Peterson v. Royal Kingdom of Saudi Arabia

332 F. Supp. 2d 189, 2004 U.S. Dist. LEXIS 16911, 2004 WL 1899955
CourtDistrict Court, District of Columbia
DecidedAugust 23, 2004
DocketCIV.A. 03-1771(JDB)
StatusPublished
Cited by13 cases

This text of 332 F. Supp. 2d 189 (Peterson v. Royal Kingdom of Saudi Arabia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterson v. Royal Kingdom of Saudi Arabia, 332 F. Supp. 2d 189, 2004 U.S. Dist. LEXIS 16911, 2004 WL 1899955 (D.D.C. 2004).

Opinion

MEMORANDUM OPINION

BATES, District Judge.

Presently before the Court in this action brought by plaintiff John W. Peterson against the Royal Kingdom of Saudi Arabia (“Saudi Arabia”) and the General Organization of Social Insurance (“GOSI”), an instrumentality of Saudi Arabia (together “defendants”), are the motion of defendants to dismiss the complaint and the motion of plaintiff to strike or, in the alternative, for leave to file a sur-reply. For the reasons that follow, the Court will grant defendants’ motion and deny plaintiffs motion. 1

*194 BACKGROUND

The following facts are alleged by plaintiff. In November 1969, Saudi Arabia established GOSI to promote foreign commerce and attract foreign workers to Saudi Arabia. Compl. ¶ 9. GOSI is separated into two branches: the Occupational Hazards Branch and the Annuities Branch, which provides its participants with retirement benefits. Id. ¶ 23. GOSI invests and reinvests employer and employee contributions to its fund in various corporations, organizations, and international banks. Id. ¶ 25.

Between 1969 and 1987, GOSI contributions were mandatory for private employers and their employees, regardless of national origin or citizenry. Id. ¶ 23. Employers were solely responsible for contributing two percent (2%) of their employees’ salaries to the Occupational Hazards Branch. Id. ¶ 24. Contributions to GOSI’s Annuities Branch were calculated as thirteen percent (13%) of the total value of the employee’s wages and other benefits. Id. The employee contributed five percent (5%) and the employer contributed eight percent (8%) of the monetary contribution. Id. All contributions were made for the benefit of, and in the name of, the employee. Id.

On or about March 10, 1987, the Saudi Government issued Royal Decree No. M/43, which excluded non-Saudi workers from GOSI’s Annuities Branch (“1987 Royal Decree”). Id. ¶26. Pursuant to that Decree, non-Saudi workers were no longer covered by the GOSI Annuities Branch. Id. At some point between 1987 and 1990, defendants decided to refund a portion of the GOSI contributions to foreign workers who had made contributions into the system. Id. ¶ 31. Plaintiff was a foreign worker in Saudi Arabia who made contributions into the GOSI system. In approximately 1990, plaintiff applied for a refund of his GOSI contributions and received a check from defendants in the United States, which purported to represent his five percent monetary GOSI contribution plus some amount of interest for the delay in payment. Id. ¶ 36.

Plaintiff alleges that defendants failed to publicize the GOSI refund program, failed to explain their decision to refund the five percent contribution, and failed to state when the remaining eight percent would be paid. Id. ¶¶ 36-37. Plaintiff alleges that he contacted defendants at the embassy of Saudi Arabia in Washington throughout June .2003 via telephone, electronic mail, facsimile, and certified mail. • Id. ¶ 39. In each of his communications to defendants, plaintiff asked for a date certain by which he would receive the remaining eight percent of his GOSI refund. Id. Defendants failed to provide the requested information. Id. Plaintiff stated that he would give defendants until June 23, 2003, to provide a definitive answer to his refund inquiry and that failure of defendants to respond by that date would be deemed a denial of his refund claim. Id. ¶ 40. Defendants did not respond to plaintiff or provide a complete refund. Id. ¶¶ 40-41.

On August 21, 2003, plaintiff filed his complaint in this Court, asserting claims of: (1) unlawful expropriation of plaintiffs property rights, without just, adequate, prompt compensation in violation of international law; (2) arbitrary and discriminatory treatment of foreign workers with regard to their property in Saudi Arabia; (3) breach of contract; (4) unjust enrichment; and (5) conversion of plaintiffs property and rights in property. Defendants filed their motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(1), 12(b)(2), 12(h)(3), and 12(b)(6) and on act of state *195 grounds on November 21, 2003. A hearing on the motion to dismiss was held on July 16, 2004.

APPLICABLE STANDARD

The Foreign Sovereign Immunities Act (“FSIA”) is “the sole basis for obtaining jurisdiction over a foreign state in our courts.” Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 434, 109 S.Ct. 683, 102 L.Ed.2d 818 (1989). The basic premise of the FSIA is that foreign sovereigns are immune from suit in the United States unless the action falls under one of the specific exceptions enumerated in the statute. 28 U.S.C. § 1604. If the foreign sovereign is not immune, the federal district courts have exclusive jurisdiction over the action. 28 U.S.C. §§ 1330, 1604; Daliberti v. Republic of Iraq, 97 F.Supp.2d 38, 42 (D.D.C.2000)(citing Amerada Hess, 488 U.S. at 434-35, 109 S.Ct. 683).

Under the FSIA, the foreign sovereign has “immunity from trial and the attendant burdens of litigation, and not just a defense to liability on the merits.” Phoenix Consulting, Inc. v. Republic of Angola, 216 F.3d 36, 39 (D.C.Cir.2000) (quoting Foremost-McKesson, Inc. v. Islamic Republic of Iran, 905 F.2d 438, 443 (D.C.Cir.1990)). The special circumstances of a foreign sovereign require the court to engage in more than the usual pretrial factual and legal determinations. Foremost-McKesson, 905 F.2d at 449. The D.C. Circuit has noted that it is particularly important that the court “satisfy itself of its authority to hear the case” before trial. Id. (quoting Prakash v. Am. Univ., 727 F.2d 1174, 1179 (D.C.Cir.1984)).

Once a foreign-sovereign defendant asserts immunity, the plaintiff bears the burden of producing evidence to show that there is no immunity and that the court therefore has jurisdiction over the plaintiffs claims. Daliberti, 97 F.Supp.2d at 42 (citations omitted). A court may dismiss a complaint brought under the FSIA only if it appears beyond doubt that the plaintiff can prove no set of facts in support of his claims that would entitle him to relief. Id. (citations omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

S.K. Innovation, Inc. v. Finpol
854 F. Supp. 2d 99 (District of Columbia, 2012)
Elbasir v. Kingdom of Saudi Arabia
468 F. Supp. 2d 155 (District of Columbia, 2007)
Agudas Chasidei Chabad v. Russian Federation
466 F. Supp. 2d 6 (District of Columbia, 2006)
Gutch v. Federal Republic of Germany
444 F. Supp. 2d 1 (District of Columbia, 2006)
Yang Rong v. Liaoning Province Government
452 F.3d 883 (D.C. Circuit, 2006)
Nemariam v. Federal Democratic Republic of Ethiopia
400 F. Supp. 2d 76 (District of Columbia, 2005)
Peterson, John W. v. Royal Kingdom Arabia
416 F.3d 83 (D.C. Circuit, 2005)
Rong v. Liaoning Provincial Government
362 F. Supp. 2d 83 (District of Columbia, 2005)
Daventree Ltd. v. Republic of Azerbaijan
349 F. Supp. 2d 736 (S.D. New York, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
332 F. Supp. 2d 189, 2004 U.S. Dist. LEXIS 16911, 2004 WL 1899955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-royal-kingdom-of-saudi-arabia-dcd-2004.