Immunity from execution and State enterprises - uliege.be
Transcript of Immunity from execution and State enterprises - uliege.be
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Immunity from execution and State enterprises
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Outline
The questions Central Banks Agencies and instrumentalities
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1.THE QUESTIONS
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Mission statement
▷Generic questions– Achieving consistency through
consensus?
– Clarity/predictability?
– Differences immunity from jurisdiction / enforcement?
▷Specific questions– Difference States / ‘Entities’?
– Differences among entities?
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2.CENTRAL BANKS(and monetary authorities)
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Towards a lex specialis?
▷Adoption of specific statutory regimes in many countries - protecting assets central banks / monetary authorities
▷Goal : maintain attractiveness as international financial center → competition among States
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Towards a lex specialis?
▷Specific legislation – e.g.– Australia (sect. 35(1) SFI Act 1985)
– UK (sect.14(4) SIA)
– France (art. L-152-1 Code monétaire)
– Belgium (art. 1412quater CJ)
– Canada (sect. 12(4) SIA)
– …
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Towards a lex specialis?
▷UN level : Art. 21, § 1 (c) 2004 Convention
“property of the central bank or other monetary authority of the State”
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Towards a lex specialis?
▷Common features– Central banks and
monetary authorities– No absolute character –
Narrow exceptions● If commercial activity
(exception : UN Convention)
● Waiver
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Questions
▷Differences statutory regime/court practice?
▷Assets held
– for its own account (sect. 12(4) SIA Canada; § 1611(b)(1) FSIA)
– or also for third parties (BEL)▷Exception : assets used/intended
– “exclusively” (BEL) or
– predominantly (FR) for commercial activity?
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3.‘AGENCIES OR
INSTRUMENTALITIES’Which scope?
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Scope
▷(emerging) consensus on restrictive approach to immunity from enforcement (assets used by State “for other than government non-commercial purposes”)
▷Need to define SO-CE’s /agencies/instrumentalities and subject them to different regime?
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“The distinction between
immunity ratione personae and ratione materiae has
lost most of its importance since the general
acceptance of the restrictive approach to immunity (M.
Kohen 2006)
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Scope
▷Scope issue remains relevant:
– National and int’l law include definitions of scope (what is a ‘State’?)
– Different regimes for State and SO-CE’s (principle + details)
– Addressing scope issue → preempting borderline cases
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Relevant factors to identify ‘agency or instrumentality’ ?
Status / structure
- Is entity distinct from State?- Legal personality?
Relationship entity/state
Nature of link between entity & State
Core functions
Activities of entity
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Scope
▷1st element : status/structure – e.g. legal personality
– France (Sonatrach) : “personnalisés ou non, distincts de l’Etat étranger”
– § 1603 (b) FSIA : separate legal person
– Art. 27 ECSI / sect. 14(1) SIA UK : Entity “distinct” from State
– UN Convention : silent
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Scope
▷2nd element : relationship with foreign state? – Broadly defined – US FSIA (organ,
majority of shares, other ownership interest)
– Loosely defined : ● France : “organismes publics”
(Supreme Court, Sonatrach -1985)● Sect. 3(1)Australian Act : “agency
or instrumentality of foreign State… [but] not department or organ of the exec. gvt of foreign State”
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Scope
▷3rd element : function?▷Contrast
– US : not relevant
– Art. 2 UN Convention : only if ● Status : To the extent that they
are entitled to perform (law of State of origin)
● Performance : and are actually performing acts in the exercise of sovereign authority of the State (forum law)
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How to approach the issue?
▷No real consensus on paper – but application could lead to similar results
▷Function : if included, could be duplicative of commercial activity analysis
▷Need for an open approach – diversity of situations – e.g. SWF
– Either separate, state-owned entity
– Structure part of the State, no legal personality
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Questions
▷Tiered entity (entity indirectly controlled by State through various levels of corporate structure)?
▷Instrumentality owned by two States? Pooling interests?
▷Time for assessment : time the claim arose and/or time proceedings initiated?
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4.‘AGENCIES OR
INSTRUMENTALITIES’Which regime?
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Regime
▷Principle for ‘agencies, instrumentalities, etc.’?
– (presumptive) immunity as a rule?
– Immunity as exception?
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Immunity as exceptione.g. France : assets of agencies etc. are not subject to immunity, save if …
e.g. Canada : … property of an agency of a foreign state is not immune from attachment and execu-tion… save if...
A divided picture
Extensione.g. US, UK, Australia : assets of agencies etc.
benefit prima facie from immunity, but exceptions
e.g. UN Convention (protection against pre-
judgment and post-judgment measures), but
exceptions
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Different outcomes?
▷In practice, result may be identical
– Extension : limited to certain entities - e.g. UN Convention : only if status + performance of “acts in the exercise of sovereign authority of the State”
– If no extension : immunity still available if e.g.
● Canada : if proceedings for which agency enjoys immunity from jurisdiction
● France : if assets earmarked for public purposes
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Different outcomes?
▷Main difference : burden of proof shifted
– Extension : once entity considered part of the State, creditor bears burden of proof (in relation with exceptions)
– If no extension : agency etc. bears burden of proof that assets are earmarked for public purposes
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Regime
▷Exceptions to immunity
– No substantial difference between States and ‘agencies’ etc.
– e.g. waiver, property in use for commercial purposes, etc/
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Regime
▷Minor differences
– Service of process – special rules (e.g. § 1608(b) FSIA; sect. 9(3) Canadian SIA)
– Punitive damages (e.g. § 1606 FSIA : no immunity for agency/ instrumentality)
– No link between property and original claim - US (§ 1610(b)(2) FSIA) & France