Document: 507 U.S. 349 113 S.Ct. 1471 123 L.Ed.2d 47 SAUDI ARABIA, King Faisal Specialist Hospital and Royspec, Petitionersv.Scott NELSON et ux. No. 91-522. Argued Nov. 30, 1992. Decided March 23, 1993. Syllabus * The respondents Nelson, a married couple, filed this action for damages against petitioners, the Kingdom of Saudi Arabia, hospital, hospital's purchasing agent in United States. They alleged, among other things, that respondent husband suffered personal injuries as result Government's unlawful detention torture him petitioners' negligent failure to warn possibility severe retaliatory if he attempted report on-the-job hazards. Nelsons asserted jurisdiction under Foreign Sovereign Immunities Act 1976, 28 U.S.C. § 1605(a)(2), which confers where an is "based upon commercial activity carried on States by foreign state." District Court dismissed lack subject-matter jurisdiction. Appeals reversed, concluding husband's recruitment hiring were "commercial activities" Nelsons' was "based" purposes 1605(a)(2). Held: not activity" within meaning first clause therefore no over their suit. Pp. ____. (a) This upon" activity. Although does define upon," phrase most naturally read mean those elements claim that, proven, would entitle plaintiff relief his theory case, statutory context confirms requires something more than mere connection with, or relation to, Even taking allegations about employment true, facts alone nothing case. While these arguably activities may have led commission torts allegedly injured Nelsons, it only Act. (b) Petitioners' tortious conduct fails qualify has ruled largely codifies so-called "restrictive" sovereign immunity, Republic Argentina v. Weltover, Inc., 504 ----, 112 2160, 2165, 119 394, state engages exercises powers can also be exercised private citizens, rather peculiar sovereigns, id., at ----. intentional alleged here (the wrongful arrest, imprisonment, Nelson) boils down abuse power police. However monstrous such undoubtedly be, state's exercise long been understood restrictive peculiarly nature. argument mistreatment constituted retaliation reporting safety violations, character, alter fact abused police penal officers. In any event, goes purpose conduct, explicitly renders irrelevant determination activity's character. (c) attempt merely semantic ploy. A could recast virtually tort committed act warn. To give jurisdictional significance feint language effectively thwart Act's manifest codify immunity. Cf. Shearer, 473 52, 54-55, 105 3039, 3041-3042, 87 38 (opinion Burger, C.J.). 923 F.2d 1528 (CA 11 1985), reversed. SOUTER, J., delivered opinion Court, REHNQUIST, C.J., O'CONNOR, SCALIA, THOMAS, JJ., joined, KENNEDY, joined except last paragraph Part II. WHITE, concurring judgment, BLACKMUN, joined. part dissenting part. part, BLACKMUN STEVENS, Parts I-B opinion. Everett C. Johnson, Jr., Washington, DC, petitioners. Jeffrey P. Minear, amicus curiae, special leave Court. Paul S. Stevens, respondents. Justice SOUTER 1 1976 entitles states immunity from courts States, 1604, subject certain enumerated exceptions. 1605. One shall immune case "in based We hold respondents' alleging injury resulting Government Act, consequently 2 Because comes us motion dismiss complaint, we assume truthful factual before us, see Gaubert, 499 111 1267, 335 (1991), though many are dispute. See Brief Petitioners 3, n. 3; 1, infra. Petitioner Arabia owns operates petitioner Riyadh, well Royspec Purchasing Services, Hospital's corporate App. 91. Corporation America, Ltd. (HCA), independent corporation existing laws Cayman Islands, recruits Americans agreement signed with 1973. Id., 73. 3 its effort, HCA placed advertisement trade periodical seeking applications position monitoring systems engineer Hospital. drew attention Scott Nelson September 1983, while After interviewing returned contract Hospital, 4, satisfied personnel processing requirements, attended orientation session conducted employees. course program, identified point contact family members who might wish reach emergency. 33. 4 December went began work all "facilities, equipment, utilities maintenance insure patients, hospital staff, others." 4. He did job without significant incident until 1984, when discovered defects oxygen nitrous oxide lines posed fire hazards otherwise endangered patients' lives. 57-58. Over period several months, repeatedly advised officials reported well. 4-5. instructed ignore problems. 58. 