On 7 June, the United States Supreme Court issued its decision in the case of Republic of Austria v Altmann. In a 6-3 ruling, the court held that the provisions of the Foreign Sovereign Immunities Act (FSIA) relating to when a foreign sovereign is immune from suit in US courts apply to all claims against foreign sovereigns, regardless of when the claim arose (i.e. even if the claim arose before the 1976 enactment of the FSIA). This ruling alters the legal rule that had been uniformly applied since the passage of the FSIA.
The Supreme Court noted, however, that its ruling was “narrow” in that it was not addressing other defences that may bar claims against foreign sovereigns for acts predating the FSIA. Particular defences highlighted included the act of state doctrine, statutes of limitation and the political question doctrine.
