Recent Developments In Suits Against Foreign Governments And Corporations Doing Business Abroad

The United States is an attractive forum for plaintiffs to challenge the actions of foreign states, due to U.S. courts' liberal discovery rules, higher damage awards, availability of class actions, and the absence of "loser pay" rules. But foreign states are generally entitled to immunity from such civil suits under the Foreign Sovereign Immunities Act ("FSIA").

As a result, plaintiffs often seek to circumvent FSIA immunity through three different strategies. First, plaintiffs sue private corporations that are not covered by the FSIA, claiming that the corporations were complicit in the foreign state's alleged wrongdoing. Second, plaintiffs sue the foreign states directly, but try to fit the action into one of the FSIA's exceptions to immunity, principally the exceptions for commercial activity, torts, or takings. Third, plaintiffs sue the foreign officials who allegedly committed or ordered the sovereign acts in question, who do not enjoy FSIA immunity.