Chevron

Af-Cap Inc. v. Chevron Overseas (Congo) Ltd.

Good Law
475 F.3d 1080
United States Court of Appeals for the Ninth CircuitJanuary 24, 200704-16387, 04-16388, 04-16788 and 04-16810California6,783 words

Opinion

Opinion

Rawlinson, J.

In this consolidated action, Af-Cap Inc. (Af-Cap), the judgment creditor, appeals the district court’s judgment dissolving and vacating garnishments and liens filed against any property of the Republic of Congo (the Congo), the judgment debtor, held by third party ChevronTexaco Corporation (CT Corp) and domestic Chevron-Texaco subsidiaries (collectively Chevron-Texaco), and dismissing Af-Cap’s writ of execution action filed against ChevronTex-aco, three ChevronTexaco foreign subsidiaries, and the Congo, a sovereign country.

The Congo asserts a sovereign immunity defense against Af-Cap’s attempted execution of its judgment against the Congo’s property allegedly held by ChevronTexaco. The property sought to be garnished includes intangible obligations of Chevron-Texaco owed to the Congo for various bonuses, taxes, and royalties related to the extraction of hydrocarbons, oil, and other of the Congo’s natural resources. Because these obligations were not “used for a commercial activity in the United States,” they are protected from execution or collection under the Foreign Sovereign Immunity Act (FSIA) codified at 28 U.S.C. § 1610 (a). We therefore affirm the dismissal of this…

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