Cassirer v. Thyssen-Bornemisza Collection Foundation

28 U. S. C. § 1606 requires, when sovereign immunity does not apply, foreign states to be subject to the same substantive law a private counterpart would face in equivalent circumstances.

The Foreign Sovereign Immunities Act of 1976 (FSIA), 28 U. S. C. §1602 et seq., governs when a foreign state, or entity owned thereof, is amenable to suit in the United States. Petitioner sued Respondent, a museum owned by the Kingdom of Spain, in federal district court in California. After determining Respondent met an exception exposing them to suit, the District Court utilized choice-of-law rule, opting for Respondent's choice of a federal rule which would require Spanish substantive law. Petitioner argued that California's choice-of-law rule should be used, which would require California substantive law. The Ninth Circuit affirmed. On appeal, the Supreme Court held § 1606 of FSIA requires, when sovereign immunity does not apply, foreign states be subject to the same substantive law a private counterpart would face in equivalent circumstances. The suit raises no federal claims, and as to the underlying substantive law non-immune foreign states are to face should be that of the forum state. Further, even if § 1606 were not so clear, imposition of judicially created federal common law to supplant state made rules must be “necessary to protect uniquely federal interests,” which are not at issue here. Texas Industries, Inc. v. Radcliff Materials, Inc., 451 U. S. 630, 640 (1981). Reversed and remanded.