5 response Nelson's reports changed, however, 27, employees summoned security office agents arrested him.1 transported jail cell, they "shackled, tortured bea[t]" him, 5, kept four days food. 59. understand Arabic, forced sign statement written language, content know; employee supposed interpreter "anything" gave avoid further beatings. Ibid. Two later, transferred Al Sijan Prison "to await trial unknown charges." 6 At Prison, confined overcrowded cell area infested rats, had fight prisoners food taken once week fresh air exercise. interrogators questioned learn nature charges, any, him. For days, failed advise whereabouts, official eventually told wife, Vivian arrange her release she provided sexual favors. 7 Embassy visited twice during detention, concluded "not credible" made protest authorities. 64. It request Senator released 39 after November 1984. 60. Seven failing convince return allowed country. 60-61. 8 1988, wife petitioners Southern Florida injury. complaint sets out 16 causes action, fall into three categories. Counts II through VII counts X, XI, XIV, XV allege various torts, including battery, detainment, arrest false inhuman torture, disruption normal life, infliction mental anguish. 6-11, 15, 19-20. I, IX, XIII charge negligently undisclosed dangers employment, namely, likely retaliate detain physically legal cause. 5-6, 14, 18-19. Finally, VIII, XII, XVI sustained derivative actions. 11-12, 16, 20. Presumably because exclusive claims breach contract, 47, raised matters. 9 §§ 1330, 1602 seq. rejected existed, one "carried States." HCA's properly attributed reasoned, amount States" 94-95. court explained there sufficient "nexus" between alleged. "Although [the Nelsons] argu[e] but [Scott Nelson's] job, arrested, injuries," said, "this 'connection' [is] far too tenuous support jurisdiction" 97. Likewise, Royspec's supplies equipment 93-94, nexus complaint; simply way 96. 10 (CA11 1991). 1533, statute. 1533-1536. There was, acts Nelsons: "the so intertwined Hospital," explained, "that 'based upon' hiring" 1535. found hear Royspec. 1536.2 denied suggestion rehearing en banc, 133, granted certiorari, 2937, 562 (1992). now reverse. "provides sole basis obtaining country." Argentine Amerada Hess Shipping Corp., 488 428, 443, 109 683, 692, 102 818 (1989). Under presumptively courts; unless specified exception applies, federal lacks state. Verlinden B.V. Central Bank Nigeria, 461 480, 488-489, 103 1962, 1968-1969, 76 81 (1983); 1604; J. Dellapenna, Suing Governments Their Corporations 11, 64 (1988). 12 Only said apply here. 1605(a)(2) provides state."3 defines having substantial States," 1603(e), "either regular particular transaction act," character [which] determined reference to" "nature," "purpose." 1603(d). 13 dispute "foreign state[s]" Respondents 1603(a), (term state" includes "an agency instrumentality state"). therefore, must some "substantial contact" conclude suit need issue 14 begin our analysis identifying Texas Trading & Milling Corp. Federal 647 300, 308 (CA2 1981), cert. denied, 454 1148, 1012, 71 301 (1982); Donoghue, Taking "Sovereign" Out Act: Functional Approach Commercial Activity Exception, 17 Yale J.Int'l L. 489, 500 contains definition relatively sparse legislative history offers assistance, guidance hardly necessary. denoting forms "basis," "foundation," claim, Black's Law Dictionary 151 (6th ed. 1990) (defining "base"); Random House 172 (2d 1987) (same); Webster's Third New International 180, 181 (1976) "base" "based"), Callejo Bancomer, S.A., 764 1101, 1109 (CA5 1985) (focus should "gravamen complaint"); accord, Santos Compagnie Nationale Air France, 934 890, 893 (CA7 1991) ("An prove less"); Millen Industries, Inc. Coordination Council North American Affairs, 272 U.S.App.D.C. 240, 246, 855 879, 885 15 What natural suggests, confirms. Earlier, supra, noted two clauses following second allows "is . performed elsewhere," third speaks like terms, allowing outside territory elsewhere direct effect Distinctions descriptions juxtaposed each significant, Melkonyan Sullivan, 501 2157, 115 78 Congress manifestly difference with" reasonable reading former term calls activity.4 recruited subsequently employed not, all, ____, caused wrongs commit wrongs. Those preceded commission, form itself although " 'obtuse' much help reaching conclusion. Callejo, 1107 (citation omitted). seen already "[t]he act, purpose." If definition, distinguished diffidence; observed recent subject, "leaves critical 'commercial' undefined." 