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sovereign immunity

PennEast Pipeline Company, LLC v. State of New Jersey, et al.

Issues

Without violating the Eleventh Amendment, can a private party exercise the federal government’s eminent-domain power to seize land that belongs to a State, and can a federal court properly hear the case?

This case asks the Supreme Court to consider whether a private company can exercise the federal government’s eminent-domain power and also considers the scope of a federal court’s jurisdiction. Once the Federal Energy Regulatory Commission has issued a certificate of public convenience and necessity, the Natural Gas Act authorizes private parties to exercise the federal government’s eminent-domain power to secure rights-of-way and compensation to the landowner. Petitioner PennEast Pipeline Company, LLC argues that the Natural Gas Act’s delegation is necessary and ministerial, and there is no insult to state sovereignty in suits such as this. By contrast, Respondent New Jersey et al. contends that this delegation violates the Eleventh Amendment’s guarantee of sovereign immunity to the States. Both PennEast and New Jersey argue that the Third Circuit properly exercised its jurisdiction over the case. The outcome of this case has implications for siting new natural gas pipelines, eminent domain, and states’ rights.

Questions as Framed for the Court by the Parties

(1) Whether the Natural Gas Act delegates to Federal Energy Regulatory Commission certificate-holders the authority to exercise the federal government’s eminent-domain power to condemn land in which a state claims an interest; and

(2) whether the U.S. Court of Appeals for the 3rd Circuit properly exercised jurisdiction over this case.

PennEast Pipeline Co. (“PennEast”) plans to construct a pipeline that will pass through Pennsylvania and New Jersey.

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Philippines v. Pimentel

 

Federal Rule of Civil Procedure 19(b) requires a federal court to dismiss a civil action if an unavailable party is indispensable, that is, if the court could not in good conscience proceed without that party. Foreign sovereigns can make themselves unavailable by asserting their sovereign immunity from suit. The Supreme Court will consider the interaction between these two doctrines in this interpleader action to resolve the ownership of property claimed by the Republic of the Philippines ("Philippines") and by Mariano Pimentel ("Pimentel"). The Philippines successfully asserted its sovereign immunity, and now argues that the action cannot proceed in its absence. Pimentel responds that foreign sovereigns cannot stop an interpleader action merely by claiming an interest in the property at issue and then asserting sovereign immunity. The Court's decision in this case will impact courts' ability to adjudicate title to assets claimed by foreign sovereigns. This issue is likely to become increasingly important as sovereigns make ever-greater investments in private sector assets.

Questions as Framed for the Court by the Parties

1. Whether the Republic of the Philippines and its Presidential Commission on Good Government (PCGG), having been dismissed from the interpleader action based on their successful assertion of sovereign immunity, had the right to appeal the district court's determination that they were not indispensable parties under Federal Rule of Civil Procedure 19(b); and whether the Republic of the Philippines and its PCGG have the right to seek this court's review of the Court of Appeals's opinion affirming the district court.

2. Whether a foreign government that is a "necessary" party to a lawsuit under Rule 19 (a) and has successfully asserted sovereign immunity is, under Rule 19(b), an "indispensable" party to an action brought in the courts of the United States to settle ownership of assets claimed by that government.

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Republic of Hungary v. Simon

Issues

Does expropriated property have a commercial nexus with the United States when the property is liquidated, the proceeds from liquidating that property are commingled with a foreign nation’s general assets, and those general assets are then later used commercially in the United States?

This case asks the Court to determine whether the expropriation exception of the Foreign Sovereign Immunities Act is satisfied when a claimant’s assets were seized and liquidated into funds that were “commingled” with the nation’s general assets, and the nation’s general assets were then used for commercial purposes within the United States. Hungary argues that commingled assets do not satisfy the expropriation exception because there is insufficient evidence to establish that the funds from the liquidated assets were directly used in a commercial capacity in the present day. The Simon survivors counter that commingled assets do satisfy the expropriation exception and that there is sufficient evidence that the funds from their seized property were later used for commercial purposes within the United States. This case touches on important questions regarding the role of American courts in international disputes, the Holocaust’s legacy, and human rights violations.

