Plain-English summary
Court narrows when expropriated foreign property or its proceeds create U.S. jurisdiction
The Court unanimously vacated and remanded a D.C. Circuit decision about whether suits against Hungary under the FSIA’s expropriation exception can proceed. The ruling clarifies when foreign property or its proceeds create a sufficient commercial connection to the United States to allow U.S. courts to hear claims for property taken in violation of international law.
Why this matters
The decision affects when U.S. courts can hear claims against foreign governments over property taken abroad. That determines access to U.S. litigation for victims of foreign expropriation and influences how foreign states structure transactions to avoid U.S. jurisdiction. It also shapes the boundary between sovereign immunity and remedies for wartime or other unlawful takings.
Who may feel it
- Individuals and heirs seeking to sue foreign states in U.S. courts over property taken abroad
- Foreign governments and state-owned entities doing business with U.S. persons or using U.S. financial systems
- U.S. courts and litigants in international takings and restitution cases
- Financial institutions and intermediaries involved in cross-border transfers of assets
Key questions
- What level and type of connection between the foreign property (or property obtained for it) and the United States is sufficient to trigger the FSIA’s expropriation exception?