Earlier this month, the United States Supreme Court decided a case that gave the court occasion to discuss the Foreign Sovereign Immunities Act (the “Act”). The Act is an agreement among nations that limits the liability of foreign governments. The Act generally gives foreign sovereign countries immunity unless the alleged conduct falls within one of the Act’s several exceptions.
In the case, OBB Personenverkehr AG (OBB) v. Sachs, the plaintiff was a California woman who purchased a Eurorail pass over the internet through a U.S.-based travel retailer. In Austria, the plaintiff was attempting to board a train when she fell through a gap between the rail car and the boarding platform. After she fell, a train ran over her legs, requiring the amputation of both her legs. The woman filed suit against OBB, which is wholly owned by the Austrian government.
At trial, OBB sought to dismiss the case against it based on the Act, which generally grants foreign governments immunity from lawsuits. The plaintiff, however, claimed that her case met an exception to the Act’s grant of immunity, specifically that her case “is based upon a commercial activity carried on in the United States by [a] foreign state.”