Questions as Framed for the Court by the Parties

(1) Whether historical commingling of assets suffices to establish that proceeds of seized property have a commercial nexus with the United States under the expropriation exception to the Foreign Sovereign Immunities Act; (2) whether a plaintiff must make out a valid claim that an exception to the FSIA applies at the pleading stage, rather than merely raising a plausible inference; and (3) whether a sovereign defendant bears the burden of producing evidence to affirmatively disprove that the proceeds of property taken in violation of international law have a commercial nexus with the United States under the expropriation exception to the FSIA.

Foreign sovereigns generally enjoy sovereign immunity in the United States, which prevents American courts from asserting jurisdiction over them. Simon v.

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Rubin v. Islamic Republic of Iran

Issues

Does 28 U.S.C. § 1610(g) provide a freestanding exception to attachment immunity, which would allow victims of terrorist acts seeking to collect judgment to attach and execute on assets of foreign state sponsors of terrorism regardless of whether the assets are otherwise subject to execution under § 1610?

The issue in the case is whether 28 U.S.C. § 1610(g) provides a freestanding exception to attachment immunity or only eliminates Bancec’s presumption of separate status for a foreign state and its instrumentalities, without altering the criteria for overcoming immunity contained in other provisions of § 1610. Section 1610(g) is part of the Foreign Sovereign Immunities Act, under which foreign sovereigns are presumed immune from suits and attachment. Jenny Rubin, a U.S. citizen injured in a Hamas suicide bombing in Jerusalem, argues that § 1610(g) provides a freestanding exception to attachment immunity because an interpretation subjecting § 1610(g) to the other provisions of § 1610 creates unresolvable inconsistencies within the statute and significantly limits the reach of subsection (g). Iran counters that § 1610(g) does not provide a freestanding exception to attachment immunity because subsection (g) can still be given its intended effect even when subjecting it to § 1610’s other provisions. Iran further argues that the clearest interpretation of subsection (g) is that it merely eliminates the Bancec presumption. From a policy perspective, this case is significant because it could improve the ability of terror victim judgment-creditors to collect judgments from a terror-sponsoring sovereign that is refusing to pay, and it will affect uniformity between U.S. and many other nations regarding attachment immunity laws.

Questions as Framed for the Court by the Parties

Whether 28 U.S.C. § 1610(g) provides a freestanding attachment immunity exception that allows terror victim judgment creditors to attach and execute upon assets of foreign state sponsors of terrorism regardless of whether the assets are otherwise subject to execution under section 1610. 

Petitioner Jenny Rubin (“Rubin”) is one of eight U.S. citizens who were injured in a Hamas suicide bombing in Jerusalem in September 1997. Rubin v. Islamic Repubic of Iran, 830 F.3d 470, 473 (7th Cir.

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Sossamon v. Texas

Issues

Whether the term “appropriate relief” as provided in the Religious Land Use and Institutionalized Persons Act should be interpreted to include monetary damages or instead should be interpreted to include only injunctive and declaratory relief?

 

Harvey Leroy Sossamon, III is an inmate at a Texas state prison. The prison warden refused to allow cell-restricted inmates to attend religious services and denied all inmates use of the prison chapel for religious purposes. In 2006, Sossamon filed suit against the State of Texas and various state and prison officials, alleging that the Texas prison violated the Religious Land Use and Institutionalized Persons Act ("RLUIPA"). Sossamon sought declaratory and injunctive relief, as well as compensatory and punitive damages. The District Court granted summary judgment in favor of Texas, holding that Texas has sovereign immunity under the 11th Amendment and is not liable for damages. The Fifth Circuit affirmed. Sossamon argues here that the words “appropriate relief,” as provided by RLUIPA, unambiguously waives the state's immunity from damages. Texas counters that “appropriate relief” does not amount to clear notice which is required before a state may waive its sovereign immunity. The Supreme Court’s decision in this case will determine the protection afforded to states under RLUIPA and may deter states from implementing policies which violate the Act.

Questions as Framed for the Court by the Parties

Whether an individual may sue a state or state official in his official capacity for damages for violations of the Religious Land Use and Institutionalized Persons Act, 42 U.S.C. §2000cc et seq. (2000 ed.).

Petitioner Harvey Leroy Sossamon, III has been an inmate of the Robertson Unit of the Correctional Institutions Division of the Texas Department of Criminal Justice since 2002. See Brief of Respondents, Texas et al.

