Legal Document

127 S. Ct. 2352 (2007) PERMANENT MISSION OF INDIA TO THE UNITED NATIONS et al., Petitioners, v. CITY NEW YORK, New York. No. 06-134. Supreme Court of United States. Argued April 24, 2007. Decided June 14, *2354 John J.P. Howley, for the petitioners. Sri Srinivasan, States as amicus curiae, by special leave Court, supporting Michael A. Cardozo, respondent. Counsel Record, Robert Kandel, Kaye Scholer LLP, York, Steven Rosenthal, David O. Bickart, Washington, D.C., Petitioners The Permanent Mission India to Nations and Representative Mongolia Nations. Norman Corenthal, R. Low-Beer, Brad M. Snyder, Corporation City N.Y., Respondent. Justice THOMAS delivered opinion Court. Foreign Sovereign Immunities Act 1976 (FSIA), 28 U.S.C. § 1602 seq., governs federal courts' jurisdiction in lawsuits against foreign sovereigns. Today, we must decide whether FSIA provides immunity a sovereign from lawsuit declare validity tax liens on property held purpose housing its employees. We hold that does not immunize such suit. I is located 26-floor building York owned Government India. Several floors are used diplomatic offices, but approximately 20 contain residential units employees mission their families. employees all whom below rank Head or Ambassadorare Indian citizens who receive rent free. Similarly, Ministry Affairs People's Republic housed six-story Mongolian Government. Like India, certain Building include residences lower level Under law, real government exempt taxation if it "used exclusively" offices quarters diplomat "with ambassador minister plenipotentiary" N.Y. Real Prop. Tax Law Ann. *2355 418 (West 2000). But "[i]f portion only any lot ... exclusively purposes herein described, then shall be remainder subject ...." Ibid. For several years, (City) has levied taxes petitioners portions buildings house however, refused pay taxes. By operation unpaid eventually converted into two properties. As February 1, 2003, owed about $16.4 million interest, $2.1 million. On 2, filed complaints state court seeking declaratory judgments establish liens.[1] removed cases court, pursuant 1441(d), which removal instrumentality. Once there, argued they were immune suits under FSIA's general rule governments. 1604. District disagreed, relying "immovable property" exception, case "rights immovable situated issue." 1605(a)(4). Reviewing Court's decision collateral order doctrine, unanimous panel Appeals Second Circuit affirmed. 446 F.3d 365 (2006). text exception confirmed petitioners' personal obligations involved property." It therefore had consider City's suits. granted certiorari, 549 U.S. ___, 1144, 166 L. Ed. 2d 910 (2007), now affirm. II "[T]he sole basis obtaining over court." Argentine Amerada Hess Shipping Corp., 488 428, 439, 109 683, 102 818 (1989). FSIA, presumptively suit unless specific applies. 1604; Saudi Arabia Nelson, 507 349, 355, 113 1471, 123 47 (1993). At issue here scope where contend language limits reach actions contesting ownership possession. argues encompasses additional rights property, *2356 including liens. Each party claims international practice at time adoption supports view. agree with City. A begin, always, statute. Limtiaco Camacho, 1413, 1418, 167 212 (2007). provides: "A courts Contrary position, 1605(a)(4) expressly limit itself right title, ownership, Neither specifically exclude lien issue. Rather, focuses more broadly in" property. Accordingly, determine an action declaration places property... 1976, "lien" was defined "[a] charge security incumbrance upon Black's Dictionary 1072 (4th ed.1951). "Incumbrance," turn, "[a]ny to, interest in, land may subsist another diminution value...." Id., 908; see also id., 941 (8th ed.2004) (defining "legal creditor another's property"). law defines "tax lien" accordance these definitions. See 102(21) Supp.2007) ("`Tax lien' means encumbrance property..."). This interpreting Bankruptcy Code, recognized lienholder albeit "nonpossessory" interest. Security Industrial Bank, 459 70, 76, 103 407, 74 235 (1982). practical effects bear out definitions interests runs enforceable subsequent purchasers. 5 Restatement Property 540 (1944). such, "a immediate adverse effect amount [could be] receive[d] sale, constitut[ing] direct interference Argentina 25 N.Y.2d 252, 262, 303 N.Y.S.2d 644, 250 N.E.2d 698, 702 (1969). thus inhibits one quintessential ownershipthe convey. plain implicates B Our reading supported well-recognized related FSIA: restrictive view codification enactment. Until middle last century, followed "the classical virtually absolute theory immunity," cannot, without his consent, made respondent sovereign." Letter Jack B. Tate, Acting Legal Adviser, Dept. State, Attorney General Phillip Perlman (May 19, 1952) (Tate Letter), reprinted 26 State Bull. 984 (1952), Alfred Dunhill London, Inc. Cuba, 425 682, 711, 712, 96 1854, 48 301 (1976) (App. 2 Court). Tate announced States' join majority other countries adopting "restrictive *2357 theory" immunity, regard public acts (jure imperii) state, respect private gestionis)." 