysis of whether these obligations were in the United States. 59 Unlike the initial order that authorized execution against the Congo's royalty interests, the district court's October 22, 2004 order included factual findings and legal conclusions that (1) the Congo waived its immunity to attachment and execution of judgment as to the Congo property and rights to royalties owed by or in possession of the Garnishees; (2) the Garnishees owe certain royalty obligations to the Congo; (3) these royalty obligations are property of the Congo in the United States; and (4) these royalty obligations have been used for commercial activity in the United States. 60 The district court must apply the FSIA in each action against a foreign sovereign because the court's subject-matter jurisdiction in any such action depends on the existence of one of the specified exceptions to foreign sovereign immunity. Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 434-35, 109 S.Ct. 683, 102 L.Ed.2d 818 (1989). In FG Hemisphere I, this means that there must be a determination that the obligation to pay the royalty interest conforms to the two § 1610(a) requirements before the district court has subject matter jurisdiction. These two requirements cannot be waived because they are jurisdictional. See Republic of Austria, 541 U.S. at 688-89, 700, 124 S.Ct. 2240 (discussing the development of foreign sovereign immunity law and noting that a claim of sovereign immunity raises a jurisdictional defense); Schooner Exch. v. McFaddon, 7 Cranch 116, 11 U.S. 116, 135, 3 L.Ed. 287 (1812); (holding that American courts had no jurisdiction over an armed French vessel found in United States waters); Verlinden B.V. v. Cent. Bank of Nig., 461 U.S. 480, 485 n. 5, 103 S.Ct. 1962, 76 L.Ed.2d 81 (1983) (indicating that subject matter jurisdiction and personal jurisdiction each turn on application of the substantive provisions of the FSIA). 61 No court in the United States has jurisdiction to execute against a foreign sovereign's property until these determinations are made. Accordingly, we find that the district court erred when it authorized issuance of the October 2004 writs without first determining that an exception to the FSIA immunity applied to the property executed against. The result of that error is that the district court had no jurisdiction to enter that order. This kind of error cannot be cured by subsequent modification because the order was void ab initio. Accordingly, we vacate the October 2004 orders that authorize execution against the Congo's interest in royalties. 62