Opinion ID: 169915
Heading Depth: 3
Heading Rank: 2

Heading: facts

Text: For most of the time since the United States' inception, foreign sovereigns have enjoyed almost complete immunity from suit in American courts. See Republic of Austria v. Altmann, 541 U.S. 677, 688-89, 124 S.Ct. 2240, 159 L.Ed.2d 1 (2004); Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 434 n. 1, 109 S.Ct. 683, 102 L.Ed.2d 818 (1989); Verlinden B.V. v. Cent. Bank of Nigeria, 461 U.S. 480, 486, 103 S.Ct. 1962, 76 L.Ed.2d 81 (1983). In 1952, however, the State Department adopted a more `restrictive' theory of foreign sovereign immunity. Verlinden, 461 U.S. at 486-87, 103 S.Ct. 1962; see also Altmann, 541 U.S. at 689-90, 124 S.Ct. 2240. Under this restrictive theory, foreign sovereigns still enjoyed immunity for public or sovereign acts, but they no longer had unqualified immunity for private or commercial activity. See Verlinden, 461 U.S. at 487, 103 S.Ct. 1962; see also Altmann, 541 U.S. at 690, 124 S.Ct. 2240; Saudi Arabia v. Nelson, 507 U.S. 349, 359-60, 113 S.Ct. 1471, 123 L.Ed.2d 47 (1993). Congress codified this restrictive theory when it enacted the FSIA in 1976. See Permanent Mission of India to the United Nations v. City of New York, ___ U.S. ___, 127 S.Ct. 2352, 2357, 168 L.Ed.2d 85 (2007). The FSIA provides the sole source of American courts' subject matter jurisdiction over a foreign sovereign. See Amerada Hess Shipping Corp., 488 U.S. at 435, 439, 443, 109 S.Ct. 683; see also Permanent Mission of India, 127 S.Ct. at 2355, 127 S.Ct. 2352; Nelson, 507 U.S. at 355, 113 S.Ct. 1471. A foreign state is still presumptively immune from suit. See 28 U.S.C. § 1604; see also Permanent Mission of India, 127 S.Ct. at 2355, 127 S.Ct. 2352; Nelson, 507 U.S. at 355, 113 S.Ct. 1471. But the FSIA carves out certain exceptions to its general grant of immunity. Altmann, 541 U.S. at 691, 124 S.Ct. 2240. These exceptions are central to the Act's functioning: `At the threshold of every action in a district court against a foreign state, . . . the court must satisfy itself that one of the exceptions applies,' as `subject-matter jurisdiction in any such action depends' on that application. Id. (quoting Verlinden, 461 U.S. at 493-94, 103 S.Ct. 1962); see also Amerada Hess Shipping, 488 U.S. at 434-35, 109 S.Ct. 683. In considering whether a foreign sovereign is immune from suit in the United States under the FSIA, courts employ a burden-shifting analysis. See Southway, 328 F.3d at 1271. The defendant must first establish a prima facie case that it is a sovereign state, creating a rebuttable presumption of immunity. See Cruz v. United States, 387 F.Supp.2d 1057, 1062 (N.D.Cal. 2005). Once the foreign sovereign makes that prima facie showing of immunity, the plaintiff has the burden of production to make an initial showing that an FSIA exception to foreign immunity applies. See Southway, 328 F.3d at 1271; see also Cargill Int'l S.A. v. M/T Pavel Dybenko, 991 F.2d 1012, 1016 (2d Cir.1993). If the plaintiff makes such a showing implicating an exception, then the foreign sovereign bears the ultimate burden of proving, by a preponderance of the evidence, that the exception does not apply in that case. Southway, 328 F.3d at 1271.