394 (1992); 499; Lowenfeld, Litigating Immunity Claim—The Haiti Case, 49 N.Y.U.L.Rev. 377, 435, 244 (1974) (commenting then-draft Act) ("Start 'activity,' proceed via 'conduct' 'transaction' 'character,' then refer 'nature,' go back 'commercial,' you started place"); G. Born D. Westin, Civil Litigation Courts 479-480 1992). do option throw up hands. given interpretation, congressional diffidence necessarily results judicial responsibility determine what 18 took task just Term involved Argentina's unilateral refinancing bonds issued plan stabilize currency. Bondholders sued court, asserting holding statute "largely 'restrictive' endorsed State Department 1952." U.S., S.Ct., 2165. accordingly held "commercial" require time passed 19 restrictive, opposed "absolute," public (jure imperii ), gestionis ). 487, 1968; Alfred Dunhill London, Cuba, 425 682, 698, 96 1854, 1863, 48 (plurality opinion); 1602; Dunhill, 711, 1869 (Appendix Opinion Court) (Letter Attorney General Jack B. Tate, Acting Legal Adviser, Dept. State, May 19, 1952); Hill, Policy Analysis Immunity, 50 Ford.L.Rev. 155, 168 (1981). 2166 (quoting 704, 1866), 'only citizens,' distinct 'powers sovereigns.' Put differently, manner player within" market. 2166; Restatement (Third) Relations 451 (1987) ("Under international law, another state, respect arising kind persons"). 20 emphasized Weltover whether of" party question behavior, motivation: 21 "[B]ecause 'nature' 'purpose,' government acting profit motive instead aim fulfilling uniquely objectives. Rather, actions performs (whatever behind them) type 'trade traffic commerce.' (citations omitted) (emphasis original). 22 difficulty distinguishing 'purpose' (i.e., reason why activity) outward agrees perform)," recognized "unmistakably commands" observe distinction. 2167 dealt bond market player, held, qualified despite apparent governmental motivation. 23 Unlike considered theory. Government, however Arango Guzman Travel Advisors 621 1371, 1379 1980); Victory Transport Comisaria de Abastecimientos y Transportes, 336 354, 360 1964) (restrictive extend "internal administrative acts"), 381 934, 85 1763, 698 (1965); Herbage Meese, 747 F.Supp. 60, 67 (DC 1990), affirmance order, 292 84, 946 1564; K. Randall, Human Rights Paradigm 93 (1990) commercial-activity cases violated human rights).5 Exercise officers sort parties engage commerce. "[S]uch legislation, expulsion alien, denial justice, cannot individual own name. such." Lauterpacht, Problem Jurisdictional Brit.Y.B.Int'l 220, 225 (1952); 237. 24 amici urge assertion subjected persistence argue commercial. amicus, indeed, suggest "often uses resolve disputes." Watch Amicus Curiae 6. But off point, purpose, very Whatever motivation abusive treatment remains 25 addition intentionally separate recovery hidden associated employment. thereafter, disclose discover job. words, bore duty propensity conduct. aught see, warn, charging defendant obligation announce indulging it. ,S.Ct. (1985) III 26 judgment 27 ordered. whom joins, judgment. 29 According employer retaliated problems "summon[ing him] cell." 5. Once there, beaten persons direction, instigation, provocation, instruction petitioners—Saudi 18. majority concludes enjoy activity." I disagree. nonetheless concur my view base 30 A. 31 As notes, step identify based. pointed possibilities. first, seemingly pressed appeal, consists recruiting Appellant 12-15. "commercial," agree suit," ante, unrelated complaint. 32 partial change course, both brief oral focus practices disciplinary procedures. view, order establish 22, 24-25, 31; Tr. Oral Arg. 44-45. never reaches stage, finding commerce." Ante, means ought commerce, wholeheartedly agree. That, relevant inquiry. ask times B 33 run operate even enterprise. concedes deny either, mind matter self-evident. By same token, warning blows whistle harassment, involuntary transfer, discharge, prototypical acts, certainly bounds Senate Reports accompanying legislation compel conclusion, explaining "a government's engagement laborers, clerical staff marketing included H.R.Rep. 94-1487, p. (House Report); S.R.Rep. 94-1310, (Senate Report), U.S.Code Cong. Admin.News pp. 6604, 6615. alleges harmed engaging enterprise, acts. His 34 Indeed, am somewhat loss exactly believes done not. countless attest, whistleblowing practice marketplace.1 Whistleblower Protection 1989, 1213 (1988 ed., Supp. III), numerous On occasion, employers known enlisting falsely See, e.g., Rosario Amalgamated Ladies Garment Cutters' Union, 605 1228, 1233, 1247-1248 1979), 446 919, 100 1853, 273 (1980). More generally, liable conspiring authorities effectuate Adickes S.H. Kress Co., 398 144, 90 1598, 142 (1970), using purposes. Albright Longview Police Dept., 884 835, 841-842 1989). 