Janet E. Atkinson v. The Inter-American Development Bank

156 F.3d 1335, 332 U.S. App. D.C. 307, 1998 WL 698394
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 28, 1998
Docket97-7181
StatusPublished
Cited by56 cases

This text of 156 F.3d 1335 (Janet E. Atkinson v. The Inter-American Development Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Janet E. Atkinson v. The Inter-American Development Bank, 156 F.3d 1335, 332 U.S. App. D.C. 307, 1998 WL 698394 (D.C. Cir. 1998).

Opinion

Opinion for the Court filed by Circuit Judge SILBERMAN. "

SILBERMAN, Circuit Judge:

This case involves a well-known method of enforcing a judgment and a little-known im'munity from judicial process. Appellant, in an effort to enforce two state court judgments against her former husband by garnishing his wages, sought a declaratory judgment in the district court that her husband’s employer, a financial institution protected by the International Organizations Immunities Act, is not immunfe from garnishment proceedings under that Act. The district court, concluding that the employer was entitled to immunity under the Act, dismissed the declaratory judgment action. We affirm.

I.

In 1993, a Maryland state court granted appellant Janet E. Atkinson a divorce from her husband, Robert J. Kestell. As part of the judgment of divorce, appellant was awarded alimony of $1,350 per month for four years; child support of $2,850 per month; $20,000 in attorney’s fees; profits from rental property in the amount of $1,221.91; and a monetary award of $111,-475.00 to compensate her for her interest in marital- property controlled by her husband. In 1996, the state court found Kestell in contempt of court for failure to pay alimony and child support during part of 1995, determined that his accrued arrearages totaled $12,600, and entered judgment for that amount.

Appellant’s attempt to enforce these judgments gave rise to the instant litigation. 1 *1337 Kestell moved to Jamaica, taking with him all of his assets except one: the future wages that would be owed to him by his employer, appellee Inter-American Development Bank, an international financial institution headquartered in Washington, D.C. At Kestell’s request and from salary due him, the Bank has paid appellant a total of $4,700 per month — the $1,350 per month alimony and $2,850 per month child support plus $500 per month toward his past arrearages. 2 But Kestell’s cooperation goes only so far. He has steadfastly refused to pay appellant the remainder of her Maryland judgments, either from his Bank salary or otherwise. Accordingly, appellant sought to augment Kestell’s voluntary monthly payments by garnishing the remainder of his salary.

Were Kestell’s employer a run-of-the-mine private firm located in the District of Columbia, a garnishment proceeding would pose few difficulties; appellant would bring her Maryland judgments to D.C. Superior Court and proceed against the garnishee (ie., the employer) under the statutory scheme found in D.C.Code §§ 16-501 et seq. But the Bank is not a run-of-the-mine firm; rather, it is an institution that has been designated by executive order for protection as an international organization under the International Organizations Immunities Act (IOIA), Ch. 652, Title I, 59 Stat. 669 (1945) (codified as amended at 22 U.S.C. §§ 288 et seq. (1994)). See Exec. Order No. 10,873, 25 Fed.Reg. 3,097 (1960); Exec. Order No. 11,019, 27 Fed.Reg. 4,145 (1962). The IOIA entitles designated entities to “enjoy the same immunity from suit and every form of judicial process as is enjoyed by foreign governments, except to the extent that such organizations may expressly waive their immunity for the purpose of any proceedings or by the terms of any contract.” 22 U.S.C. § 288a(b). And a provision of the Inter-American Development Bank Act grants the Bank the right to remove any action brought against it from state court into federal court. 22 U.S.C. § 283f.

This latter obstacle — the likely inability to proceed in state court — would not of itself hinder appellant’s garnishment proceeding, as a federal court can adjudicate garnishment proceedings by applying the local statutory scheme. See Fed.R.Civ.P. 69(a). Recognizing the more substantial hurdle of the Bank’s immunity under the IOIA, appellant brought this declaratory judgment action in the district court to establish that the Bank had waived its immunity, and in the alternative that the Bank’s immunity even absent waiver does not preclude a garnishment proceeding to enforce a divorce-related judgment incurred by an employee of a designated international organization such as the Bank. The Bank moved to dismiss the action, invoking its status as a protected organization under the IOIA and arguing that it had not waived its immunity with respect to this type of proceeding. Reviewing several eases in which we interpreted the extent to which the articles of agreement of the Bank and similar international organizations constitute a waiver of immunity, the district court granted the Bank’s motion.

II.

We begin, as the district court implicitly did, by assuming arguendo that appellee is entitled to absolute immunity under the IOIA and addressing appellant’s contention that appellee has waived its immunity with respect to a proceeding to garnish one of its employee’s wages. 3 Specifically, appellant points to the following provision in the Bank’s articles of agreement:

Actions may be brought against the Bank only in a court of competent jurisdiction in the territories of a member in which the Bank has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities.

Agreement Establishing The Inter-American Development Bank, Apr. 8, 1959, Art. XI, *1338 Section 3, 10 U.S.T. 3068, 3095. In Lutcher S.A. Celulose e Papel v. Inter-American Development Bank, 382 F.2d 454, 457 (D.C.Cir.1967), we construed this provision as not merely a “venue provision for actions resulting from individual waivers; rather it is a provision waiving immunity and laying venue for the suits permitted.”

The parties disagree on whether this waiver is broad enough to encompass a garnishment proceeding such as the one appellant hopes to bring. While the provision might be read to establish a blanket waiver of immunity from every type of suit not expressly prohibited elsewhere in the articles of agreement (only suits by members are expressly prohibited), we rejected that reading in Mendaro v. World Bank, 717 F.2d 610, 614-15 (D.C.Cir.1983) (citing Lutcher, 382 F.2d at 456) (interpreting identical language in the agreement establishing the World Bank).

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Cite This Page — Counsel Stack

Bluebook (online)
156 F.3d 1335, 332 U.S. App. D.C. 307, 1998 WL 698394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janet-e-atkinson-v-the-inter-american-development-bank-cadc-1998.