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Thacker v. Tennessee Valley Authority

Issues

When determining whether the Tennessee Valley Authority is exempted from sovereign immunity and thus open to being sued, should courts use the “discretionary-function” test from the Federal Tort Claims Act, which would deem the Tennessee Valley Authority immune from suit if it or one of its officers would otherwise be subject to liability due to the performance of a discretionary function; or, should courts construe the exemption from immunity of a “sue and be sued” entity like the Tennessee Valley Authority broadly without a clearly shown exception, as held in Federal Housing Authority v. Burr?

This case asks the Supreme Court to determine the scope of a federal agency’s sovereign immunity to private lawsuits. The Tennessee Valley Authority (“TVA”), while attempting to raise a submerged power line in the river, injured Gary Thacker, who was participating in a fishing tournament. In their lawsuit against the TVA, Gary Thacker and his wife, Venida Thacker, contend that the TVA is not immune to their negligence claim because the TVA is not entitled to a discretionary-function exception—which immunizes a federal agency from private claims that arise from any of its discretionary governmental functions—and, therefore, the TVA may be sued under its statute’s sue-or-to-be-sued clause. The TVA counters that, pursuant to separation-of-powers principles, the TVA Act in fact implies a discretionary-function exception, and, even if it does not, the Suits in Admiralty Act, which indisputably has a discretionary-function exception, would apply and thus immunize the TVA from the Thackers’ suit. At stake here is the balance between a private citizen’s right to sue and the extent that sovereign immunity covers discretionary decisions of administrators and legislators.

Questions as Framed for the Court by the Parties

Whether the U.S. Court of Appeals for the 11th Circuit erred by using a “discretionary-function exception” derived from the Federal Tort Claims Act, from which the Supreme Court generally has declined to borrow rules, instead of the test set forth in Federal Housing Authority v. Burr when testing the immunity of governmental “sue and be sued” entities (like the Tennessee Valley Authority), to immunize the Tennessee Valley Authority from the plaintiffs’ claims.

Gary and Venida Thacker sued the Tennessee Valley Authority (“TVA”) because of an accident that the Thackers allege was caused by the TVA’s negligence. Thacker v. Tennessee Valley Authority at 2. On July 30, 2013, Gary Thacker and his friend, Anthony Szozda, were in a boat on the Tennessee River while participating in a fishing tournament.

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The Republic of Argentina v. NML Capital, Ltd.

Issues

Can a court order post-judgment discovery that would help enforce a judgment against a sovereign nation with respect to all assets, regardless of use or location, or is such discovery limited to assets located in the United States that fall under the Foreign Sovereign Immunities Act of 1976?

In December 2001, Argentina defaulted on its external debt payments. As a result, several bondholders agreed to debt restructurings with the country. However, NML Capital opted to file eleven different actions against Argentina in the Southern District of New York, with the district court ruling for NML in each action. Argentina has not satisfied any of the judgments, forcing NML to pursue Argentinian property located in the United States and abroad to try to attach and execute that property. NML subpoenaed two banks that are not parties to the litigation, seeking information about assets related to Argentina held at those banks. After the banks filed motions against the subpoenas, the district court ordered compliance with them and the Second Circuit affirmed, holding that the court directed the subpoenas at third-party banks seeking only discovery, not attachment or execution, and thus did not impinge on Argentina’s sovereignty. Argentina claims that these subpoenas violate long-standing protections of sovereign immunity. NML counters that the court ordered the subpoenas against non-litigating banks that fall outside sovereign immunity protection. The Supreme Court will now consider whether a court can compel discovery of all assets, regardless of location, of a sovereign state in a post-judgment proceeding that would help enforce the judgment against that state. This decision could affect diplomatic relations between the United States and countries that give reciprocal treatment of judicial decisions.

Questions as Framed for the Court by the Parties

Whether post-judgment discovery in aid of enforcing a judgment against a foreign state can be ordered with respect to all assets of a foreign state regardless of their location or use, as held in the Second Circuit, or is limited to assets located in the United States that are potentially subject to execution under the FSIA, as held by the Seventh, Fifth, and Ninth Circuits.

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Facts

In December 2001, the Republic of Argentina defaulted on its external debt payments. See EM Ltd. v. Republic of Argentina, 695 F.3d 201, 203 (2nd Cir.

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Torres v. Texas Dep’t of Public Safety

Issues

Does Congress have the power to grant suits against nonconsenting states under its constitutional war powers?