35 Therefore, thugs majority—no longer able describe police," ____ consent calling "commercial." For, circumstances, state-run operating participant marketplace operation Arabia's business.2 36 heart majority's chose call forces. find fixation intervention officers, ensuing characterization "peculiarly nature," misguided. begin, capture full. Far being directed solely police, concerns played subsequent beating imprisonment. 14. Without more, behavior qualifies sovereign. Thus, assuming sake role somehow affected "rest[ ] entirely character." least "consists elements," thereby presenting specific chooses elude. ibid. single-minded power, simplifying thus justice.3 37 Reliance enlisted odds Congress' intent. prevent refuge sovereignty participants, seems me precisely distinction seek avoid. turns capacity, resorts carry business. get whistleblower, clothed apparel says state-owned enterprise noncommercial thought put rest ago when, slightly different context, Chief Marshall observed: "It is, think, sound principle, becomes partner trading company, devests itself, transactions takes citizen. Instead communicating company privileges prerogatives, descends level associates belongs associates, business transacted." Planters' Georgia, (9 Wheat.) 904, 907, L.Ed. (1824). 695-696, 1862, opinion). C 40 Contrary suggestion, conclusion involve inquiring Matters different, suppose, force and, retributive punishment, engaged distinctly activities. Report, ("Also nature, diplomatic, civil service, military personnel"); 16. true tourist summarily expelled immigration officials. 1371 1980). instance, ordinary "[i]n capacities, governments sovereigns. Instead, citizens." 1866 recently stated, "when regulator market, it, sovereign's FSIA." 2162, believe, 41 Nevertheless, 1603(e). efforts advertising media, signing Miami. 43-45. earlier noted, constitute Conversely, constituting suit, Neither practices, nor procedures, basis, grant access courts. 42 43 join WHITE's finds KENNEDY's insofar "failure warn" remanded. 44 STEVENS II, 45 Court's where, almost explanation, rules These stand footing (FSIA). remanded consideration. 46 wrongdoing sovereign, commercial, activity, contained 1604. recite Mr. capacities. conducts affairs; classified them large measure swallow rule enacted FSIA. Kingdom, foreseeable such, complain Arabia; rather, omission obtain relief, obliged tell prospective Arabia. test, negligence upon." Omission important information described plain undertaken hospitals Locating implicates unique terms conditions risks rewards entity marketplace. FSIA, result, satisfy general duties care actors law. operations law risk arbitrary authorities, satisfies final requirement invoking exception: "having America wholly owned subsidiary corporation, which, years beginning 1973, acted seeks labor advertised magazine, applicants later filled. saw ad contacted Tennessee. interview Florida, underwent application Before leaving take Tennessee new States; neglected bound meets requirements exception. 51 Having met prerequisites survive Rule Procedure 12(b)(1) want Yet remanding proceedings, dismisses single short paragraph. peculiar, since suggests purport analyze light 52 summary stem doubts underlying validity cause action. fears it." "[t]o immunity." doubts, analytical hand. 53 FSIA falls exceptions listed 1605, extent circumstances." 1606. incorporates "was intended affect substantive determining liability First Nat'l City Banco Para el Comercio Exterior 462 611, 620, 2591, 2596, 77 (1983). governing yet determined, permit person plead wrong similar authority ordain suing entity. "[W]here individuals, 622, 2598, 11. 54 citation 3041, C.J.), dismissing claims. Shearer refused essentially decided doctrine Feres 340 135, 153, 95 152 (1950). creature common greater latitude make pleading current Here, interpret explicit Tort Claims 2680(h), precludes "[a]ny torts. FTCA cover sounded tort. equivalent worth noting adopted uniform barring recasting FTCA; permitted situation. Sheridan 487 392, 108 2449, 101 352 55 novel proposition play words precision recognize arise multiple causes, constitutes actionable wrong. (Second) Torts 447-449 Sheridan, 405, 2457 (KENNEDY, judgment); Wilson Garcia, 471 261, 272, 1938, 1944, 254 (1985). example, supervision forward immediate barred 400, 2454. observed, "it settled undisputed situations directly assault battery will preclude occur." 