Theo. H. Davies & Co. v. Republic of Marshall Islands
Opinion
Lead Opinion
Thompson, J.
This case presents the question whether instrumentalities of a foreign state conducted commercial activity within the United States which deprived them of immunity from suit under the Foreign Sovereign Immunities Act (“FSIA”).
Theo. H. Davies & Co., Ltd., doing business as Pacific Machinery (“PacMac”), filed suit in Hawaii state court against the Republic of the Marshall Islands (“RMI”), Kwaja-lein Atoll Development Authority (“KADA”), Kwajalein Atoll Joint Utilities Resources (“KAJUR”) and International Bridge & Construction, Inc. (“IBC”) seeking damages for breach of an agreement relating to the overhaul of a Caterpillar generator. After removal to the United States District Court for the District of Hawaii, the district court granted the motion of defendants KADA and KAJUR to dismiss the action as to them for lack of personal jurisdiction, and denied Pae-Mac’s subsequent motion for reconsideration. PacMac appeals.
We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse. We conclude that because KADA and KAJUR carried on commercial activity in the United States pertaining to PaeMac’s breach of contract claim, they are denied sovereign immunity by 28 U.S.C. § 1605…