This case asks the Supreme Court to consider whether an act of Congress which allows veterans to sue states in their state court violates Article I of the Constitution. Leroy Torres, a veteran who served in Iraq, filed an employment discrimination case in Texas state court against his former state employer after it failed to provide relief for military injuries. The Texas courts found that Torres could not draw the state into a lawsuit using Texas courts. Torres argues that the text, history, and precedent of the Constitution’s war powers require Texas to participate in the suit. The state employer counters that if a private party were to subject Texas to its own judicial system, it would violate principles of sovereign immunity. This case has important implications for injured veterans’ ability to obtain relief from unlawful discrimination and can potentially radically reshape the balance of power between federal and state courts in deciding war powers questions.

Questions as Framed for the Court by the Parties

Whether Congress has the power to authorize suits against nonconsenting states pursuant to its constitutional war powers.

Leroy Torres joined the United States Army Reserve (“Reserve”) in 1989. Petitioner’s Appendix at 2a (opinion of Texas Court of Appeals). In 1998, the Texas Department of Public Safety (“DPS”) hired him as a state trooper. Id.

Acknowledgments

The authors would like to thank Professor Michael C. Dorf for his insights into this case.

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United States v. Bormes

Issues

Whether the Little Tucker Act enables plaintiffs to sue the United States for damages arising from violations of the Fair Credit Reporting Act.

 

Respondent James Bormes used the U.S. government’s online pay system to pay for a lawsuit that he had filed electronically. Following the transaction, the website displayed the last four digits of his credit card and the card’s expiration date. Bormes then sued the government, alleging that it had violated the Fair Credit Reporting Act ("FCRA") by displaying the expiration date. The United States argued that it had sovereign immunity with respect to claims under the FCRA because the Act did not explicitly apply to the U.S. government. When Bormes countered that he could sue the government under the Little Tucker Act, which provides a remedy for those with claims against the government of less than $10,000, the government contended that the Little Tucker Act applied only in situations where parties could not otherwise recover. In deciding this case, the Supreme Court must first determine the scope of the Tucker Acts' waiver of the United States’ sovereign immunity regarding claims brought under the Little Tucker Act for suits based on violations of the FCRA. As the country’s largest employer, creditor, and lender, the U.S. government could see a massive increase in litigation and potential liability as a result of this decision. Additionally, the Supreme Court may address how explicit Congress must act in order to exempt the federal government from liability.

Questions as Framed for the Court by the Parties

Whether the Little Tucker Act, 28 U.S.C. 1346(a)(2), waives the sovereign immunity of the United States with respect to damages actions for violations of the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.

In October 2000, the United States launched pay.gov, an online billing and payment processing service that enables consumers to use credit and debit cards to make payments to numerous government agencies. See Bormes v. United States, 638 F. Supp. 2d 958, 959 (N.D. Ill. 2009) vacated, 626 F.3d 575 (Fed. Cir. 2010). On August 9, 2008, James Bormes, an attorney, used this system to pay for a lawsuit electronically filed in the U.S.

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United States v. Miller

Issues

Does 11 U.S.C. § 544(b) allow a trustee to avoid a transfer to the government, even when the government could not have been directly sued under nonbankruptcy law?

This case asks the Supreme Court to decide whether § 544(b) of the Bankruptcy Code allows a trustee to avoid a transfer to the government when the government could not have been directly sued under nonbankruptcy law. Section 106 abrogates sovereign immunity in certain bankruptcy claims, including § 544(b). Section 544 states that a trustee “may avoid any transfer of an interest of the debtor… that is voidable under applicable law,” which typically invokes state laws that fall outside of the purview of bankruptcy law. The Government argues that § 106 should be read narrowly, and that sovereign immunity is not waived when the actual creditor could not pursue an avoidance claim under the applicable state law due to sovereign immunity. Miller counters that the waiver of sovereign immunity in § 106 extends to the applicable law referenced in § 544. The outcome of this case has serious implications for the powers of trustees in bankruptcy cases and the power of the United States to waive sovereign immunity.  

Questions as Framed for the Court by the Parties

Whether a bankruptcy trustee may avoid a debtor’s tax payment to the United States under 11 U.S.C. § 544(b) when no actual creditor could have obtained relief under the applicable state fraudulent-transfer law outside of bankruptcy.

Chapter 7 bankruptcy proceedings allow for the liquidation of assets to pay off a debtor’s creditors. 11 U.S.C.

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