398, 56 determine, remand succeed Quite apart potential bar recovery, appear face obstacle adjudication related lawsuit agent, HCA. identical barred, merits. 88-0484-CIV-Nesbitt (SD Fla., 1990). That decision affirmed 1546 (Table), entitled preclusive defendants, whose place generally Montana 440 147, 99 970, 973, 59 210 (1979) ("a merits bars privies action"); Lawlor National Screen Service 322, 330, 75 865, 869, 1122 (1955) (defendants prior invoke res judicata "their 'altogether dependent culpability' [prior] defendants") Bigelow Old Dominion Copper Mining Smelting 111, 127, 641, 642, 1009 (1912)); Wright, Miller E. Cooper, Practice Procedure, 4463, 567 (1981) (recognizing "judgment either vicarious relationship establishe[s] preclusion favor other"); Judgments (1982). 57 preclusion, litigated proper sphere review. "[I]t reexamine [this] or, good reason, pass instance." 401, 2455. avail here; met, proceedings. conferred entertain claims, respect, dissent refusal them. 58 dissenting. (FSIA), met: States."1 separately analyzed serve excludes scope suit; identifies contacts defendant.2 60 WHITE demonstrated, petitioner's procedures statute, respondent's punished unquestionably condition satisfied; respondent. 61 convinced activities—whether defined specifically, "as responsibilities enterprise," 25—have justify maintains Maryland purchases nearly decades maintained regularly Respondent himself entered traveling program ultimately hired manager, troubleshooter, performance 62 Whether broadly authorizes "general" entities country, narrowly, "specific" States,3 are, plainly country nonimmune relating business, doubt upheld. And touchstone inquiry; explains, 2, nation sheds status benefits marketplace, must, party, bear burdens imposed affirm Appeals.4 syllabus prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. assert represented received degree Massachusetts Institute Technology forged diploma verify claim. concede misrepresentations, occasioned arrest. 9. expressly declined address doctrine, F.2d, 1536, consider full, "[a] state; elsewhere; every element elements. conclude, rests here, infra, exist regardless Department's passage supports understanding. Prior passage, instance appropriate recommendation 486-488, 1967-1968, compilation available materials demonstrates involving 1952 January 1977 (M. Sandler, Vagts, Ristau eds.), Digest 1017, 1045-1046 (claim Cuban armed guard seized cash Havana airport); 1053-1054 militia fired plaintiffs property damage). points episode Jamaican nationals, working British West Indies Labour Organization, agency. 1062-1063; post, 3. bears little nationals English Electric 496 72, 75-76, 110 2270, 2273, 65 (1990); Belline K-Mart 940 184, 186-189 1991); White Motors 908 669, 671 (CA10 498 1069, 788, 850 (1991); Sanchez Unemployment Ins. Bd., Cal.3d 575, 205 Cal.Rptr. 501, 685 P.2d (1984); Collier Superior Los Angeles County, 228 Cal.App.3d 1117, 279 453 (1991). "[W]hen enters justification modern economic costs accidents shift everyday onto shoulders parties." Testimony Monroe Leigh, Hearings H.R. 11315 Subcommittee Administrative Governmental Committee Judiciary, 94th Cong., 2d Sess., (1976). contrast, cited purely 1980), Dominican pursuant 'undesirable aliens.' 1373. airline's "were [It] impressed service perform functions country's laws." 1379. Nor hint 1564, extradition mention Absence distinguishes incidents relied pre-date gives shrift occurrence closely resembles instant strongly enlistment of, cooperation conspired "falsely imprisoned blacklisted, deprive wages rights." 1977(M. Ristau, 1062. Significantly, "arres[t]" "impriso[n]" decide focusing done: "[T]he consideration Organization akin union arranging servicing argued consular involvement employer-employee contractual responsibility, separated therefrom." 1063. Section 1605 provides: "(a) — "(2) key provision 1603. 1603(e) 1603(d), turn, act." interpolating definitions 1603 produces equivalence: "A Maritime Nominees Establishment Guinea, 224 119, 130, 18, 693 1094, 1105, (1982) ("the involves considerations jurisdiction, FSIA's interlocking provisions profitably distinctions mind"). 66, 144 (1988) ("The questions Act" regulating purposes, dispositions") (footnotes Though resolution (because satisfy, narrow jurisdiction), inclined expressed Judge Higginbotham Vencedora Oceanica Navigacion, S.A. Algerienne Navigation, 730 F.2 d 195, 204-205 (1984) (concurring part), interpreted provision, authorize My aspect

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