Ruggiero v. Compania Peruana de Vapores "Inca Capac Yupanqui"

639 F.2d 872, 1981 A.M.C. 217, 31 Fed. R. Serv. 2d 192, 1981 U.S. App. LEXIS 20953
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 15, 1981
DocketNos. 577, 698 and 699, Dockets 80-7595, 80-7597 and 80-7599
StatusPublished
Cited by24 cases

This text of 639 F.2d 872 (Ruggiero v. Compania Peruana de Vapores "Inca Capac Yupanqui") is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruggiero v. Compania Peruana de Vapores "Inca Capac Yupanqui", 639 F.2d 872, 1981 A.M.C. 217, 31 Fed. R. Serv. 2d 192, 1981 U.S. App. LEXIS 20953 (2d Cir. 1981).

Opinion

FRIENDLY, Circuit Judge:

The plaintiffs in these three cases are longshoremen seeking damages for personal injuries incurred in New York due to the alleged negligence of a shipowner, as authorized by the Longshoremen’s and Harbor Workers’ Compensation Act (LHWCA), 33 U.S.C. § 905(b).1 In each case the defendant is a shipping company incorporated under the laws of and wholly owned by a foreign government — Peru, Poland and Indonesia, respectively. In each case the plaintiff made a jury demand, F.R.Civ.P. 38(b), and the defendant moved to strike it as inconsistent with the Foreign Sovereign Immunities Act of 1976 (the “Immunities Act”), 90 Stat. 2891 (1976). In a well-considered opinion, 498 F.Supp. 10, the district court granted the defendants’ motions but wisely included the certificate for interlocutory appeals specified by 28 U.S.C. § 1292(b). This court gave leave for such appeals. The United States as intervenor, 28 U.S.C. § 2403(a), submitted a thorough brief in support of the district court’s action. The district court’s decision runs counter to those of some district courts in other circuits2 and we are advised by counsel that the issue is pending on appeal in at least two of them.3

The Immunities Act was intended to be a comprehensive revision of the law with respect to suits against foreign states or entities owned by them. As said in the report of the House Committee, House Report No. 94-1487, 94th Cong.2d Sess., p. 6, reprinted in, [1976] 5 U.S.Code Cong. & Ad.News, pp. 6604, 6604:

The purpose of the proposed legislation as amended, is to provide when and how parties can maintain a lawsuit against a foreign state or its entities in the courts of the United States and to provide when a foreign state is entitled to sovereign immunity.

The extent of the changes wrought by the Immunities Act so far as concerns the question before us can be best understood by comparing 28 U.S.C. § 1332, as it stood before the 1976 enactment (below, on the left), so far as here pertinent, with 28 U.S.C. §§ 1330(a) and 1332(a) as they existed thereafter (on the right).

[874]*874§ 1332. Diversity of citizenship; amount in controversy; costs
(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and is between—
(1) citizens of different States;
(2) citizens of a State, and foreign states or citizens or subjects thereof; and
(3) citizens of different States and in which foreign states or citizens or subjects-thereof are additional parties.
§ 1330. Actions against foreign states
(a) The district courts shall have original jurisdiction without regard to amount in controversy of any nonjury civil action against a foreign state as defined in section 1603(a) of this title as to any claim for relief in personam with respect to which the foreign state is not entitled to immunity either under sections 1605-1607 of this title or under any applicable international agreement.
§ 1332. Diversity of citizenship; amount in controversy; costs
(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and is between—
(1) citizens of different States;
(2) citizens of a State and citizens or subjects of a foreign state;
(3) citizens of different States and in which citizens or subjects of a foreign state are additional parties; and
(4) a foreign state, defined in section 1603(a) of this title, as plaintiff and citizens of a State or of different States.

To this must be added some of the provisions referred to in the new § 1330(a).4 Sections 1603(a) and (b) provide:

§ 1603. Definitions
For purposes of this chapter—
(a) A ‘foreign state’, except as used in section 1608 of this title, includes a political subdivision of a foreign state or an agency or instrumentality of a foreign state as defined in subsection (b).
(b) An ‘agency or instrumentality of a foreign state’ means any entity—
(1) which is a separate legal person, corporate or otherwise, and
(2) which is an organ of a foreign state or political subdivision thereof, or a majority of whose shares or other ownership interest is owned by a foreign state or political subdivision thereof, and
(3) which is neither a citizen of a State of the United States as defined in section 1332(c) and (d) of this title, nor created under the laws of any third country.

Section 1605(a)(2) provides:

§ 1605. General exceptions to the jurisdictional immunity of a foreign state
(a) A foreign state shall not be immune from the jurisdiction of courts of the United States or of the States in any case—
******
(2) in which the action is based upon a commercial activity carried on in the United States by the foreign state; or upon an act performed in the United States in connection with a commercial activity of the foreign state elsewhere; or upon an act outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere and that act causes a direct effect in the United States.

The Immunities Act also added a new 28 U.S.C. § 1441(d), reading as follows:

§ 1441. Actions removable generally
******
(d) Any civil action brought in a State court against a foreign state as defined in section 1603(a) of this title may be removed by the foreign state to the district [875]*875court of the United States for the district and division embracing the place where such action is pending. Upon removal the action shall be tried by the court without jury. Where removal is based upon this subsection, the time limitations of section 1446(b) of this chapter may be enlarged at any time for cause shown.

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Bluebook (online)
639 F.2d 872, 1981 A.M.C. 217, 31 Fed. R. Serv. 2d 192, 1981 U.S. App. LEXIS 20953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruggiero-v-compania-peruana-de-vapores-inca-capac-yupanqui-ca2-1981.