Alpha Therapeutic Corp. v. Nippon Hoso Kyokai

199 F.3d 1078, 99 Daily Journal DAR 12909, 28 Media L. Rep. (BNA) 1353, 99 Cal. Daily Op. Serv. 10036, 1999 U.S. App. LEXIS 33928, 1999 WL 1256289
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 28, 1999
DocketNo. 98-55642
StatusPublished
Cited by11 cases

This text of 199 F.3d 1078 (Alpha Therapeutic Corp. v. Nippon Hoso Kyokai) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alpha Therapeutic Corp. v. Nippon Hoso Kyokai, 199 F.3d 1078, 99 Daily Journal DAR 12909, 28 Media L. Rep. (BNA) 1353, 99 Cal. Daily Op. Serv. 10036, 1999 U.S. App. LEXIS 33928, 1999 WL 1256289 (9th Cir. 1999).

Opinion

PREGERSON, Circuit Judge:

Alpha Therapeutic Corporation (“Alpha”) and Clyde McAuley (collectively “Appellants”) appeal the district court’s dismissal of their diversity action against Nippon Hoso Kyokai (“NHK”), asserting claims for slander, conversion, trade libel, and invasion of privacy. NHK, a Japanese television broadcaster, broadcast two programs that allegedly contained defamatory statements about Alpha and McAuley — the “Hour Long Program,” which NHK broadcast in Japan, and the four-minute “Good Morning Japan Program” (“Morning Program”), which NHK broadcast in both Japan and the United States. Through these programs NHK stated that Appellants: knowingly shipped blood products to Japan that were contaminated with the AIDS virus, falsified documents about its investigation of a blood donor, and falsely reported information about the donor to the United States Food and Drug Administration (“FDA”).

We have jurisdiction over this matter under 28 U.S.C. § 1291. We find that NHK did not implicitly waive immunity under the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1603, by fading to assert immunity under the FSIA in its Answer to the Complaint. Accordingly, we affirm the district court’s dismissal of the Hour Long Program defamation claim on sovereign immunity grounds under the FSIA. We also agree with the district court’s conclusion that NHK is not entitled to immunity under the FSIA for the Morning Program defamation claim because that claim, unlike the Hour Long Program claim, falls under the commercial activity exception to the FSIA.

We reverse the district court’s determination that the “tortious activity” exception to the FSIA applies to Alpha’s conversion claim. We also reverse the district court’s dismissal of McAuley’s invasion of privacy claim for failure to state a claim under California law. In addition, we reverse the court’s dismissal of the Morning Program defamation claim and the conversion claim for forum non conveniens.

I.

Alpha is a California' corporation that produces blood plasma derivatives. McAuley is a California resident who served as Apha’s medical director from 1978 to 1999. NHK is Japan’s only public broadcasting corporation. It was established by the Japanese Broadcast Law nearly 50 years ago and is still managed by appointees of the Japanese government. NHK has an office in Los Angeles.

On January 19 and 25, 1997, NHK broadcast the Hour Long Program, which allegedly contained defamatory statements about McAuley and Apha, on television in Japan. NHK promoted the Hour Long Program with a four-minute news story televised on January 18, 1997, during the Morning Program. Apha alleges that this four-minute news story also contained defamatory statements. The four-minute news story was broadcast twice in the [1083]*1083United States on a Japanese language channel.

NHK developed the Hour Long Program and the Morning Program from 15,-000 pages of documents. These 15,000 pages were confidential, internal documents belonging to Alpha (“Alpha Documents”). Alpha had disclosed these documents pursuant to a protective order solely in connection with unrelated litigation pending in federal court in the United States. In 1996, NHK received bootleg copies of the Alpha documents from an unnamed source.

To produce the programs, NHK sent a team of employees to the United States to conduct research. The NHK employees interviewed a number of Americans, including Appellant McAuley. An NHK reporter interviewed McAuley on the evening of December 27, 1997, at his home in California. The reporter had a hidden microphone on his necktie and secretly recorded the interview with McAuley. A camera operator and sound technician sat in a van parked on the street in front of McAuley’s home. This interview was included in the Hour Long Program. McAuley claims that this interview constituted an invasion of privacy.

On March 3, 1997, Appellants filed a complaint in California state court against NHK alleging slander, conversion, claim and delivery, invasion of privacy, and trade libel. On April 2, 1997, NHK removed the case to federal court under 28 U.S.C. § 1441(d). Several weeks later, on April 22, 1997, NHK filed its Answer. In its Answer, NHK asserted 14 separate defenses. The Answer asserted lack of subject matter jurisdiction as a defense, but did not specifically assert immunity under the FSIA. NHK claims that it was first informed about the FSIA defense on May 9, 1997. NHK could have amended its Answer as a matter of right until May 12, 1997. NHK, however, never amended its Answer to include this additional defense.

Upon Appellants’ request, on May 21, 1997, the district court issued an Order disqualifying NHK’s counsel due to a conflict of interest.

With new counsel assigned, NHK filed two motions to dismiss on June 2, 1997: a motion to dismiss the action for lack of jurisdiction under the FSIA and a motion to dismiss for forum non conveniens. The district court granted both of these motions in March 1998. The court ruled that NHK was entitled to immunity under the FSIA for the Hour Long Program defamation claim, but that the NHK was not entitled to FSIA immunity for the Morning Program defamation claim because that claim constituted “commercial activity.” Nonetheless, the court dismissed the Morning Program defamation claim as well as the conversion claim for forum non conveniens. Additionally, the court dismissed McAuley’s invasion of privacy claim, ruling that McAuley did not state a claim for invasion of privacy.

II. Foreign Sovereign Immunities Act

“The existence of subject matter jurisdiction under the FSIA is a question of law reviewed de novo.” Adler v. Federal Republic of Nigeria, 107 F.3d 720, 723 (9th Cir.1997). We review any factual findings made by the district court regarding jurisdictional issues for clear error. See id.

“The FSIA is the exclusive source of subject matter jurisdiction over suits involving foreign states and their instrumentalities.” Gates v. Victor Fine Foods, 54 F.3d 1457, 1459 (9th Cir.1995) (citing Joseph v. Office of Consulate General of Nigeria, 830 F.2d 1018, 1021 (9th Cir.1987)). Under the FSIA, “a foreign state shall be immune from the jurisdiction of the Courts of the United States and of the States” except under certain circumstances. 28 U.S.C. § 1604. A “foreign state” includes any “agency or instrumentality of a foreign state.” 28 U.S.C. § 1603(a).

[1084]*1084This court has articulated a test for determining jurisdiction under the FSIA. Initially, “the presumption under [the] FSIA is that actions taken by foreign states or their instrumentalities are sovereign acts and thus protected from the exercise of our jurisdiction, unless one of the enumerated exceptions of FSIA applies.” Gregorian v. Izvestia, 871 F.2d 1515, 1528 n. 11 (9th Cir.1989).

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Alpha Therapeutic Corporation v. Nippon Hoso Kyokai
199 F.3d 1078 (Ninth Circuit, 1999)

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199 F.3d 1078, 99 Daily Journal DAR 12909, 28 Media L. Rep. (BNA) 1353, 99 Cal. Daily Op. Serv. 10036, 1999 U.S. App. LEXIS 33928, 1999 WL 1256289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpha-therapeutic-corp-v-nippon-hoso-kyokai-ca9-1999.