1854. In enacting Congress intended codify theory's limitation acts. Weltover, Inc., 504 607, 612, 112 2160, 119 394 (1992); Asociacion de Reclamantes Mexican States, 735 F.2d 1517, 1520 (C.A.D.C.1984) (Scalia, J.). threshold matter, inherently function. Schooner Exchange McFaddon, 7 Cranch 116, 145, 3 287 (1812) ("A prince, acquiring country, possibly considered subjecting territorial jurisdiction, he so far laying down assuming character individual"). addition, meant "to pre-existing practice." Reclamantes, supra, 1521 Therefore, useful note enactment sovereigns immune. most recent restatement relations states sovereign's extend "an obtain possession territory exercising jurisdiction." (Second) Relations 68(b), p. 205 (1965). stated above, because would allowed this rule. respond conclusion citing second sentence Comment d 68, "does preclude claim arising state's possession." 207. According petitioners, When read context, comment ignore first comment, reemphasizes involving "interest And illustrations following make clear refers incidental "injury suffered fall" apply. 208. contrast, eminent-domain proceeding, could immunity. directly implicate both parties rely various agreements, primarily Vienna Convention Diplomatic Relations, Apr. 18, 1961, [1972] 23 U.S.T. 3227, T.I.A.S. 7502, identify pre-FSIA practice. point Convention's analogous withholding relating receiving [the agent] holds behalf sending mission." 3240, Art. 31(1)(a). indicates entitled reasons. First, argue "real action[s]" do performance *2358 "`deriving property.'" Brief (quoting E. Denza, Law: Commentary 238 (2d ed.1998); emphasis deleted). Second, assert "`on Mission.'" 28. shows, apparent term action"a derived civil lawis limited suggest. Chateau Lafayette Apartments, Meadow Brook Nat. 416 301, 304, n. (C.A.5 1969). Moreover, "on State" concerns casenot herewhere local requires agent own name mission. 1957 Y.B. Int'l Comm'n 94-95 (402d Meeting, May 22, 1957); Deputy Registrar Case, 94 I.L.R. 308, 313 (D. Hague 1980). Other tribunals construing Article 31 have staff housing. 312; cf. Intpro Properties (U.K.) Ltd. Sauvel, [1983] 1 Q.B. 1019, 1032-1033. sum, unambiguously support either jurisdictional question.[2] event, nothing deters us our interpretation FSIA. III Because statutory acknowledged issue," affirm judgment remand further proceedings consistent opinion. ordered. STEVENS, BREYER joins, dissenting. channels provide normal method resolving disputes between governmental entities 146, (1812). Following well-established practice, American throughout history consistently endorsed enjoy courts. Verlinden B.V. Central Bank Nigeria, 461 480, 486, 1962, 76 81 (1983); Nevada Hall, 440 410, 417, 99 1182, 59 (1979). fact product comity rather than want juridical power, B.V., U.S., detract important role performs ordering affairs. (FSIA) codified modified basic statute confirms generally courts, 1604, identifies seven exceptions through accept 1605(a). None those pertains, indeed makes reference, brought *2359 liabilities. action, think barred true contains resolve property," 1605(a)(4), estate create constitutes N.Y.C. Admin. Code 11-301 (Cum.Supp.2006). follows literal application applying case. ante, 2356. Given breadth vintage background rule, seems me highly unlikely drafters abrogate whose primary function remedy delinquent taxpayers. majority's logic, since `rights property,'" 2356, whenever municipal recognizes haled litigate lien. Such broad threatens, say, swallow City, example, available among things, compel landowners pest control, emergency repairs, sidewalk upkeep. §§ 17-145, 17-147, 17-151(b) (2000); Mitzner, Liens Encumbrances, Estate Titles 299, 311-314 (J. Pedowitz ed.1984). whole host routine controversies, slip-and-falls landlord-tenant disputes, usedas caseto pierce traditional reclaim governments might casesjust Governments tried herethat slip-and-fall claims, even once transformed liens, burden answering making arguments imposition should bear. force Solicitor curiae buttresses my conviction narrow faithful congressional intent enables dispute classified insofar transferred responsibility decisions Department Judiciary, 487-488, views Executive deference well-reasoned opinions Branch matters within expertise "power persuade, lacking power control." Skidmore Swift & Co., 323 134, 140, 65 161, 89 124 am persuaded. bottom, city's title automatic prejudgment liability. If waive litigation, said so. respectfully dissent. NOTES [1] concedes competent declares valid, foreclosure proceedings. Respondent 40 (noting there no enforcement actions). declarations necessary three declared traditionally concede pay. fails face valid judgment, country's aid reduced 110% outstanding debt. Operations, Export Financing, Related Programs Appropriations Act, 2006, 543(a), Stat. 2214 (hereinafter Operations); Consolidated 2005, 118 3011 Appropriations). Third, [2] offers based Convention, ultimately go merits case, i.e., actually responsible paying question before historical context demonstrate suits, merits-related

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